Guanajuato Silver Drills 6,981 g/t AgEq at San Ignacio and Prepares to Expand Production
Guanajuato Silver Drills 6,981 g/t AgEq at San Ignacio and Prepares to Expand Production
February 23, 2023 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company” or
“GSilver”) (TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased to provide drill results from the Company’s
wholly owned San Ignacio mine (“San Ignacio”) in Guanajuato, Mexico.
James Anderson, Chairman and CEO said, “SI22-006 is the best drill hole the Company has drilled at any of its
mines recently acquired from Great Panther Mining in August of 2022. With almost five meters of true width
intersecting 1,219 g/t AgEq, which includes 0.42m true width of 6,981 g/t AgEq, this may represent a game
changing result for the mine. The primary focus of our most recent San Ignacio drill program was to target the
Melladito vein system with the goal of extending silver and gold mineralization in the south and north areas of
the mine. This outstanding result will be followed up with additional drill holes attempting to follow the down
dip extension of the vein within the Company’s 2023 drill campaign. In parallel, we are in the midst of driving a
400-metre access ramp from Melladito to the analogous Purisima vein, which offers the potential for expanded
production at San Ignacio.”
The Melladito vein dips to the east, with a true width ranging from 0.25 m to over 19 m; the vein has been
delineated to a depth of 350 metres but retains deeper potential. Additionally, the vein often returns
proportionately higher gold with lesser silver values. Current production from San Ignacio comes mostly from
the Melladito and the Nombre de Dios vein systems.
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Note: All silver equivalent (AgEq) values are calculated based on a long-term gold to silver price ratio of 80:1. Abbreviations
used in this news release include the following: g/t: grams per tonne; Au: gold; Ag: silver; m: metre, AgEq: silver equivalent.
New Ramp to Purisima Vein
As part of the Company’s 2023 development program, GSilver is currently developing Ramp 430, which will
allow for development and production from the Purisima vein located approximately 400 metres to the east of
the Melladito vein; approximately 40% of Ramp 430 has been completed (see Figure 1 below). The Purisima
vein mirrors the Melladito vein system and has the potential to considerably impact production as well as overall
mine life once the vein is encountered. The new ramp is expected to be finished within six months, which will
facilitate production of mineralized material from San Ignacio at an expanded rate of over 12,000 tonnes per
month.
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Figure 1 – Cross Section of the Ramp 430 Project
Figure 2 – Long Section Melladito Vein – Drillhole SI22-006 Highlighted
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About the San Ignacio Mine
Mineralization at San Ignacio is consistent with high-grade epithermal vein systems that are common within the
Guanajuato Mining District; silver and gold mineralization is contained within vein stockworks and breccias. To
date, eighteen veins have been defined at San Ignacio. Once mined, mineralization is transported using 20-tonne
trucks approximately 20km for processing at the Company’s wholly-owned Cata m ill at the Valenciana Mines
Complex.
New Resource Calculation Initiated
The Company also confirms that APEX Geoscience Ltd. of Edmonton, Alberta, Canada (“Apex”), has been engaged
to provide a current mineral resource estimate for San Ignacio; the new mineral calculation is expected to be
completed by Q3, 2023. A historical resource estimate at San Ignacio was completed by Robert F. Brown and
Mohammad Noupour on behalf of Great Panther Mining Limited effective July 31, 2021 as part of a “NI 43-101
Mineral Resource U pdate Technical Report on the Guanajuato Mine Complex, Guanaju ato and San Ignacio
Operations, Guanajuato State, Mexico” dated February 28, 2022 (the ‘Great Panther Report”) and is summarized
below:
Notes:
1. Cut-offs were based on the marginal operating costs per mining area being USD$127.40/tonne for San Ignacio.
2. Block model grades converted to USD$ value using plant recoveries of 87.15% Ag, 86.70% Au, and net smelter terms
negotiated for concentrates.
3. Rock Density for San Ignacio is 2.64t/m³,
4. Totals may not agree due to rounding.
5. Grades in metric units.
6. Contained silver and gold in troy ounces.
7. Minimum true width 0.5m.
8. Metal Prices USD$20.00/oz silver, and USD$1,650.00/oz gold.
9. AgEq oz were calculated using 85:1 Ag:Au ratio.
10. Inferred Mineral Resources have a great amount of uncertainty as to their existence and as to whether they can be
mined legally or economically. It cannot be assumed that all or part of the Inferred Mineral Resources will ever be
upgraded to a higher category.
