Golden Tag Resources is on track to develop one of Mexico’s biggest silver resources

Owns one of Mexico’s largest undeveloped silver assets Billionaire investor Eric Sprott has a 19% equity stake in the company   New management team and board of directors What Golden Tag Resources does: Golden Tag Resources Ltd (CVE:GOG) (OTCMKTS:GTAGF) is a mineral resource exploration company that holds a 100% interest in the San Diego Project, consisting of four mining concessions encompassing 91.65 hectares, in Mexico’s Velardeña Mining District. The Velardeña District hosts several mines that have been producing silver, zinc, lead and gold for the past 100 years. The Toronto-based company considers San Diego to be one of Mexico’s largest undeveloped silver assets, with an estimated Indicated resource of 31.6 million silver ounces at an average grade of 60 grams per tonne (g/t) and 438 million pounds of zinc, along with an Inferred silver resource of 83.8 million ounces at 62 g/t and 1.2 billion pounds of zinc. The resource estimate, completed in 2013, is based on 59 holes totalling 33,000 metres drilled since 2005. Golden Tag is focused on four key exploration zones at the San Diego Project: 1849 Target Areas; Fernandez Zone Above 1200 Level; the Arroyo Zone; and the Trovador Zone. The company has noted that it has several exploration targets ready to be tested that could potentially expand the deposit materially in several key areas, adding that it is fully permitted to resume exploration drilling. Golden Tag believes the San Diego Project has an additional exploration potential of 70 million to 265 million silver equivalent ounces, based on 20 million to 50 million tonnes grading between 100 and 150 g/t silver equivalent.   The San Diego project is easily accessible via highway and gravel roads, with power and mining infrastructure nearby. Golden Tag Resources is led by CEO Greg McKenzie, a former senior investment banker with more than 20 years of experience with firms such as Morgan Stanley and CIBC World Markets. McKenzie previously practised corporate law with a leading Canadian securities and M&A law firm. As a measure of the company's potential, nearly 19% of Golden Tag’s shares are owned by billionaire resource investor Eric Sprott. How is it doing: Golden Tag Resources continues to encounter promising silver equivalent mineralization during its 2021 drill campaign.   In July, the company said it is in the permitting process with the Secretaria de Medio Ambiente y Recursos Naturales to quadruple the number of allowable drill pads from 14 to 58 on the company’s 100% owned San Diego project in Mexico. Golden Tag noted it is increasing the number of drill pads due to successes from its recent 4500 metre (m) exploration campaign, which included an intersection of 105.77 grams per tonne (g/t) silver equivalent (AgEq) over 116.45m.   The company added the extra drill pads are necessary to determine the full extent of the geologic endowment at San Diego. Earlier in the month, Golden Tag posted encouraging drill results from one hole at San Diego, underscoring the potential of the Fernandez zone. The diamond hole was targeting bulk-tonnage mineralization and, significantly, hit six zones of sulfide skarn mineralization above the Fernandez Zone resource envelope. Results included 306.09 g/t AgEq over a 6.55m length, starting from a depth of 150.42m and another grading 257.67 g/t AgEq over 16.34, starting from a depth of 269.5m. Meanwhile in May, the company revealed a new zone of epithermal mineralization at the San Diego project. Drill hole 21-57 intersected the new zone, with results coming in as high as 892.25 g/t AgEq over 10m  and 115.33 g/t AgEq over 5.54m. Epithermal mineralization at San Diego differs from the more typically seen skarn mineralization on the project because the gold and silver grades are “significantly higher,” Golden Tag said in a statement. Also in May, drill results that intersected 286.02 g/t AgEq over 18.43m identified the existence of potential shoots of skarn mineralization beginning about 265m above the Fernandez Zone, which could connect or be parallel to the western edge of Fernandez. And in April, the company initiated a geologic interpretation program on the San Diego project, which will encompass a comprehensive review of the lithology, alteration, structure, and assay datasets to understand the project’s controls. Golden Tag said that while initial drill results from the first three drill holes of the 2020-21 exploration campaign confirmed the company’s previous understanding deposit, the results also identified the potential for near-surface open-pit style skarn mineralization.  Inflection points: Additional drill results from the San Diego Project An updated resource estimate Improved project economics from a rising silver price What the boss says: Commenting on the company’s discovery of a new zone of epithermal mineralization on its San Diego project, Golden Tag Resources CEO Greg McKenzie said in a statement: “We were pleasantly surprised to have discovered this new mineralization, located at the top of hole 21-57 approximately 500 metres above the planned target area.” McKenzie added: “This is a significant discovery because it opens up the potential for epithermal type mineralization on the San Diego Project, above and beyond the broad skarn mineralization typically encountered. Our next phase of drilling will attempt to follow up and expand upon this discovery.” Contact Sean at sean@proactiveinvestors.com