en.Wedoany.com Reported - GR Silver Mining (TSXV: GRSL, OTCQB: GRSL, FRA: GPE) announced that Mexico's Ministry of Environment and Natural Resources (SEMARNAT) has confirmed that the company's Plomosas Bulk Sample Trial Mining (BSTM) project does not require a new Environmental Impact Authorization (MIA). The rationale is that the project will utilize existing infrastructure, land use remains unchanged, and no increase in environmental risk is anticipated. This decision removes a key permitting hurdle, leaving only minor permits in process before the company can install a pilot plant at the former Plomosas underground mine.

This exemption is even more critical for GR Silver Mining's San Marcial project. Plomosas is a mining concession area with existing permits and 7.4 kilometers of underground development, representing a shorter-term asset. San Marcial, as an exploration concession area, may require a 5- to 7-year permitting timeline to reach production. By confirming that Plomosas infrastructure is sufficient to support pilot plant operations, the exemption eliminates a major obstacle to establishing a regulatory track record. Management has indicated that this mechanism could shorten San Marcial's permitting timeline. Combined with the company's best drilling results at San Marcial, the exemption advances two conditions needed for project development: permitting progress and resource growth.

The BSTM project at Plomosas is not a production tool. A pilot plant processing 60 to 100 tonnes per day generates limited ounces and cash. Its value lies in creating a regulatory track record for SEMARNAT and state-level authorities. Management has stated that this record could shorten the 5- to 7-year permitting timeline required for San Marcial as an exploration concession area. Each year shortened accelerates potential cash flow, directly increasing the project's net present value (NPV). Interim President and Interim CEO Eric Zaunscherb explained that the BSTM project does not produce many ounces or cash, but the concept is to obtain a social license. He noted that Plomosas is a mining concession area, while San Marcial is an exploration concession area, and obtaining permits in the current environment could take 5 to 7 years. By advancing the bulk sample testing project at Plomosas, demonstrating good operations and hiring local personnel, there is an opportunity to shorten San Marcial's permitting and technical study process, which would significantly impact the project's NPV. The MIA exemption confirms that SEMARNAT accepts the existing infrastructure as sufficient to proceed without a new environmental authorization, thus removing the primary permitting step before installing the pilot plant.

The 2026 step-out drilling program at San Marcial achieved outstanding results: a true width of 45.1 meters grading 1,623 g/t silver, including 18.85 meters grading 3,846 g/t silver, and a highest-grade interval of 8.25 meters grading 8,579 g/t silver, with associated 1.6% lead and 5.5% zinc. Another intercept of 20.6 meters true width grading 32 g/t silver confirmed mineralization extending below 328 meters depth. Early 2026 step-out drilling results indicate grade continuity along the southeast extension to approximately 500 meters depth, with multiple intervals exceeding 350 g/t silver.

The 2023 NI 43-101 mineral resource estimate established a base resource of 134 million silver equivalent ounces for the combined Plomosas mine area and San Marcial zone. Management stated that only about 20% of the area around the central intrusion has been drilled to date, leaving 80% untested. The current 20,000-meter drilling program is approximately 5,000 meters complete, with three rigs operating. Road upgrades from Durango aim to add more rigs. A planned resource update will quantify whether the 2026 step-out drilling has increased the 134 million silver equivalent ounces established in 2023.

Secondary permits for the BSTM project are in process, with no publicly disclosed timeline. Procurement and installation of the pilot plant remain pending completion of secondary permits and current security conditions. Access restrictions in Sinaloa state are a clear factor in the final timeline for the drilling program, resource update, and preliminary economic assessment (PEA), with the company noting that the final schedule depends on sustained access conditions. To reduce personnel risk in Sinaloa, the company has established the city of Durango as a logistics base and is currently upgrading the main secondary road from Durango to the project to accelerate supply and evacuation times. Zaunscherb stated that working from Durango is extremely important for reducing the risk profile, with only the final few kilometers from Durango located within Sinaloa state.

Three drill rigs remain operational, BSTM engineering studies are complete, and secondary permits are in process. Following the passing of founder Márcio Fonseca, all projects continue to advance under interim leadership. Zaunscherb has resigned as Executive Chairman to focus on his role as Interim President and Interim CEO. Director Larry Taddei (Chartered Professional Accountant, former CFO of MAG Silver Corp. from 2010 to 2022) has been appointed Lead Independent Director. Zaunscherb noted that continuity of the field team is critical, as they are passionate about the project and want to move forward; the company will not retreat due to Márcio's passing.

As of May 29, 2026, GR Silver Mining holds C$28.5 million in cash with no debt. At C$0.40 per share, the undiluted market capitalization is C$204 million. The company trades at US$1.65 per silver equivalent ounce, compared to a peer average of US$3.43 per silver equivalent ounce.

Near-term catalysts include: additional step-out drilling results as three rigs continue executing the 20,000-meter San Marcial drilling program (approximately 5,000 meters complete as of June 2026); and a pilot plant procurement announcement, which would confirm the BSTM timeline and the start date for establishing a regulatory track record at Plomosas. The company aims to complete the drilling program in the second half of 2026, followed by a resource update quantifying the resource position relative to the 134 million silver equivalent ounces established in 2023. A preliminary economic assessment is scheduled for completion in the first half of 2027, which will integrate the Plomosas mine area and San Marcial zone into a combined development plan and publish the project's first NPV.

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