Guanajuato Silver Announces High Grade Gold Intercepts at Valenciana
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Guanajuato Silver Announces High Grade Gold Intercepts at Valenciana
July 31, 2025 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company” or “GSilver”)
(TSXV:GSVR)(OTCQX:GSVRF) is providing an update on exploration and development work at the
Company’s wholly-owned Valenciana Mines Complex (“VMC”) located in Guanajuato, Mexico.
Highlights
• High-grade veins and associated breccias have been intercepted at the Santa Margarita zone
including:
o 0.98 metres true width grading 16.7 g/t gold and 12 g/t silver for 1,432 g/t AgEq*
o 0.26 metres true width grading 45.3 g/t gold and 38 g/t silver for 3,886 g/t AgEq
• Drilling at Santa Margarita has demonstrated comparatively higher gold values than the
historical average seen at the Valenciana Mines Complex.
• These highly encouraging results will form the basis for a new mining block that will be
prepared for development in 2025.
James Anderson, Chairman & CEO, said, “ Valenciana’s 500-year mining history shows no sign of slowing
down; the latest drill program has generated solid results that positions the Santa Margarita area as a near-
term source of production grade material.”
During the first quarter of 2025, a total of approximately 475 metres of diamond drilling was completed in
the Santa Margarita and Maravillas areas at the Valenciana Mines Complex; the results of which are
presented below:
*(All AgEq calculations in this news release use a silver to gold ratio of 85:1; some AgEq figures may vary
slightly due to rounding)
Drilling of the Santa Margarita Vein occurred in the Veta Madre hanging wall, where results show
indications of an in-situ block of potentially economic material within the contact of the area of the Veta
Madre structure.
DRILLHOLE AZIMUTH/INCLINATION WIDTH TRUE
WIDTH Au Ag AgEq
# Degrees From(m) To (m) (m) (m) (g/t) (g/t) ( g/t)
USM25-001 221.52 / 40.6 54.55 54.95 0.4 0.35 0.3 139 164 M aravillas Breccia
UGSM25-001 275.55 / 66.2 0 0.35 0.35 0.35 1 .7 3 147 Santa Margarita Stockwork
UGSM25-002 167.23 / 64.3 0 1 1 0.87 3 .6 4 310 Santa Margarita Breccia
and 11.15 11.6 0.45 0.37 5.5 9 477 S anta Margarita Breccia
UGSM25-003 214.4 / 74.6 0 1 1 0.98 16. 7 12 1,432 Santa Margarita Breccia
UGSM25-004 215.61 / 72.0 4.15 4.9 0.75 0.68 2.9 5 249 S anta Margarita Splay
UGSM25-005 286.19 / 64.7 5.2 5.5 0.3 0.26 45.3 38 3, 886 Santa Margarita Vein
INTERSECTIONS Vein
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Figure 1 – Long section of eastern portion of the Valenciana Mines Complex highlighting the current drilling
location within the Santa Margarita area, and the location of UGM25-001 within the Maravillas area.
A drilling program was completed at the Maravillas zone which tested for new vein shoots ; this area of
VMC has historically seen very limited exploration. UGM25- 001, which targeted the Veta Madre ,
intersected a wide vein intercept with a true width of 7.06 metres. (See Guanajuato Silver news release
dated November 20, 2024 titled “ Guanajuato Silver Drills 3.19m of 492 g/t AgEq* at Valenciana Mines
Complex”). Results for UGM25-001 showed a zone of moderately mineralized material; additional drilling
in this area will look to expand the known vein footprint and seek to determine if other high-grade
mineralized shoots are located within this portion of the vein system.
Sampling and quality assurance/quality control
Guanajuato Silver adheres to thorough QA/ QC procedures and practices that exceed standard regulatory
requirements when managing the Company’s testing and sampling. Drill core was first reviewed by a
Company geologist, who identified and marked intervals for sampling. The marked sample intervals were
then cut in half with a diamond saw; half of the core was left in the core box and the other half was
removed, placed in plastic bags, sealed and labeled. Intervals and unique sample numbers are recorded on
the drill logs and the samples are sequenced with standards and blanks inserted according to a predefined
QA/QC procedure. The samples are maintained under security on site until they are shipped to the
analytical lab. The analytical work reported on herein was performed by Guanajuato Silver’s local
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laboratory, located at the Valenciana Mines Complex at Ex -Hacienda de Bustos in Guanajuato City. This
laboratory is owned and operated by the Company and is not independent. To validate the Company’s assay
results and preparation procedures, GSilver customarily sends additional random samples representing
approximately 20% of all analytical samples to one of two ISO certified labs: Quimico Platinum, located at
Silao, Guanajuato or Bureau Veritas located in Hermosillo, Sonora, Mexico. Both laboratories are certified
at the ISO/IEC (International Organization for Standardization/International Electrotechnical Commission)
geo-analytical laboratory and are independent of GSilver and its "qualified person". Core samples were
subject to crushing at a minimum of 70 % passing two millimeters, followed by pulverizing of a 250 -gram
split to 85% passing 75 microns. Gold determination was via standard atomic absorption (AA) finish 30 -
gram fire assay (FA) analysis, in addition to silver and 34 -element using fire assay and gravimetry
termination. Following industry-standard procedures, blank and standard samples were inserted into the
sample sequence and sent to the laboratory for analysis. Data verification of the analytical results included
a statistical analysis of the standards and blanks that must pass certain parameters for acceptance to ensure
accurate and verifiable results. As of the date of this press release, the Company has not yet received the
results of the random samples sent to the independent laboratory.
Qualified Person
William Gehlen, a Director of Guanajuato Silver, is a Certified Professional Geologist with the American
Institute of Professional Geologists (No. 10626), and a Qualified Person as defined by National Instrument
43-101, Standards of Disclosure for Mineral Projects.
