Pilot Plant Potential Emerges from Mexico's High-Grade Silver Zones

GR Silver Mining Ltd. (GRSL:TSXV) announced the results of metallurgical test work completed as part of its Bulk Sampling Test Mining Program (BSTM) at the Plomosas Silver Project in Mexico. Conducted at the Mexican Geological Survey (SGM) laboratories in Chihuahua with assaying by SGS Mexico in Durango, the studies were aimed at supporting engineering and design efforts for a potential on-site pilot plant.

Composite feed grades from zones targeted for bulk sampling returned silver equivalent values of 595 g/t (SGS) and 585 g/t (SGM). Rougher flotation tests confirmed recoveries of 71.5% for silver and 77.9% for gold into a lead rougher concentrate, while cleaner flotation tests achieved increased gold recoveries relative to 2021 test work. GR Silver stated that the resulting lead and zinc concentrates were within commercial specifications and showed no concerns for penalties or deleterious elements.

President and CEO Marcio Fonseca said in a company news release, "The key objective of these studies was to support the basic engineering and design of a pilot plant at the Plomosas Project site, as part of ongoing de-risking efforts to potentially bring the historical underground Plomosas Mine back into production."

The test work, supervised by independent qualified metallurgical engineer Shane Tad Crowie, P.Eng. of JDS Energy and Mining, began in June 2025 and concluded in January 2026. Underground sampling included 49-channel samples taken in two phases. These samples were composited into a single >40kg sample for flotation test work, mineralogical studies, and concentrate production. According to the company, the flotation process did not require concentrate regrinding and successfully produced tailings and lead-zinc concentrate samples for further analysis.

The lead-zinc flotation test, simulating the proposed pilot plant flow sheet, was completed using a composite sample with average feed grades of approximately 100 g/t silver, 2.5 g/t gold, over 4% lead, and 2.5% zinc. The results were described as reliable for separating the proposed material during the BSTM.

Silver and gold demonstrated preferential recovery to the lead concentrate in both rougher and cleaner flotation test work. The company has engaged external engineers to incorporate the test results into preliminary engineering and costing studies while evaluating options to secure equipment or a modular pilot plant in Mexico.

Silver Sector Faces Volatility Amid Structural Tightness and Investor Disillusionment

On February 4, Pretiorates observed that the sharp correction in silver prices followed a period of overheating, particularly in speculative markets. The publication noted that "almost everyone was sitting on lavish book profits in silver," and that the sell-off was triggered by a combination of technical signals and investor behavior. Despite a technical recovery, Pretiorates concluded that "optimism in the market has disappeared," adding that "processing this shock will take time — and will most likely result in a continuation of consolidation." The publication also reported that the Chinese silver market continued to see premiums of up to 50% or more on silver ETFs, suggesting speculative interest remained elevated in that region.

According to a February 5 article by a Staff Writer for Markets USA, silver fell more than 15% to around US$75 per ounce during intraday trading, retracing recent gains and extending a series of volatile sessions. The article stated that silver had risen over 130% in the past year but was now trading approximately 35% below its all-time high of US$121.64 per ounce. Metals Daily CEO Ross Norman commented that "speculation is wreaking havoc on the price discovery process for bullion," describing volatility as "self-sustaining, removed from the real market and its drivers." Sucden Financial analysts added that silver was "in a highly flow-driven phase" and emphasized that "volatility is likely to remain pronounced."

On February 6, Chen Lin of What's Chen Buying? What's Chen Selling? commented that silver had broken down due to a broader market selloff led by bitcoin and technology stocks. While expressing a preference for miners over physical silver exposure at current prices, he stated, "I think we should remain calm and use the opportunity to pick up good silver and gold stocks at a deep discount." Lin also highlighted that silver's recent pullback had removed high prices from equity valuations in the mining sector, which he considered favorable for stock selection.

"The High Value Lead Concentrate Is Likely To Facilitate Discussions With Potential Offtake Partners."

In a February 5 report, Taylor Combaluzier of Red Cloud Securities stated that metallurgical test work results from GR Silver Mining Ltd.'s Plomosas Project were encouraging, noting they should help the company "de-risk and restart mining operations at Plomosas." The report emphasized that the test work would provide more accurate cost estimates and design parameters for a potential pilot plant. Combaluzier wrote, "The high value lead concentrate, which includes silver and gold credits, is likely to facilitate discussions with potential offtake partners." He also indicated that further results from pilot plant testing would support engineering and design progress.

Also on February 5, the Silver Advisor newsletter authored by Peter Krauth and Ted Butler reported that GR Silver had delivered "very positive metallurgical test results" from its Bulk Sampling Test Mining Program. The newsletter highlighted recoveries of "about 72% of silver and nearly 78% of gold into a lead concentrate" from rougher flotation tests, and noted that cleaner flotation testing "further boosted gold recovery compared to earlier work in 2021, while maintaining similarly strong silver performance."

According to the publication, all samples were tested under independent metallurgical supervision, confirming parameters such as suitable grind size and flotation times, and allowing production of "saleable concentrates without regrinding." The authors stated, "Bench-scale testing showed that standard lead and zinc flotation is a dependable and effective method for processing Plomosas mineralization."

2026 Workstreams Include Drilling, Plant Design, and Economic Study

GR Silver's February 2026 corporate presentation outlined four major catalysts for the year. These include a 20,000-meter resource expansion drilling program, continuation of the Bulk Sampling Test Mining Program, a resource update, and a preliminary economic assessment (PEA) planned for the second half of 2026.

The company reported that engineering and metallurgical studies were ongoing in support of the BSTM, which will target higher-grade silver zones within 21 underground areas currently accessible at the fully permitted Plomosas mine. 

According to the presentation, GR Silver's planned resource growth initiatives for 2026 include the reassessment of the Plomosas mine and pilot plant, as well as step-out drilling in the San Marcial Area, which is described as largely untested and host to multiple silver-bearing breccia zones. 

A combined mineral resource estimate of 134 million silver equivalent ounces from the Plomosas and San Marcial areas was disclosed as of 2023, and remains the foundation for the company's ongoing exploration and development plans.