04:40 PM EDT, 10/02/2024 (MT Newswires) -- Gatos Silver ( GATO ) after trade Wednesday provided an update on the drilling and exploration programs at its 70%-owned Los Gatos district in Mexico.

The company's update highlights early "positive" results including mineralized intercepts on the Central Deeps target and the potential for a further extension of the South-East Deeps zone at the Cerro Los Gatos Mine (CLG). The update also highlights key developments in the ongoing regional exploration program.

Gatos said at CLG, step-out exploration drilling in a previously untested area beneath the main Central zone has discovered a new zone of mineralization not included in the company 2024 mineral reserve estimate, indicating vertical mineralization extensions up to 175 meters. Also at CLG, Gatos resource extension drilling in the South-East Deeps zone continues to intercept additional mineralization along strike and down-plunge, continuing to extend the known mineralized zone.

"The exploration results this quarter continue to demonstrate further life extension potential at CLG beyond the recently announced mine life that now extends to the end of 2032," chief executive Dale Andres said in a statement. "Our first three holes in the Central Deeps target, an area which has never been tested before, hit mineralization. The latest results in the South-East Deeps zone show further extension potential to the south-east of the current mineral reserves in this area."

Gatos shares closed up $0.63 to $21.63 on the Toronto Stock Exchange