In just one year Goldplay Exploration Ltd. [GPLY-TSXV; GLYXF-OTCQB; GPE-FSE] has both doubled NI 43-101 silver resources at the company’s flagship San Marcial Project in Sinaloa State, Mexico and delineated new high-grade gold targets. The project is within Goldplay’s consolidated district-scale land portfolio that encompasses over 250 km2 in the historic Rosario gold-silver Mining District of Sinaloa.
Under an option agreement with SSR Mining, Goldplay can earn a 100% interest over three years by spending CDN $3 million on exploration. The company has already spent CDN $2 million and, at the end of the third year, (May 2021), must pay CDN $2.5 million to SSR Mining, plus shares and a royalty of 1%, which can be bought back.
With recent drilling having encountered precious metals mineralization at depth, this opens the potential for both open pit and underground mining operations. Marcio Fonseca, P.Geo., President and CEO, said, “San Marcial can be a combination of open pit development to start with and eventually underground development as a result of the high-grade mineralization at depth 1-2 metres wide with over 1 kilogram of silver per ounce.
Recent channel sampling has returned continuous zones of wide, high-grade silver on the western, southern and eastern edges of the resource area, including 56 metres grading 196 g/t silver in trench SMtr-001.
The NI 43-101 indicated resources stand at 36 million ounces AgEq and 11 million ounces AgEq inferred. Based on the encouraging exploration results along-strike (6 km) and down-dip, company geologists are of the view that precious metal resources can be significantly increased.
To that end, the company is soil sampling and channel sampling along strike and has identified eight priority targets inside half of the concession, two of which are currently being drilled. High-grade silver values have been discovered near surface as demonstrated by trench SMtr-001.
Bonanza-grade gold mineralization has been encountered such as 1.0 metre grading 204.6 g/t in drill hole SM-19-01 as well as 5.65 metres of 1,225 g/t silver (SM-9). The high-grade drilling intercepts support the potential for new discoveries.
To maximize silver recovery, preliminary metallurgical test work indicates that milling, leaching may be used with recoveries ranging from 84-94%.
Meanwhile, Goldplay anticipates completing a Preliminary Economic Assessment next year. Engineering studies are currently underway.
Goldplay is about halfway through its shallow core drilling program on two targets. Upon receipt of drill results, a decision will be made as to how to go to the next phase of drilling which could include a much larger surface and underground program.
The San Marcial Project is located near excellent infrastructure and has strong community support and a skilled workforce available.
Goldplay has other Mexican prospects in the same mining district: El Habal, Yauco and Villa Union, all of which are in a highly prospective geological setting for gold and silver discoveries. Currently, most of Goldplay’s capital and resources are slated for San Marcial.
Goldplay’s board and management team has a strong track record in all phases of exploration, development and exit strategies. Marcio Fonseca has 25 years of mining and investment banking experience, specializing in Latin America, that included work with Macquarie Bank, Vale, Phelps Dodge and SilverCrest Mines (sale to First Majestic, October 2015).
Strategic investors in Goldplay include international mining consultant JDS Energy and Mining Inc. (4.1%), Sandstorm Gold Ltd. (5.7%), SSR Mining Inc. (2.4%) as well as management and insiders (22.7%). Goldplay has 62,437,929 shares outstanding fully diluted.