Step-Out Drilling Delivers El Pilars Two Best Intercepts to Date as Vein Remains Open

Mercado Minerals Ltd. (MERC:CSE; MRMNF:OTCQB; M2R:FSE) announced drill results from its inaugural 3,000-meter diamond drill program at the Copalito Project in Sinaloa, Mexico. 

The company said highlight results included 0.80 meters grading 9 grams per tonne (g/t) silver, 5.37 g/t gold, 1.65% lead and 10.05% zinc, equivalent to 675 g/t silver equivalent (AgEq), within a broader interval of 3.40 meters grading 11 g/t silver, 3.53 g/t gold, 1.45% lead and 4.41% zinc, or 403 g/t AgEq, beginning at 118.00 meters.

Silver-equivalent grades in the release are calculated using metal prices of US$24 per ounce silver, US$1,900 per ounce gold, US$0.90 per pound lead, and US$1.10 per pound zinc, together with assumed recoveries of 91% silver, 94% gold, 70% lead, and 75% zinc. Mercado said those recovery assumptions are drawn from metallurgical studies on analogous epithermal vein deposits and that no metallurgical work has been reported on the property. All reported intervals are drilled core lengths; true widths have not been established.

At the El Pilar Vein, Mercado said step-out drilling returned what it described as the two best mineralized intercepts at the target to date. The vein has been defined by drilling over a strike length of 1,250 meters, including an approximately 400-meter-long by 200-meter down-dip area of higher-grade mineralization. The company said the vein remains open along strike and at depth in all directions, and that expanding the higher-grade area will be a focus of future programs.

Hole COP-26-019 intersected 3.40 meters grading 11 g/t silver, 3.53 g/t gold, 1.45% lead, and 4.41% zinc (403 g/t AgEq) from 118.00 meters, including 0.80 meters grading 9 g/t silver, 5.37 g/t gold, 1.65% lead, and 10.05% zinc (675 g/t AgEq). Hole COP-26-018 intersected 4.05 meters grading 9 g/t silver, 1.86 g/t gold, 1.19% lead, and 4.08% zinc (264 g/t AgEq) from 117.40 meters, including 0.65 meters grading 18 g/t silver, 3.80 g/t gold, 3.14% lead, and 11.85% zinc (635 g/t AgEq).

At the El Agua Vein, two step-out holes tested the structure along strike and at depth. Hole COP-26-023 returned a broad intercept of 48.40 meters grading 26 g/t silver, 0.33 g/t gold, 0.10% lead, and 0.57% zinc (64 g/t AgEq) from 81.60 meters, including 8.00 meters grading 103 g/t silver, 1.11 g/t gold, 0.18% lead, and 0.86% zinc (200 g/t AgEq). Hole COP-26-017 tested a shallower portion of the vein and returned 1.25 meters grading 66 g/t silver, 0.06 g/t gold, 0.08% lead, and 0.10% zinc (68 g/t AgEq) from 44.75 meters. Mercado said the results define a higher-grade corridor measuring approximately 500 meters along strike and 200 meters down dip within the broader 950-meter strike length, and that mineralization remains open along strike in both directions and partially open at depth.

Five holes tested vein extensions and newly identified targets at southeast 5 Señores, Chente, El Medio, and El Pilar Sur. All intersected the targeted structures, but the assays were weak. At the southeast extension of the 5 Señores Vein, one hole returned two intercepts of 4.50 meters and 7.80 meters grading 28 g/t and 29 g/t AgEq, respectively. Hole COP-26-021 at Chente returned 0.60 meters at 33 g/t AgEq, and hole COP-26-022 at El Medio returned 0.60 meters at 88 g/t AgEq. At El Pilar Sur, hole COP-26-024 cut an 8.80-meter drill-length interval of vein and fault breccia that the company reported as returning no significant results, as did hole COP-26-020 at El Medio. Mercado said the holes confirm the structures are present at depth in previously undrilled ground, and that future targeting work will draw on the surface and drill data to determine where to test them next.

Daniel Rodriguez, CEO and Director, said in a company news release: "We are pleased and encouraged by the results from our inaugural diamond drill program at Copalito. We successfully expanded on known areas of mineralization along strike and at depth at El Agua, 5 Señores, and El Pilar. Early exploratory drilling at SE 5 Señores, Pilar Sur, and El Medio is encouraging for further follow-up and refined drill targeting."

Gold and Silver Prices Held Near Record Highs Ahead of Federal Reserve Decision

As of 6:33 a.m. EDT on July 29, live spot prices showed gold at US$4,047.03 per ounce, up US$11.08, or 0.27%, on the day. Platinum stood at US$1,602.30 per ounce and palladium at US$1,278.06 per ounce.

Reuters reported on July 29 that gold prices edged higher as investors awaited the U.S. Federal Reserve's interest rate decision. Nikos Tzabouras, senior market analyst at Tradu.com, told Reuters, "Gold is holding up today on dip-buying around the psychological US$4,000 level, prospects of a US-Iran diplomatic off-ramp and market expectations for a Fed hold."

