Author: Atrium Research October 19, 2026
Ben Pirie | Equity Research Analyst | [email protected] | 647-688-9661
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
PLEASE REVIEW THE DISCLOSURES AT THE BOTTOM OF THE PAGE
What you need to know:
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Capitan Silver reported assays for 22 holes at Cruz de Plata, including its deepest hole to date, which hit high-grade silver ~600m down-dip.
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26-ERDD-49 returned 1,639.3 g/t AgEq over 0.9m, while 26-ERDD-32 returned 1,142.0 g/t AgEq over 0.9m.
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Both holes intersected massive sulphides, confirming a new CRD discovery ~500m below the Jesus Maria Silver Trend.
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The Company has reached its 500m vertical depth goal with the system still open, and assays are pending for 80 holes.
This morning, Capitan Silver (CAPT:TSXV, CAPTF:OTC) reported assays for 22 holes from its 60,000m 2026 drill program at the Cruz de Plata Project in Durango, Mexico. Results are from Target Areas A and B, where drilling intersected the deepest mineralization to date, at ~600m down-dip along the Jesus Maria Silver Trend, meeting the Company’s initial target of delineating mineralization over 500m vertical depth. In addition, drilling confirmed CRD-style massive sulphide mineralization beneath the trend. Cruz de Plata now hosts three distinct mineralizing events, including intermediate sulphidation epithermal silver, distal oxide gold at Capitan Hill, and the new CRD system. We are maintaining our BUY rating and target price of $3.50/share on Capitan Silver.
CRD mineralization 500m below Jesus Maria Silver Trend. Drilling at Target A encountered massive sulphide, CRD-type polymetallic mineralization at depth, headlined by hole 26-ERDD-49 that intersected high-grade silver and base metal mineralization 600m down-dip. Hole 26-ERDD-32 confirmed the CRD mineralization up-dip on the same section. Notable results include:
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26-ERDD-49: Lower Zone: 1,639.3 g/t AgEq (959 g/t Ag, 2.73% Cu, 0.62 g/t Au, 12.25% Pb, and 7.95% Zn) over 0.9m. Upper zone: 155.51 g/t AgEq (101.7 g/t Ag, 0.19% Cu, 0.13 g/t Au, 0.49% Pb, and 0.92% Zn) over 9.3m incl. 883.8 g/t AgEq over 0.5m.
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26-ERDD-32: Upper Zone: 330.2 g/t AgEq (201.3 g/t Ag, 0.38% Cu, 0.06 g/t Au, 1.85% Pb, and 2.41% Zn) over 4.1m incl. 1,142.01 g/t AgEq over 0.9m. Lower zone: 230.1 g/t AgEq (127.96 g/t Ag, 0.13% Cu, 0.14 g/t Au, 1.29% Pb, and 2.15% Zn) over 5.6m incl. 315.9 g/t AgEq over 1.1 m.
Grades strengthening at depth. Metal content in the Jesus Maria system is increasing as drilling moves into the high-temperature portions of the system. AgEq grades remain mainly driven by silver, while copper grades are also rising at depth, consistent with the hot core of the system. Highlights from other holes include:
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26-ERDD-35: 676.8 g/t AgEq over 1.4m, and 599.5 g/t AgEq over 1.1m.
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26-ERDD-34: 411.4 g/t AgEq over 1.0m within 212.2 g/t AgEq over 8.5m.
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26-ERDD-19: 363.6 g/t AgEq over 2.4m within 290.5 g/t AgEq over 3.4m, and 551.3 g/t AgEq over 1.0m.
Our take: This morning’s results reinforce our belief that Cruz de Plata hosts a large-scale and robust mineralized system. As evidenced by holes 26-ERDD-49 and 26-ERDD-32, the high-grade system remains open at depth, providing blue-sky exploration upside. CRD systems host some of Mexico’s most significant silver-polymetallic mines and tend to offer higher grade and tonnage potential. While intervals reported today are narrow, the next step is to trace the feeder structures. Three core rigs continue to turn, with focus on >150m step-outs at Targets A, B, and C.
Catalysts
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60,000m Drill Program – Ongoing
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