March 14, 2019

Goldplay Exploration Ltd (CVE:GPLY) Announces High-Grade Silver Zone at San Marcial Project

Midas Letter
Midas Letter
Goldplay Exploration Ltd (CVE:GPLY) Announces High-Grade Silver Zone at San Marcial Project

Goldplay Exploration Ltd (CVE:GPLY) (OTCMKTS:GLYXF) (FRA:GPE) President and CEO Marcio Fonseca provides an update on the company’s operations in Mexico’s Rosario mining district. The San Marcial Project contains an average grade of 196 g/t Ag and the open pit operation is a low cost and high value proposition. It also features a 3.5 km mineralized trend with space to expand on both sides of the strike length. Fonseca believes there is real potential to make this a much larger project and the company is working on creating a drill program. Goldplay has 41 million outstanding shares and a $12 million market cap.


Narrator: Goldplay Exploration Limited is a Canadian-based gold exploration company. The company engages in the acquisition, exploration, and development of mineral resource properties in the United States and Mexico.

Goldplay Exploration owns approximately a 250 square kilometer exploration portfolio in the Rosario mining district in Sinaloa, Mexico, and primarily holds interests in the El Habal property.

Goldplay Exploration Limited was founded in 2012 and trades on the TSX Venture under the ticker symbol GPLY.

[stock_chart symbol=”GPLY:TSV” align=”left” range=”1Y”]

Ed Milewski:  Hey, everybody.  We have Marcio with the CEO of Goldplay Exploration, and I’m just a little of sorts here but we’re going to be fine here in a minute. Here, give me my notes…and my glasses…here we go, here we go. Marcio Fonseca, Goldplay Exploration, GPLY, I’ve met you before, nice to see you. Thanks for coming on. And you’ve got a great play here, I know there’s a lot of potential, and it’s mainly a silver play in Mexico, correct?

Marcio Fonseca:    Yes, that’s right. It’s a gold and silver play in Mexico in the Rosario mining district, the Sinaloa. The first time in that was in the early days of the company, I believe March 2018 when we had just went public, and since then we acquired a multi-million ounce silver asset, high grade silver, open pit.

Ed Milewski:  Yeah, and your background, Marcio, is you’re involved in the investment business for some time?

Marcio Fonseca:    I would say ten years, a good time.

Ed Milewski:  Yeah, yeah, yeah. And are you from Brazil?

Marcio Fonseca:    I was born in Brazil, but I’ve been living overseas for many years, in Canada probably now 13 years.

Ed Milewski:  Okay. Okay. So give us the value here, like, what – now, I’ve seen a lot of plays on a regular basis, this is, I know you’ve got some great numbers in terms of, what’s the word I’m looking for here? Recoveries, and rearranging. Like, we just announced on February 28th, 82 to 92 percent silver. So you’ve got a big deposit. 43-101. Maybe just talk about what you see the potential here.

Marcio Fonseca:    Yes. As you said, we have just released a maiden 43-101, where they have been able to increase materially the indicated and inferred resources. To give an idea, we increased the resources from 30 million ounces of silver equivalent to 47.

Ed Milewski:  To almost – that’s over 50 percent.

Marcio Fonseca:    Yes, and most of that is open pit and high grade, which can be a high margin, low cost potential project, which fits really well in this silver market, Rosario mining district in Mexico.

Ed Milewski:  Now, is this, you know, like, to be blunt, there’s some talk about the jurisdictions in Mexico, you know, you don’t necessarily want to be there because of a lot of the drug money etcetera. How is this jurisdiction?

Marcio Fonseca:    So, to give a bit of the background, the team and myself have been working in Mexico for more than 10 years.

Ed Milewski:  Okay, so people know you.

Marcio Fonseca:    No, and Mexico is not going to change, but there are good places and bad places. In particular, this region, Sinaloa, is very safe and mining-friendly.

Ed Milewski:  All right. And just remind the viewers, how many shares of Goldplay are out right now?

Marcio Fonseca:    So it’s a very tight capital structure. We have 41 million shares outstanding.

Ed Milewski:  41 million, okay.

Marcio Fonseca:    50 million, fully diluted.

Ed Milewski:  Okay. So you’re looking at around 10 million, 11 market cap right now.

Marcio Fonseca:    Twelve.

Ed Milewski:  Twelve million.

Marcio Fonseca:    And important to highlight here that we have a group of really key shareholders that not many junior companies at this stage would have. One of them is Sunstorm Gold, it’s a $1 billion market cap company; JDS Mining & Engineering, based in Vancouver, is the mine builder; they have 3.4 percent.

Ed Milewski:  That’s Stibbard, isn’t it?

Marcio Fonseca:    That’s Jeff Stibbard.

Ed Milewski:  He’s a big, big player. Very big player.

Marcio Fonseca:    His last transaction was, he bought Silver Tip, it’s in northern BC, for $50 million USD.

Ed Milewski:  He’s a real player, there’s no question.

Marcio Fonseca:    I agree.

Ed Milewski:  Okay, so silver, you’re now – tell me about your treasury. How much cash are you sitting on right now?

Marcio Fonseca:    We have close to $1.2 million.

Ed Milewski:  1.2 million. And what about exploration for the next, are you going to be doing some drilling now? Are you drilling now, or are you going to start drilling?

Marcio Fonseca:    So what we’re doing is, because we just announced the increase in the resource, and that resource is on 500 metres strike length; but the company has 3.5 or more, close to 5 kilometres of strike length mineralized trend to explore.

Ed Milewski:  Great.

Marcio Fonseca:    So what we are doing now is going outside of the resource, defining new areas to expand the resource and to multiply this probably by two times. And just as an information very quick for you, we just put on this release about a parallel zone next to the resource, what can be potential open pit, where we intersect 56 metres at close to 200 grams per tonne silver.

Ed Milewski:  So if it has 200 grams, that’s about 6, 7 ounces.

Marcio Fonseca:    Exactly.

Ed Milewski:  Wow, wow.

Marcio Fonseca:    And that’s on surface.

Ed Milewski:  Yeah. And how deep are you drilling – yeah, this is at surface. So let me just go over this again: so you’ve basically looked at 500 metres, and you’re saying this looks like a 3.5 –

Marcio Fonseca:    Kilometres of mineralized trend, because the part of 500 metres is in the centre of the concession. So we have space to expand on both sides.

Ed Milewski:  Both sides, okay.

Marcio Fonseca:    Yep, there’s no restriction about to continue to expand this. We are working as we speak.

Ed Milewski:  So there’s a real potential to make this much larger.

Marcio Fonseca:    I agree.

Ed Milewski:  Okay, okay. Well, listen, is there anything you want to add?

Marcio Fonseca:    So it’s a young company; probably next week, we’ll celebrate one year old. The team altogether in one year has been able to accomplish a lot, from going public with an exploration portfolio when we met for the first time; two months after that, we acquired a multi-million ounce asset. In less than nine months we were able to put a new resource together. We are moving now to do some engineering, and likely we’re going to add some drill holes as well, because we got permits for the drilling.

Ed Milewski:  Very good, very good. So we’ll leave it there, and then we’ll have you back in due course to give us an update. How’s that?

Marcio Fonseca:    Fantastic.

Ed Milewski:  Okay, thanks Marcio. Thank you.

Related Articles


Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.