Drilling The Santa Valeria Project

DENVER, CO - Gatos Silver, Inc. has commenced at its Santa Valeria project. The Santa Valeria project, located in southern Chihuahua, Mexico, is five kilometers east of the Los Gatos Joint Venture’s 103,000-hectare Los Gatos District mineral concession block. Gatos Silver owns 100% of Santa Valeria, which appears to have similar geologic setting to the Cerro Los Gatos deposit on the eastern flank of the same sedimentary basin. Accordingly, the Santa Valeria mineralization is presumed to be related to eastern basin-bounding fault structures, and exploration by previous concession owners identified silver-bearing mineralization in the footwall zone of the target faults. An eighteen-hole, 5,400-meter drill campaign is planned for the initial test of the principal targets.

Stephen Orr, Chief Executive Officer, said, “The commencement of drilling at our wholly owned Santa Valeria project represents the achievement of another strategic milestone to broaden Gatos Silver’s mineral asset base. Santa Valeria is believed to be a basin-bounding, geologic mirror of Cerro Los Gatos and we are excited to initiate this drill campaign to explore the mineral potential on the eastern half of this prolific basin. The Santa Valeria campaign represents the Company’s first substantive work outside the Los Gatos District in over seven years. Given the extensive geologic understanding accumulated over the past decade at Cerro Los Gatos, we are eager to deploy this substantial knowledge to advance exploration at Santa Valeria.”