11. Mineral Resources that are not Mineral Reserves have no demonstrated economic viability. The potential quantity
and grade is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is
uncertain if further exploration will result in the target being delineated as a Mineral Resource.
GSilver is not treating this historical estimate as current mineral resources, as a qualified person on behalf of
GSilver has not done sufficient work to classify these estimates as current mineral resources. A thorough review
by Apex of all historic data as well as additional production (mining depletion), drilling and underground sampling
completed at San Ignacio since July 31, 2021, along with additional exploration and validation work to confirm
results and estimation parameters, will be required in order to produce a current mineral resource estimate for
San Ignacio. See the Great Panther Report, a copy of which is available for review under Great Panther’s profile
on SEDAR, for details of the key assumptions, parameters, and methods used to prepare the above historical
resource estimate.
Sampling and quality assurance/quality control
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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 Corporacion Quimica Platinum S.A de
C.V., Silao, Guanajuato, Mexico. To validate our assay results and our preparation procedures, GSilver sends
additional random samples representing approximately 20% of all analytical samples to Bureau Veritas in
Hermosillo, Sonora, Mexico. Bureau Veritas is an ISO/IEC (International Organization for
Standardization/International Electrotechnical Commission) geo -analytical laboratory and is independent of
GSilver and its "qualified person". In order to further validate our assay results and our preparation procedures
GSilver sent additional random samples representing approximately 10% of all analytical samples to SGS Mexico,
S.A de C.V, Durango, Mexico. SGS is also an ISO/IEC geo-analytical laboratory and is independent of GSilver and
its "qualified person". Core samples were subject to crushing at a minimum of 70 per cent passing two
millimeters, followed by pulverizing of a 250-gram split to 85 per cent 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 indus try-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. GSilver detected no 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.
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 M ine, 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.
Technical Information
Reynaldo Rivera, VP of Exploration of GSilver, has approved the scientific and technical information contained
in this news release. Mr. Rivera is a member of the Australasian Institute of Mining and Metallurgy (AusIMM -
Registration Number 220979) and a "qualified person" as defined by National Instrument 43-101, Standards of
Disclosure for Mineral Projects.
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 identification of the Melladito vein system as a gold and silver rich vein
system with the potential for deeper mineralization, the potential of the Purisima vein as an analogue to the Melladito vein
system with the ability to expand production at San Ignacio to more than 12,000 tonnes per month and extend the existing
mine life, the estimated timetable for completion of Ramp 430 to connect the Purisima and Melladito veins and the
anticipated increase in production resulting therefrom, the ability of the Company to quickly assess the deeper
mineralization and characteristics of the Melladito vein system and the timing and quantity of production therefrom, the
Company’s current and projected mined output from San Ignacio for 2023 and the Company’s status as one of the fasting
growing silver producers in Mexico, the ability of the Company to continue to increase production, tonnage and recoveries
of mineralized material at San Ignacio, Valenciana, El Cubo and Topia in accordance with its objectives and timetable
including increasing silver and gold grades, improving metallurgical r ecovery rates, increasing revenues, and reducing
production costs (including AISC) consistent with the Company’s expectations and production model, the Company’s future
development and production activities; estimates of mineral resources and mineralized material at the Company’s mining
projects and the accessibility, attractiveness, mineral content and metallurgical characteristics thereof; the opportunities
for future exploration, development and production at the Company’s mines including the Melladito, Nombre de Dios and
Purisima veins at San Ignacio and the proposed exploration, development and production programs therefor and the timing
and costs thereof; and the success related to any future exploration, development and/or production programs.
Such fo rward -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
the Melladito, Nombre de Dios and Purisima veins, 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 s afety 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, currency rate fluctuations, rising inflation and interest rates, geopolitical conflicts including wars,
actual results of exploration, development and production activities, actual resource grades and recoveries of silver, gold
and other metals from the Melladito, Nombre de Dios and Purisima veins or otherwise, 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 San Ignacio to process mineralized materials to produce silver, gold
and other concentrates in the amounts, grades, recoveries, costs and timetable anticipated. In a ddition, GSilver’s d ecision
to process mineralized material from San Ignacio including the Melladito and Nombre de Dios vein systems and newly
discovered Purisima vein 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 the Melladito, Nombre de Dios and Purisima veins
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
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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 rising 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.sedar.com including the Company’s annual information form for the fiscal year ended December 31, 2021. 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.