According to Reuters, markets broadly expected the Federal Reserve to leave interest rates unchanged, although the CME FedWatch Tool indicated a 31% probability of a 25-basis-point increase. Tzabouras said the policy announcement and subsequent press conference could drive market volatility, adding that "any hawkish signals would open the door to new 2026 lows, currently sitting at US$3,941, while any dovish tilt would give bullion the opportunity to extend its rebound beyond US$4,100."

Reuters also reported that traders assigned a 77% probability to a September rate increase. The news service noted that gold has traditionally been viewed as a hedge against inflation, while higher interest rates tend to reduce the appeal of non-yielding assets. Reuters added that Commerzbank lowered its year-end gold price forecast to US$4,500 per troy ounce while maintaining an expectation that silver could reach US$67 per troy ounce by year's end.

CNBC, citing Reuters on July 29, also reported that gold traded in a narrow range as investors awaited the Federal Reserve's policy decision and comments from Fed Chairman Kevin Warsh for signals on inflation and interest rates. Spot gold traded at US$4,029.08 per ounce, while August U.S. gold futures slipped 0.2% to US$4,028.10 per ounce. Kelvin Wong, senior market analyst at OANDA, told the publication, "Gold is very much connected to today's FOMC meeting... The scenario that may see a potential reversal of the recent bearish bias in gold prices will be the Fed turning to a less hawkish rhetoric."

According to CNBC, markets priced in a 70% probability that the Federal Reserve would leave interest rates unchanged and a 30% chance of a 25-basis-point increase, while expectations for a September increase stood at 76%. CNBC also reported that spot silver traded at US$57.65 per ounce, platinum at US$1,600.40 per ounce, and palladium at US$1,261.00 per ounce.

As of 6:41 a.m. EDT on July 29, spot silver traded at US$58.23 per ounce, up US$0.48, or 0.83%, on the day. Silver was also priced at US$1.87 per gram and US$1,872.09 per kilogram.

Recent market data showed that silver remained well above year-earlier levels despite short-term fluctuations. As of July 28, the metal had declined 2.25% over one day, 2.93% over seven days, and 3.48% over one month. Over longer periods, however, silver had gained 49.62% over the previous year, 127.88% over five years, and 182.96% over 10 years.

Third-Parties Highlight Project Expansion and Continued Drilling

In a June 4 report, Jeff Clark and Daniel Flynn of Paydirt discussed Mercado Minerals' letters of intent to acquire the San Rafael and La California projects, which together cover 4,617 hectares in the San Dimas mining district. The analysts wrote that both projects had seen limited modern exploration and that historic work provided "a promising foundation for a contemporary re-evaluation."

Clark and Flynn stated that the acquisitions did not change their investment thesis, noting that drilling at the Copalito project was already underway and that the company had reported what they described as "encouraging assays." They also wrote that the additional projects reflected Mercado's local experience in Mexico and "add another bite at the cherry in terms of diversification."

The Paydirt report maintained a "RECOMMENDATION: BUY." Clark and Flynn wrote, "The company still has two strong core projects. It has started drilling, just as promised. Early results are encouraging, and more assays should be coming soon."

Writing on June 7, Richard Mills reported that Mercado was expanding its land position in Mexico through the proposed acquisitions of the San Rafael and La California projects. Citing the company's June 2 news release, Mills quoted Chief Executive Officer Daniel Rodriguez as saying, "This is exactly the type of opportunity Mercado is looking for. Our ability to access new projects because of our team in Mexico helped uncover this potential. We are now working towards building a truly district-scale presence with kilometers of cumulative vein strike length and numerous highly compelling targets."

Mills also reviewed progress at the Copalito project, noting that Mercado had released assay results from the first three holes of its 3,000-meter drill program. He cited Rodriguez's April 29 statement: "With these first three results, we are proving the continuation of 5 Señores and growing the potential of that structure. We are happy with what we are seeing and looking forward to interpreting and analyzing the next batch of results. We have moved on to testing El Agua Vein and then El Pilar with a similar approach to what we did at 5 Señores."

Referring to an April 21 drill program update, Mills also quoted Rodriguez as saying, "The goal has been to expand on the known and go test some of the unknown." Rodriguez added, "We see potential to expand on known areas and new areas of interest as the team continues to uncover more through prospecting and sampling."

Exploration Programs Continue Across Copalito and Zamora

According to the company's investor presentation, Mercado's 3,000-meter diamond drill program at Copalito was approximately 65% complete, with additional assay results pending from multiple vein targets. The program is designed to test extensions of known veins, conduct infill drilling, evaluate targets at depth, and drill newly identified targets. Current drilling is expanding the 5 Señores and El Agua veins along strike and at depth while testing the Pilar, El Medio, and El Chente targets, including first drill tests at the southeast 5 Señores extension and El Pilar Sur extension. 

The presentation also states that Mercado's 2026 exploration program includes drone magnetic data collection, LiDAR interpretation, a comprehensive soil sampling program that identified new anomalies, forensic mapping, prospecting, and sampling that delineated new veins and vein segments, and ongoing drill targeting using those datasets. 

For the Zamora project, the presentation states that approximately 3,000 hectares of concessions are being brought back into good standing while systematic surface and underground sampling is being conducted to define initial drill targets across 14 high-grade silver-gold vein occurrences.