GMV Minerals hires KP for Mexican Hat drilling

Executive Summary

• GMV Minerals Inc. has signed a drilling agreement with KP Exploration Inc. for its Mexican Hat Gold Project, with the program expected to commence in late March/early April.
• The company is fully financed for the 2026 field season and plans to drill approximately 30 holes totaling 7,000 meters to validate resource categories and optimize pit design.
• The release highlights the 2025 Preliminary Economic Assessment (PEA), which projects a base-case pretax IRR of 66.1% and a mine life of 10 years producing ~60,000 ounces per year.
• The company also announced the grant of incentive stock options for up to 800,000 shares, subject to regulatory approval.

Key Details

• Drilling Program Scope:
  • Contractor: KP Exploration Inc. (Cottonwood, Ariz.).
  • Volume: Approximately 30 diamond core drill holes totaling ~7,000 meters.
  • Timeline: Mobilization expected late March/early April; program duration ~2 months.
  • Objectives: Test resource at different locations to confirm grade variability, validate resource categories, and collect geomechanical measurements for pit optimization.
  • Coverage: Testing all zones at 100m +/- by 100m +/- across the 1,200-meter-long deposit to 100m below the modeled open pit.
• 2025 PEA Highlights (Effective Date: Aug 8, 2025):
  • Base Case ($2,500/oz Au):
    • Pretax IRR: 66.1% (After-tax: 50.2%).
    • Pretax NPV (5% discount): $390.2 million USD (After-tax: $268.3 million USD).
    • Payback Period: 1.53 years (After-tax: 1.82 years).
    • Mine Life: 10 years.
    • Total Production: 597,841 ounces (avg ~60,000 oz/year).
    • Capital Expenditure (Capex): $89,997,000 USD (includes $15.4 million USD contingency).
    • Strip Ratio: 2.05.
  • Price Sensitivity ($4,000/oz Au):
    • Pretax IRR: 134.2% (After-tax: 104.2%).
    • Pretax NPV (5% discount): $1,055 million USD (After-tax: $744.4 million USD).
  • Processing: Conventional heap-leach pad with crushed mineralized material conveyor stacked at ~10,000 tonnes/day.
• Incentive Stock Options:
  • Granted to various officers and consultants.
  • Quantity: Up to 800,000 common shares.
  • Exercise Price: $0.25 per share.
  • Term: Five years from issuance.
  • Status: Subject to TSX Venture Exchange approval.
• Technical Team:
  • Qualified Persons include representatives from Samuel Engineering, DRW Geological Consultants Ltd., Respec, BBA Consultants International LP, and Stantec Consulting Services Inc.

Notable Quotes

• "We are very excited to resume drilling at the Mexican Hat to follow up on the previous drill programs and the updated PEA [preliminary economic assessment] filed last autumn. We are also pleased to have expanded our team of technical experts and have added two geologists with decades of experience." — Ian Klassen, CEO