Zacatecas obtains access at Zacatecas, signs drill deal

Executive Summary

• Zacatecas Silver Corp. has secured a community access agreement with the Ejido Panuco for its flagship Zacatecas silver project, enabling the submission of drill permit applications to SEMARNAT.
• The company has signed a contract with Major Drilling (Mexico) for an initial 4,000 metres of angled diamond drilling, which will mobilize upon receipt of permits.
• The upcoming drilling program aims to extend the strike length of known mineralization and test high-grade intercepts outside the current resource envelope to expand the mineral resource estimate.

Key Details

• Community Access: Unanimously approved agreement with the Ejido Panuco secures surface access for exploration initiatives.
• Permitting: Company will submit applications to SEMARNAT for drill permits; process expected to be straightforward based on previous successful campaigns.
• Drilling Contract: Executed with Major Drilling (Toronto Stock Exchange: MDI).
• Drilling Scope: Initial program consists of 4,000 metres of angled diamond drilling.
• Drilling Objectives: Target extensions of high-grade mineralization within and beyond the current resource envelope; focus on expanding the mineral resource estimate and testing high-grade intercepts outside current bounds.
• Recent High-Grade Intercepts:
  • April 7, 2022: 1.25 metres at 1,440 grams per tonne AgEq (1,423.2 g/t Ag and 0.23 g/t Au).
  • February 16, 2022: 1.23 metres at 750 g/t AgEq (723 g/t Ag and 0.36 g/t Au).
• Current Resource Estimate (May 30, 2023):
  • 3.41 million tonnes at 187 g/t AgEq (173 g/t Ag and 0.18 g/t Au).
  • Total equivalent: 20.5 Moz AgEq (19 Moz Ag plus 19,200 ounces Au).
• Project Status: The Panuco vein system remains open in all directions.

Notable Quotes

• "The new agreement, approved unanimously by the Ejido, underscores strong and continued local support for Zacatecas Silver's exploration initiatives."
• "Permitting is expected to be straightforward, following the same process used successfully in previous campaigns."
• "The upcoming 4,000-metre program will target extensions of high-grade mineralization both within and beyond the current resource envelope, focused on expanding the mineral resource estimate."