New Silver Producer
Overview
La Parrilla Silver Complex has restarted operations and is currently ramping up production.
La Parrilla is located in Durango State, Mexico, approximately 76 kilometres southeast of Durango City, the state’s capital, and comprises 40 contiguous mining concessions in good standing, covering 38,128 hectares.
The property was in production continuously between 2006 and September 2019, when it was placed on care and maintenance. During this period, La Parrilla produced 34.3 million silver-equivalent ounces. La Parrilla hosts multiple underground mining areas surrounding the mill, including Rosarios, Quebradillas, and San Marcos. Silver Storm acquired 100% of the La Parrilla Silver Complex in August 2023 from First Majestic Silver.
Geology & Mineralization
Mineralization at La Parrilla occurs in veins and replacement deposits, the locations of which are structurally controlled by pre-existing faults, fractures, and bedding planes.
Veins can be either open space filling, forming massive sulphide and breccia veins, or fault-related, consisting of matrix-supported breccias or gouge containing disseminated sulphides and oxides. The La Parrilla deposits contain primary sulphides. Due to supergene oxidation, the primary sulphides in the upper parts of some deposits have been altered.
Mineral Resource Estimate
The updated Mineral Resource Estimate was modelled using 45 veins across the three underground mining areas of Rosarios, San Marcos and Quebradillas comprising both oxide and sulphide mineralization.
The December 31, 2024 Mineral Resource Estimate includes an additional 138 core boreholes, totaling 18,626 m, as well as an exhaustive reinterpretation of the mineralized structures, completed after the acquisition of La Parrilla in August 2023. The results from the drill program and the reinterpretation enabled an additional 23 mineralized structures to have be modelled, including several that were mined by the previous operator.
Resource Data
| Category and Mineral Type | Qty. (kt) | Grade | Contained Metal | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Silver (g/t) | Gold (g/t) | Lead (%) | Zinc (%) | AgEq (g/t) | Silver (koz) | Gold (koz) | Lead (kt) | Zinc (kt) | AgEq (koz) | ||
| Indicated Oxides | 117 | 308 | 0.15 | - | - | 322 | 1,162 | 0.6 | - | - | 1,215 |
| Indicated Sulphides | 1,079 | 174 | 0.10 | 1.73 | 1.88 | 275 | 6,037 | 3.4 | 18.6 | 20.3 | 9,550 |
| Total Indicated Resources | 1,197 | 187 | 0.10 | 1.56 | 1.69 | 280 | 7,199 | 3.9 | 18.6 | 20.3 | 10,765 |
| Inferred Oxides | 259 | 278 | 0.13 | - | - | 290 | 2,318 | 1.1 | - | - | 2,419 |
| Inferred Sulphides | 1,729 | 159 | 0.12 | 1.46 | 1.63 | 249 | 8,852 | 6.7 | 25.3 | 28.2 | 13,850 |
| Total Inferred Resources | 1,988 | 175 | 0.12 | 1.27 | 1.42 | 255 | 11,169 | 7.7 | 25.3 | 28.2 | 16,269 |
Notes for the Mineral Resource Estimate for La Parrilla as described in the ‘Independent Technical Report for the La Parrilla Silver Mine, Durango State, Mexico’, and prepared by SRK Consulting (Canada) Inc., and dated March 24, 2025, and is available under the Company’s profile on www.sedarplus.ca or the Silver Storm website www.silverstorm.ca.
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Block model estimates audited by David F. Machuca-Mory, PhD, PEng, Principal Consultant (Geostatistics), SRK Consulting Canada Inc.
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Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
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Mineral Resources have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resources and Mineral Reserves.
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All figures are rounded to reflect the relative accuracy of the estimates.
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Reasonable prospects of eventual economic extraction were considered by applying appropriate cut-off grades, removing unrecoverable portions of the estimates, and reporting within potentially mineable shapes.
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Metal prices considered were US$24.00 /oz Ag, US$2,000 /oz Au, US$1.00 /lb Pb and US$1.35 /lb zinc.
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The cut-off grade considered for oxide and sulphide block model estimates were, respectively 165 g/t Ag-Eq and 145g/t Ag-Eq. They are based on 2017 costs adjusted by the inflation rate and include sustaining costs.
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Metallurgical recovery used for oxides based on weighted 2015-2017 actuals was 70.1% for silver and 82.8% for gold
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Metallurgical recovery used for sulphides based on weighted 2015-2017 actuals was 79.6% for silver, 80.1% for gold, 74.7% for lead and 58.8% for zinc.
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Metal payable used was 99.6% for silver and 95% for gold in doré produced from oxides.
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Metal payable used was 95% for silver, gold and lead and 85% for zinc in concentrates produced from sulphides.
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Silver equivalent grade is estimated as: Ag-Eq = Ag Grade + [ (Au Grade x Au Recovery x Au Payable x Au Price / 31.1035) + (Pb Grade x Pb Recovery x Pb Payable x Pb Price x 2204.62) + (Zn Grade x Zn Recovery x Zn Payable x Zn Price x 2204.62) ] / (Ag Recovery x Ag Payable x Ag Price / 31.1035).
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Tonnage is expressed in thousands of tonnes, metal content is expressed in thousands of ounces or thousands of tonnes.
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Totals may not add up due to rounding.
Processing Plant
The La Parrilla processing plant has grinding capacity of 2,000 tonnes per day across parallel flotation and cyanidation leach circuits that treat sulphide and oxide mineralized material, respectively. Sulphide material is processed by differential flotation to produce a silver-rich lead concentrate and a separate zinc concentrate, while oxide material is processed by cyanide leaching to produce doré bars.
Sulphide material is polymetallic, containing silver as its principal economic component together with significant amounts of lead and zinc and minor amounts of gold. Oxide material contains silver as its principal economic component together with minor amounts of gold.