Mr. Gehlen has reviewed and verified technical data disclosed in this news release and has not detected
any significant QA/QC issues during review of the data and is not aware of any sampling, recovery or
other factors that could materially affect the accuracy or reliability of the drilling data referred to herein.
The verification of data underlying the disclosed information includes reviewing compiled assay data; QA-
QC performance of blank samples, duplicates and certified reference materials; and grade calculation
formulas.
About Guanajuato Silver
GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines in
central Mexico. The Company produces silver and gold concentrates from the El Cubo Mine, Valenciana
Mines Complex, and the San Ignacio Mine; all three mines are located within the state of Guanajuato,
which has an established 480-year mining history. Additionally, the Company produces silver, gold, lead,
and zinc concentrates from the Topia mine in northwestern Durango. With four operating mines and three
processing facilities, Guanajuato Silver is one of the fastest growing silver producers in Mexico.
ON BEHALF OF THE BOARD OF DIRECTORS
"James Anderson"
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Chairman and CEO
For further information regarding Guanajuato Silver Company Ltd., please contact:
JJ Jennex, Gerente de Comunicaciones, T: 604 723 1433
GSilver.com
Guanajuato Silver Bullion Store
Please visit our Bullion Store, where Guanajuato Silver coins and bars can be purchased.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains certain forward- looking statements and information, which relate to future
events or future performance including, but not limited to, GSilver’s growth, the restart of development
work at Pinguico, drifting along the mineralized San Jose vein structure towards the El Pinguico
underground stockpile is expected to start in Q3, that the underground stockpile represents a significant
tonnage of potentially low-cost mineralized material, that development work is is expected to contribute
to silver and gold production totals; thereby, partially offsetting the costs of the development , further
exploration at Pinguico and GSilver’s status as one of the fasting growing silver mining Company in Mexico.
Such forward-looking statements and information reflect management's current beliefs and are based on
information currently available to and assumptions made by the Company; which assumptions, while
considered reasonable by the Company, are inherently subject to significant operational, business,
economic and regulatory uncertainties and contingencies. These assumptions include: the potential
quantity, grade and metal content of the mineralized material at El Cubo and San Ignacio, the geotechnical
and metallurgical characteristics of such material conforming to sampled results and metallurgical
performance; available tonnage of mineralized material to be mined and processed; resource grades and
recoveries; assumptions and discount rates being appropriately applied to production estimates; prices
for silver, gold and other metals remaining as estimated; currency exchange rates remaining as estimated;
availability of funds for the Company's projects and to satisfy current liabilities and obligations including
debt repayments; capital, decommissioning and reclamation estimates; prices for energy inputs, labour,
materials, supplies and services (including transportation) and inflation rates remaining as estimated; no
labour-related disruptions; no unplanned delays or interruptions in scheduled construction and
production; all necessary permits, licenses and regulatory approvals are received in a timely manner; and
the ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not
exhaustive.
Readers are cautioned that such forward-looking statements and information are neither promises nor
guarantees, and are subject to risks and uncertainties that may cause future results, level of activity,
production levels, performance or achievements of G Silver to differ materially from those expected
including, but not limited to, market conditions, availability of financing, currency rate fluctuations, high
inflation and interest rates, geopolitical conflicts including wars, actual results of exploration,
development and production activities, actual grades and recoveries of silver, gold and other metals from
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the Company’s existing mines including El Cubo, Pinguico, San Ignacio, VMC and Topia, availability of third
party mineralized material for processing, unanticipated geological or structural formations and
characteristics, environmental risks, future prices of gold, silver and other metals, operating risks,
accidents, labor issues, equipment or personnel delays, delays in obtaining governmental or regulatory
approvals and permits, inadequate insurance, and other risks in the mining industry. There are no
assurances that GSilver will be able to continue to increase production, tonnage milled and recoveries
rates, improve grades and reduce costs at El Cubo, Pinguico, San Ignacio, VMC and/or Topia to process
mineralized materials to produce silver, gold and other concentrates in the amounts, grades, recoveries,
costs and timetable anticipated. In addition, GSilver’s decision to process mineralized material from El
Cubo, Pinguico, San Ignacio, VMC and Topia is not based on a feasibility study of mineral reserves
demonstrating economic and technical viability and therefore is subject to increased uncertainty and risk
of failure, both economically and technically. Mineral resources and mineralized material that are not
Mineral Reserves do not have demonstrated economic viability, are considered too speculative
geologically to have the economic considerations applied to them, and may be materially affected by
environmental, permitting, legal, title, socio-political, marketing, and other relevant issues. There are no
assurances that the Company's projected grades of gold and silver at El Cubo and San Ignacio and the
anticipated level of production therefrom will be realized. In addition, there are no assurances that the
Company will meet its production forecasts or generate the anticipated cash flows from operations to
satisfy its scheduled debt payments or other liabilities when due or meet financial covenants to which the
Company is subject or to fund its exploration programs and corporate initiatives as planned. There is also
uncertainty about impact of any future global pandemic, ongoing global conflicts, elevated inflation and
interest rates and the impact they will have on the Company's operations, supply chains, ability to access
mining projects or procure equipment, contractors and other personnel on a timely basis or at all and
economic activity in general. Accordingly, readers should not place undue reliance on forward-looking
statements or information. All forward-looking statements and information made in this news release are
qualified by these cautionary statements and those in our continuous disclosure filings available on
SEDAR+ at www.sedarplus.ca including the Company’s most recently filed annual information form. These
forward-looking statements and information are made as of the date hereof and the Company does not
assume any obligation to update or revise them to reflect new events or circumstances save as required
by law.