Guanajuato Silver Commences Processing 3rd Party Gold and Silver at El Cubo
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Guanajuato Silver Commences Processing 3rd Party Gold and Silver at El Cubo
January 17, 2024 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company” or “GSilver”)
(TSXV:GSVR)()(OTCQX:GSVRF) is pleased to announce commencement of a relationship with a Mexican silver
mining company to process a portion of its surface inventory of mineralized material at Guanajuato Silver’s
wholly owned El Cubo mines complex located in Guanajuato, Mexico.
Guanajuato Silver’s Chairman & CEO, James Anderson said, “We are excited to have reached this agreement
which will utilize a considerable amount of the excess capacity that exists at our El Cubo mill. We believe both
parties will mutually benefit from this agreement, as we collectively look to expand silver production in the
Guanajuato area through the processing of low-cost and readily available material. With additional unutilized
capacity still available at El Cubo, we continue to pursue similar business agreements with other mining groups
in the area.”
This material has been demonstrated compatible with the El Cubo processing circuit through comprehensive
metallurgical testing; the first silver and gold concentrates from this processing agreement are expected to be
generated prior to the end of January 2024.
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 Complex, 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. In addition, 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.
Technical Information
Hernan Dorado Smith (Qualified Professional – MMSA), a director and officer of GSilver and a "qualified person"
as defined by National Instrument 43 -101, Standards of Disclosure for Mineral Projects, has approved the
scientific and technical information contained in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
"James Anderson"
Chairman and CEO
For further information regarding Guanajuato Silver Company Ltd., please contact:
JJ Jennex, Gerente de Comunicaciones, T: 604 723 1433
Gsilver.com
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.
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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, the benefit from the agreement announced in this press release, expansion of
silver production in the Guanajuato area through the processing of low-cost and readily available material, unutilized
capacity still available at El Cubo, the pursuit of similar business agreements with other mining groups in the area, the
amount of tonnes of additional material to be processed at the El Cubo mill on a monthly basis, the expected timeline to
generate the first silver and gold concentrates from this processing agreement, and the Company’s status as one of the
fastest growing silver producers in Mexico.
Such fo rward -looking statements and information reflect management's current beliefs and expectations 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: our estimates of mineral resources and other mineralized material at El Cubo and
the Company’s other mining projects in Guanajuato, Mexico and the assumptions upon which they are based, including
geotechnical and metallurgical characteristics of rock 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 the 2023 Preliminary Economic Assessment on El Cubo (“2023 PEA”); the ability
of the Company to ramp up processing of mineral resources and material at El Cubo and the Company’s other mining projects
at the projected rates and source sufficient high grade mineralized material to fill such processing capacity; 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 co st estimates;
operating costs; 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 a re 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 GSilver to differ materially from those expected including, but not limited to, market conditions, availability
of financing, future prices of gold, silver and other metals, currency rate fluctuations, high inflation and interest rates, actual
results of production, exploration and development activities, actual resource grades and recoveries of silver, gold and other
metals, availability of third party mineralized material for processing, unanticipated geological or structural formations and
characteristics, geopolitical conflicts including wars, environmental risks, 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 successfully discover and mine sufficient
quantities of high grade mineral resources or other material at El Cubo, VMC, San Ignacio and Topia (including at Topia
buying and processing ore from contractors) for processing at its existing mills to increase production, tonnage milled and
recovery rates of gold, silver, and other metals i n the amounts, grades, recoveries, costs and timetable anticipated. In
addition, GSilver’s d ecision to process mineral resources and other material from El Cubo, VMC, San Ignacio 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
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 production of silver,
gold and other metals or the 2023 PEA 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 the continued spread and severity of COVID-19, the ongoing
war in Ukraine and high inflation and interest rates and the impact they will h ave on the Company's operations, supply
chains, ability to access mining projects or procure equipment, supplies, 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.sedar.com 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
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circumstances save as required by law.