Zacatecas Silver Corp. provides an update on its diamond drilling program at the Panuco deposit located within the Zacatecas Property. Twenty nine angled diamond drill holes have been drilled at the Zacatecas Property for a total of 5160 m. Twenty two holes have been drilled into the Panuco North Vein (formerly, Tres Cruces), which is to the north of the Panuco Central Vein.

Assays have been received for 9 holes — several of which intersected significant silver grades (including intercept returning 2.17m at 823 g/t AgEq reported on November 23, 2021). SEMARNAT approved 13 additional drill permits at Panuco North and Panuco Central. Drilling is ongoing at Panuco North with assays pending on multiple drill holes.

The Company has completed necessary environmental studies and has now applied to SEMARNAT for an additional 27 drill pads at Panuco North. An application for drill permits at El Cristo was submitted in December 2021 and approval is expected soon. The Panuco North Vein (Figure 1) strikes northeast-southwest over a distance of at least two kilometres within concessions held by the Company, bifurcating and flexing in part where it thickens in surface outcrop to 3-4 m. Shallow historical workings are developed along the length of the vein.

Despite its significant strike length, only six historical holes have tested the vein with one of the historical holes (PA11-68) intersecting 0.4 m @ 2500 g/t Ag and 3.7 g/t Au from a down hole depth of 625.8 m (approximately 500 m vertical). To date, Zacatecas Silver has only received assays from nine of 22 holes. Returned assays were from the most eastern part of the vein over a strike length of approximately 200 m with multiple significant intersections including 2.17m at 823 g/t AgEq (see news release dated November 23, 2021).

There had been no previous drilling in this eastern part of the vein. The Panuco North Vein is completely open along its remaining 2 km strike length to the west and open at depth. An additional 13 drill hole pads have recently been approved at Panuco North Vein by SEMARNAT and another 27 drill pads are under application, with an expected approval date in February 2022.

The Company is currently drilling shallow angled holes in the northeast of the Panuco North Vein to test the near surface down-dip extension of vein outcrops and shallow historical workings.