"Although early stage, the Phase 1 drill campaign has confirmed that Yarely [in neighbouring Sinaloa] has the potential to be a diversified mineralized camp with district scale prospects," he said.

Within the Yarely project area drilling had revealed a "blind porphyry system" on the back of earlier geophysical survey work at Loretos, while a "high grade silver-gold vein field and ore grade zinc-gold skarn-hosted mineralization have been identified at Central and Lucy".

"The geological and geophysical work to date suggests Yarely could host several porphyry type targets which would be the first known in this region of the country.

"We continue to be excited as Sundae, Yazmin and Los Mimbres are being advanced to the drill stage. As well, ongoing regional reconnaissance has generated new prospective targets in the camp".

Yarely, about 25km from Chesapeake's proposed Metates plant site, is seen as a potential supplementary source of feedstock for a large-scale production centre at Metates.

Reifel said systematic exploration at Yarely had revealed skarns, veins, porphyry/disseminated zones and stockwork/breccias. The "district-scale prospects" at Central, Loretos, Lucy, Yasmin, Sundae and Los Mimbres were all within a 20km-by-25km area.

Despite "delays in drilling and reporting … caused by permitting issues surrounding the political situation in Mexico during this current election year", early results underlined the near-surface and deeper potential of multiple geological horizons in the area.

"Yarely is unique with several different deposit types in one camp hosting a mix of district scale precious and base metal mineralization," Reifel said.

"Joint venture interest has been expressed in specific prospects.

"Chesapeake will continue to systematically explore and advance multiple targets in 2018 for the next phase of drilling."

The company currently has about C$19 million in the bank.

It continues to weigh development options for 100%-owned Metates and its NI 43-101 proven and probable reserves of 18.5 million ounces of gold, 526Moz of silver and 4.2 billion pounds of zinc.

Its share price had dipped about 18% this month, capitalising the company Thursday at C$91.1 million.