Capitan Silver Corp. (CAPT:TSX.V; CAPTF:OTCMKTS) announced results from its surface exploration efforts at the Cruz de Plata silver-gold project in Durango, Mexico, following the August 2025 acquisition of a 2,171-hectare strategic land package, wrote Atrium Research analysts Ben Pirie and Nicholas Cortellucci in an October 1 research note.
The exploration has identified several high-priority targets and high-grade showings, including significant extensions of known mineralized structures, which CAPT is advancing towards drill readiness, with six targets already pinpointed, wrote the analysts, who rated the stock a Buy with a target price of CA$2.40 per share, a 50% return from the price at time of writing.
The findings reveal that the hydrothermal system at Cruz de Plata is more extensive than previously understood, with mineralization stretching several kilometers north of the 2025 drill program and present across all major geological units, they noted.
In response, the company has expanded its fully funded Phase 1 drill program by 50% to 15,000 meters and has launched a comprehensive airborne geophysical survey across the property, marking its first extensive effort to enhance target generation throughout the entire project.
Capitan has completed over 8,000 meters of drilling at Cruz de Plata as part of its 2025 RC drill program, with assays pending for 38 holes, and additional samples are being sent to the lab weekly. We anticipate a steady flow of news as results are released, offering greater clarity on the scale and continuity of mineralization.
Airborne Geophysical Program
Additionally, CAPT has commenced an airborne magnetic and magneto-telluric survey covering 385 line-kilometers across the entire property. This survey will produce magnetic maps and derivatives, along with conductivity and resistivity models, which will assist in identifying new alteration zones, refining geological features and lithologies, and tracing extensions of structures, including faults, to depths of 1 kilometer, Pirie and Cortellucci said.
Atrium's Take
The new results provide significant insights into the geological model for the property, which has been crucial in defining and discovering new priority targets across the expansive land package, the analysts wrote.
The model, confirmed through surface sampling, has highlighted a clear relationship between high-grade silver mineralization and the edge of a large granodiorite intrusion, they wrote. This model holds true on the north side of the intrusion, greatly expanding the project's size potential. We are pleased with the expansion of the 2025 exploration program, as this property is extensive and will require substantial drilling. Moreover, the property-wide geophysics program is of particular interest, as this is the first time such a survey has been conducted across the property.
Catalysts
The analysts noted some upcoming catalysts for the company, including more drill results expected this year, a Capitan Hill Updated Mineral Resource Estimate in H2/25, and ongoing surface work and geophysics on new targets and parallel zones.
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