Gatos Silver Reports Continued South-East Deeps Extension

VANCOUVER, British Columbia, July 23, 2024 (GLOBE NEWSWIRE) — Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) today provided an update on the drilling and exploration programs in the Los Gatos district (“LGD”) in Mexico. The update includes new intercepts of mineralization in the South-East Deeps (“SE Deeps”) zone of its 70%-owned Cerro Los Gatos (“CLG”) mine, along with an update on the drill results of the recently initiated regional exploration program.

“We are pleased with the latest results which show further potential in the South-East Deeps zone beyond what we will be including in our next reserve and resource estimates update, which we continue to expect to complete in the third quarter of 2024,” said Dale Andres, CEO of Gatos Silver. “The second quarter also highlighted the shift in prioritization to explore the broader Los Gatos district, as drilling continued in Portigueño and commenced on both the Central Deeps and San Luis targets, with early exciting results.”

Chad Yuhasz, VP Exploration and Technical Services added: “Preliminary drill results clearly support our elevated interest within the LGD, with the first two holes in our San Luis target returning wide quartz vein and silicified breccia intersections, including intervals of anomalous precious metals in our first hole and elevated base metal results in our second hole, which we consider to be a very positive start to our district drilling programs.”

Q2 2024 Highlights

• Resource definition drilling in the SE Deeps zone of CLG intercepted additional mineralization along strike and down-plunge, continuing to extend the known mineralized zone. The most significant intercepts are included below (see Table 1 for complete intercept details).
  • 3.5m (2.9m estimated true width, or “ETW”) at 214 g/t Ag, 19.00% Zn, 12.23% Pb, 0.18 g/t Au and 0.25% Cu (SE-600)
  • 3.0m (2.7m ETW) at 81 g/t Ag, 9.94% Zn, 3.88% Pb, 0.81 g/t Au and 0.15% Cu (SE-594)
  • 2.0m (1.6m ETW) at 181 g/t Ag, 2.04% Zn, 0.92% Pb, 0.02 g/t Au and 0.42% Cu (SE-598)
  • 2.0m (1.6m ETW) at 108 g/t Ag, 5.56% Zn, 3.17% Pb, 0.79 g/t Au and 0.44% Cu (SE-598)
  • 6.5m (6.0m ETW) at 43 g/t Ag, 4.52% Zn, 1.78% Pb, 0.14 g/t Au and 0.28% Cu (SE-602)
• Greenfields exploration work in the LGD ramped up during the quarter, with drilling continuing at the Portigueño target, drilling initiated on both the San Luis and the CLG Central Deeps targets, and field mapping continuing in the Lince, San Agustin, and La Paula districts to support additional drill target definition for later this year and into 2025.
  • Portigueño Drilling
    • We completed four more holes at the Portigueño target (~2km from CLG) in addition to the two holes reported in Q1. The drilling continues to intercept veining and alteration with anomalous grades of silver, gold, zinc and lead but low copper, with an interesting intersection in PO-06 with elevated molybdenum values. The drilling continues to test multiple mapped structures within the district, as we explore for a potential host structure within the expected depth profile of the systems. The metal composition of the anomalous drill results continues to be consistent with a location high in the profile indicating potential for further mineralization deeper in the zone (see Table 2 for complete intercept details).
      • 0.7m (0.6m ETW) at 3.11 g/t Au and no significant silver or base metals (PO-05)
      • 1.6m (1.2m ETW) at 49 g/t Ag, 1.69% Zn, 0.32% Pb, 0.09 g/t Au, 0.02% Cu and 0.23% Mo (PO-06)
      • 1.9m (1.5m ETW) at 15 g/t Ag, 1.59% Zn, 0.82% Pb, 2.59 g/t Au and 0.02% Cu (PO-07)
  • San Luis Drilling
    • In May we mobilized a drill rig to the San Luis target (~4.5km from CLG) to test the depth potential of the mapped surface expression of what is interpreted to be an intersection of the main Cerro Los Gatos structure with a secondary structure known as the Iguana Fault. The first two holes tested mineralization potential at approximately 150m below surface along a strike length of 200 metres. The first hole (SL-24-01) intersected a wide quartz vein filled fault structure returning intervals of anomalous precious metals, while the second hole (SL-24-02) returned a wide strongly silicified breccia filled fault structure with intervals of elevated base metal mineralization (see Table 2 for complete intercept details).
      • 8.9m (7.2m ETW) at 66 g/t Ag and 0.17 g/t Au and no significant base metals (SL-24-01) including:
        • 2.5m (2.0m ETW) at 111 g/t Ag and 0.14 g/t Au and no significant base metals
        • 1.6m (1.3m ETW) at 88 g/t Ag and 0.17 g/t Au and no significant base metals
      • 4.2m (3.3m ETW) at 51 g/t Ag, 5.65% Zn, 0.94% Pb, 0.07 g/t Au and 0.14% Cu (SL-24-02) including:
        • 1.6m (1.2m ETW) at 62 g/t Ag, 13.25% Zn, 1.98% Pb, 0.07 g/t Au and 0.18% Cu
  • Cerro Los Gatos Central Zone…