San Marcial

San Marcial is a 1,250-hectare royalty property located in Sinaloa, Mexico and hosts a low sulfidation epithermal deposit. Operator GR Silver Mining Ltd. (TSX-V: GRSL, “GR Silver”) has a sliding scale royalty payment and buy-back option on the San Marcial property, such that the payments increase as the mineral resource estimate grows. This royalty starts at a 0.75% NSR and a buy-back payment of US $1.25M and can grow and is capped at 1.5% and the buyback payment is calculated as 1 US dollar per gold equivalent ounce.

While San Marcial is best considered a silver deposit, the mineralization is multi-commodity, with zinc and lead closely associated with the silver. High-grade ore styles include wide hydrothermal breccias and stockwork veins. A narrow zone of high-grade gold has also been discovered in a sulfide-rich lapilli tuff unit.

A 2019 NI 43-101 report listed the Indicated Resources of San Marcial at 7.6 Mtonnes grading 117 g/t silver, 0.5% Zn, and 0.3% Pb, for 29 million ounces of contained silver, 86 million pounds of contained zinc, and 53 million pounds of contained lead. The San Marcial deposit remains open at depth and along strike.

GR Silver has identified new targets on the property and continues to expand the resource at San Marcial with underground drilling. An initial PEA that integrates San Marcial and GR Silver’s nearby Plomosas Project is planned to begin in 2022. EMX acquired the royalty asset from SSR Mining Inc. in 2021 (see EMX Press Release dated July 29, 2021).


Class TypeCutoffTonnageAgAgEqZnPbAgAgEqZnPb
   AgEq g/t(000s)(g/t)(g/t)(%)(%)(M oz.)(M oz.)(M lbs)(M lbs)
IndicatedBrecciaBreccia (OP)3029092022410.70.419234229
  Breccia (UG)8055901240.
  Breccia (Total 29632002390.70.419234329
 StockworkStockwork (OP)30455164880.40.29134223
  Stockwork (UG)8095721030.
  Stockwork (Total) 464664890.40.210134324
  Indicated TotalTotal76091171470.50.329368653
InferredBrecciaBreccia (OP)307921311530.480.153483
  Breccia (UG)806381351650.80.0633111
  Breccia (Total) 14301331580.620.1167203
 StockworkStockwork (OP)30172752620.170.093374
  Stockwork (UG)802331211400.030.1711.10.11
  Stockwork (Total) 196060710.160.14474
  Inferred TotalTotal3390911080.350.11012268

A pit shell analysis using a base case of US$18.50 silver price and a cut-off value of 30 g/t, provided a pit constrained Indicated resource estimate of 7.5 Mt with an average grade of 118 g/t silver, 0.51% zinc, and 0.32% lead, and additional pit constrained Inferred resource of 2.5 Mt with an average grade of 77 g/t silver, 0.27% zinc, and 0.11% lead. The pit has a 3:1 strip ratio. Under the pit, there is an Indicated resource estimate of 0.1 Mt with an average grade of 79 g/t silver, 0.54% zinc, and 0.26% lead, and additional Inferred resource of 0.9 Mt with an average grade of 131 g/t silver, 0.59% zinc, and 0.09% lead.

The above resource data was from the Goldplay Exploration Ltd. 2019 NI-43-101 San Marcial Project Resource Estimation and Technical Report, Sinaloa, Mexico. Effective date: March 18, 2019. QP: Marcelo Filipov, P. Geo. and Todd McCracken, P. Geo.. EMX has not done sufficient work to classify the resource as compliant with NI 43-101 regulation. However, EMX believes these results to be reliable and relevant.


Lithology and targets of San Marcial Concession. Click to Enlarge