GRG Resources Announces Start of First Drill Program at Atakama Gold Project, Chile

GRG launches 4,000-metre drill program at Atakama Gold Project, Chile, targeting Paula zone.

What the company is saying

GRG Resources Corp. (TSXV:GRG, FSE:G6A, OTCQB:GARWF) is announcing the start of its first diamond drilling campaign at the Atakama Gold Project in Chile, emphasizing a data-driven and methodical approach. The company frames the narrative around technical progress, highlighting up to 4,000 metres of planned drilling, with an initial 2,000 metres across 10 holes at the Paula target to be finished by year-end. Management, led by President & CEO Nikolaos Cacos and VP Exploration and Development Brian McEwen, stresses the expansion of the mineralized footprint at Paula and the use of geophysics and trenching to refine targets at three additional areas. The announcement underscores the project's scale (over 9,000 hectares), the collection and analysis of 2,782 surface samples, and the completion of 726 line-kilometres of ground magnetic survey. The company claims readiness to move quickly to infill drilling and resource estimation next year if initial results are positive, and notes financial positioning to support this. The tone is confident but measured, with forward-looking statements clearly tied to upcoming technical milestones and results.

What the data suggests

The disclosed figures confirm that GRG Resources has begun a 4,000-metre diamond drilling program at Atakama, with 2,000 metres in 10 holes at Paula targeted for completion by December 2026. The project covers more than 9,000 hectares and includes four defined targets: Paula, Cerro Sur, Lolita Norte, and Dos Marias. Technical groundwork is advanced, with 2,782 surface samples analyzed, a 726 line-kilometre ground magnetic survey completed, and an ongoing 67 line-kilometre IP survey (17.5 line-kilometres at Paula finished). At Paula, trench sampling identified a core zone with five trenches exceeding 1 g/t Au over more than 20 metres, within broader intervals up to 110 metres wide. The initial drill holes will test both the main breccia structure and additional geophysical anomalies. The company operates Atakama through a 75%-owned Chilean subsidiary. No resource estimate or economic study is yet available, but the technical data indicates a systematic exploration process with near-surface gold mineralization and accessible infrastructure. The evidence supports the narrative of early-stage but well-advanced exploration, with the next value inflection point dependent on drill results.

Analysis

The announcement provides a detailed and factual update on the commencement of GRG Resources Corp.'s first diamond drilling program at the Atakama Gold Project in Chile. The tone is positive but proportionate to the operational milestones achieved: drilling has started, surface sampling and geophysical surveys are complete or underway, and specific technical data (e.g., trench grades, survey line-kilometres) are disclosed. Forward-looking statements (such as additional drilling in the new year and potential resource estimation) are clearly identified as contingent on results and are not overstated. There is no evidence of exaggerated claims about imminent resource definition or production, and no large capital outlay is disclosed without a clear operational plan. The gap between narrative and evidence is minimal, with most claims supported by concrete technical progress. The absence of financial data is not a deficiency for an exploration-stage update.

Risk flags

• ●Exploration risk is high, as there is no guarantee that drilling will confirm economic mineralization at depth despite promising surface trench results. Many early-stage gold projects fail to convert surface anomalies into viable resources.
• ●Execution risk exists around completing the drilling program on schedule and within budget, especially as the next phase is contingent on results and includes new targets. Delays or technical setbacks could push timelines or increase costs.
• ●Disclosure risk is moderate; while technical data is detailed, there is no information on exploration budgets, cash position, or funding for subsequent phases. Investors cannot assess capital adequacy or potential dilution risk from this announcement alone.
• ●Resource definition risk is present, as the company has not yet produced a compliant resource estimate. The transition from exploration results to a formal resource can be protracted and is not assured even with positive drill data.
• ●Jurisdictional risk is relevant given the project's location in Chile, which is generally mining-friendly but can be subject to regulatory or permitting changes that might affect timelines or project economics.

Bottom line

GRG Resources is making tangible progress at the Atakama Gold Project, with a 4,000-metre drill program now underway and the first 2,000 metres at Paula expected to finish by December 2026. The technical groundwork is robust, with extensive sampling, mapping, and geophysical surveys already completed, and initial trench results at Paula showing gold grades above 1 g/t over significant widths. The company's operational narrative is credible and well-supported by disclosed data, but the investment case remains dependent on forthcoming drill results and the ability to move quickly to resource estimation if warranted. No financial or funding details are provided, so investors must watch for future updates on capital needs and drill outcomes. The most important takeaway is that GRG is entering a critical phase where technical results, not narrative, will determine project and share value.

Announcement summary

(TSXV:GRG) (FSE:G6A) (OTCQB:GARWF) GRG Resources Corp. has commenced its first diamond drilling program at the Atakama Gold Project in Chile. The initial program is planned to include up to 4,000 metres of drilling. The first phase will consist of 10 holes totaling 2,000 metres at the Paula target, with completion expected by the end of the year. Concurrently, geophysics and trenching programs will be conducted at the other three priority areas to refine drill targets. In the new year, an additional 2,000 metres of drilling is expected, including follow-up at Paula and first holes at the other three targets, contingent on results from the next two months. Four target areas have been identified across the more than 9,000-hectare project area: Paula, Cerro Sur, Lolita Norte, and Dos Marias. Detailed mapping has been completed at all targets, and a total of 2,782 surface samples have been collected and analyzed. A ground magnetic survey was completed in October, with north-south lines spaced 100m covering most of the project area, totaling 726 line-kilometres. An Induced Polarization (IP) survey is underway for a total of 67 line-kilometres, including nine sections at Paula totaling 17.5 line-kilometres that are complete and being interpreted. At Paula, 50m dipoles were used, and 100m to 150m dipoles will be used elsewhere. The geophysical work was completed by Argali Geofisica EIRL. The Paula target is a gold-mineralized structural system of breccias and veins hosted in volcanics, exposed at surface over approximately one kilometre of strike and 400 metres of width, and is open to the north, south, and west. Sampling of seventeen trenches at Paula delineated a core mineralized zone highlighted by five trenches with greater than 1 g/t Au over more than 20 metres within lower-grade intervals reaching up to 110 metres in width. Many trenches ended in mineralization and were extended and sampled in recent months, broadening the zone. The first drill holes will test the main breccia structure, a parallel structure 400 metres to the west, and a magnetic anomaly 400 metres south of Trench 11. The initial program will include metallurgical testing and specific gravity measurements to support potential future resource estimation. The Paula target is located between one and two kilometres east of a paved road leading to Diego de Almagro, approximately 30 kilometres away. Gravel roads have been constructed to access the target area, and the topography is favorable for drilling. Golden Arrow operates Atakama through its 75%-owned Chilean subsidiary, New Golden Explorations Inc. Brian McEwen, P.Geol., VP Exploration and Development, is the Qualified Person for the project. GRG Resources is also evaluating other regional opportunities to add to the project and its portfolio. The company is affiliated with the Grosso Group and is actively exploring projects in Chile and Argentina. Nikolaos Cacos is President & CEO of GRG Resources.

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