Grafton Resources signs LOI to acquire Silver One Project, Chile

Grafton Resources Inc. [CSE: GFT; OTCQB: GFTFF] has entered into a non-binding letter of intent (LOI) with Asesorias e Inversiones Sol SpA , the vendor, under which the company proposes to acquire a direct 100% interest in the Silver One Project in Chile.

Highlights: Potentially high-grade silver-copper veins as waste dump vein material averages 296 g/t Ag and 2.6% Cu. Historic mining district hosts many Au-Ag-Cu epithermal vein systems. Silver One Project hosts an undrilled and open-ended mineralizing system.

Campbell Smyth, CEO and Chairman, commented: “Silver One offers the opportunity to explore a high-grade silver-copper target that is uniquely well suited for development. The project is located in a well-established mining area and Silver One has the potential to be the next high-grade Ag-Cu deposit in this district.

“Grafton now has two ideally located projects in a premier mining jurisdiction. There is a global shortage of silver and copper assets with good grade, clean metallurgy and simple geometry. We plan to drill Silver One in the second half of 2026 and are currently building up our local exploration team. Silver One is also accessed from the same logistical hub as the recently signed Alicahue Copper project offering further logistical synergies.”

Merlin Marr-Johnson, Technical Advisor, said: “Silver grades of almost 300 g/t in the waste material are highly encouraging. The hope is that the primary material is even higher grade. The high tenor of the target, coupled with good access means that significant value can be created within a compact package.”

The Silver One Project is centered on the San Lorenzo 1-18 concession located in the historic Au-Ag-Cu mining Pedernal district of the Petorca Municipality, central Chile. The project is accessed via established gravel roads from Chincolco and Pedernales, with short private-road access to the site. Historic work was carried out by Eagle Rock Resources SpA under a lease agreement with S.C.M. Cerro Pedernal Dos.

The Silver One Project is located in the region around Petorca which hosts nearly 90 ore bodies, mostly polymetallic veins, some copper veins, and one copper breccia pipe. The area is characterized by epithermal low sulfidation vein systems hosted by Cretaceous volcanic andesitic sequences in the western foothills of the Andean Cordillera of central Chile.

The Silver One Project targets silver-copper-bearing sulphide vein systems historically exploited by underground methods. The adit mouth is located at 332,252 E; 6,448,714 N (WGS 84, UTM Zone 19 South) Historic workings indicate the presence of structurally controlled mineralization hosted within volcanic and volcaniclastic sequences, with mineral assemblages consistent with Ag–Cu sulphide systems typical of the region. Work completed by Eagle Rock focused on integrating modern survey techniques with geological mapping and targeted sampling: High-resolution drone-based topographic survey, generating 2 m contour intervals and a 3D surface model. Surface geological mapping identifying a volcanic–volcaniclastic stratigraphic sequence dominated by andesitic lavas, volcanic breccias, and tuffs. Rehabilitation and LIDAR survey of the Esperanza Adit (~400 m), enabling accurate 3D modelling of underground access. Detailed underground geological mapping of the adit, identifying a vertically stacked sequence of grey to red andesites overlain by thick volcanic breccia and tuff units. Trenching and channel sampling of historic mine waste dumps to establish a proxy for grade where direct access to old stopes was not possible.

The underground mapping identifies that mineralized veins are hosted within grey volcanic breccias with reducing characteristics, interpreted as the favourable horizon for Ag–Cu sulphide deposition. The absence of surface exposure implies mineralization is blind and structurally controlled, potentially confined to a coherent zone with a probable SW–NE structural orientation.

A detailed evaluation of a historic waste dump combined trenching, systematic sampling, granulometric analysis, topographic surveying, 3D modelling, and volumetric estimation. Ten pits (1–3 m deep) and 24 samples defined an estimated 8,120 tonnes of historic mine waste, with average grades of approximately 96 g/t Ag and 0.80% Cu, calculated using a loose bulk density of 1.43 g/cm³.

Although the historic workings are not fully accessible, the combination of underground geometry, favourable lithological hosts, and multi-element sulphide mineralization confirms the presence of an open-ended mineralizing system. Potential next steps include securing safe access to historic stopes and raises to directly sample in situ vein material. Targeted geophysical surveys (IP/resistivity) to define sulphide structures beneath cover. Focused drilling to test continuity, thickness, and grade of interpreted vein zones.

Under the terms of the LOI, the company proposes to acquire the project in exchange for total deemed consideration of C$820,000 comprised of a cash payment of C$100,000 to the vendor; and the issuance of 800,000 common shares in the capital of the company to the Vendor at a deemed price of $0.90 per consideration share having an aggregate deemed value of C$720,000. The shares issued will be subject to voluntary escrow provisions and will be released over 36 months.

The final structure of the proposed acquisition is subject to, among other things, the negotiation and execution of a definitive agreement, completion of satisfactory due diligence, and the satisfaction of customary closing conditions.

The company also reported that its common shares will begin trading under its new OTC ticker symbol “GFTFF”, effective January 20, 2026. The company’s CUSIP number remains unchanged.