Guanajuato Silver Provides Operations Update
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Guanajuato Silver Provides Operations Update
August 27, 2024 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company” or “GSilver”)
(TSXV:GSVR)(OTCQX:GSVRF) is pleased to provide an operations update for several projects at or near the
Company’s wholly owned mines, including the Topia Mine (“Topia”) in Durango, Mexico, the San Ignacio Mine
(“San Ignacio”) in Guanajuato, Mexico, and the El Horcon Mine project (“Horcon”) in Jalisco, Mexico.
James Anderson, Chairman and CEO, said, “As our consolidation of the Guanajuato Mining Camp continues in step
with the ongoing upgrading at our four producing precious metals mines, we would like to provide our investors
with an update on the latest initiatives we are implementing as we continue our rapid path of growing Guanajuato
Silver into a mid-tier silver producer.”
At the Topia Mine in Durango, the commissioning of a new filter system for silver-gold-lead concentrates has
been successfully completed. This new filter system is one of two that will be installed at the mine site; the second
concentrator will be for silver-zinc concentrate production. Topia produces concentrates containing silver, gold,
lead and zinc through a processing facility that comprises a 260-tonnes-per-day flotation plant; the new
concentrate filters will contribute to helping the plant achieve, and potentially exceed, full production capacity,
as well as potentially producing higher grade concentrates.
James Anderson commented, “We anticipate that when both filters are activated, the result will be a 2% additional
increase in both base and precious metal recoveries derived from minimizing wastage due to a lack of filtering
capacity. The Company anticipates a rapid pay-back period of this project’s roughly US$500,000 expenditure.”
Image 1: New Lead Filter Press at Topia
At the San Ignacio Mine, located approximately 20km from the Company’s Cata Processing facility, a new ore
sorter, which arrived on site in July, is rapidly approaching the commissioning phase. The NUCTECH MC2000NF
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Intelligent Mineral Sorting System provides high-tech sorting accuracy, large processing capacity, environmental
friendliness, and high reliability through a system that utilizes X-ray and structured light imaging technology to
intelligently identify and then separate high-grade silver and gold material. The ore sorter is expected to improve
overall efficiencies at San Ignacio, raising the grade of transported material to the Cata mill. The San Ignacio mine
accounted for approximately 15% of total silver-equivalent production during Q2, 2024.
James Anderson, said, “Installation of San Ignacio’s ore sorter is nearly complete; we estimate that our new ore
sorter will provide significant monthly savings to operating costs, and generate an increase in silver-equivalent
ounces per annum through improved grade, reduced energy consumption, reduced haulage charges, and
increased concentration production capacity.”
Image 2: Ore Sorter Install
At The Company’s Horcon Mine project, located in the state of Jalisco approximately 60km north-west of the
Company’s Cata processing facility in Guanajuato, the Company has recommenced the processing of surface
stockpile material. To date, over 28 ,000 tonnes of mineralized material has been processed, generating over
125,159* silver-equivalent ounces “AgEq” from mid-November 2023 to June of 2024. In July, the project paused
to allow for the further evaluation of additional stockpiles in the area; the processing of low-cost mineralised
material from Horcon recommenced in August and is expected to continue through the remainder of the year.
*28,455 tonnes grading 34g/t silver and 1.54g/t gold for 165g/t AgEq / AgEq calculated using an 85.18 ratio of silver to gold;
silver recovery was 64.4% and gold recovery was 86.3%.
Additionally, at Horcon the Company has completed an underground sampling program that has mapped and
surveyed over 5km of tunnels, adits, and old workings. The Company is now designing an underground drill
campaign intended to expand geological knowledge in advance of a decision to potentially restart commercial
underground operations at this satellite mine in the future.
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Image 3: Horcon surface sampling.
Acquired as part of the purchase of Great Panther’s Mexican assets (see GSilver’s news release dated August 4,
2022 – GSilver Closes Acquisition of Great Panther’s Mexican Mining Assets), the El Horcon mining concessions
cover 7,908 hectares comprising 17 contiguous mining concessions. The El Horcon mine is a past producer dating
back to the 16th century, and many underground workings, tunnels, and access points are known to exist. In 2017,
the previous operator established a historical inferred mineral resource that was prepared in accordance with
National Instrument 43-101 of 2.0 million silver-equivalent ounces (“AgEq”) (see notes to table for silver-
equivalent calculations) from 162,140 tonnes grading 3.44g/t gold, 76 g/t silver and 2.69% lead, and 3.79% zinc
based on 42 drill holes and 463 underground channel samples (see table and description below – the inferred
mineral resource is considered historical in nature).
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1. See NI43-101 Technical Report on the Guanajuato Mine Complex Claims and Mineral Resource
Estimations for the Guanajuato Mine, San Ignacio Mine and El Horcon and Santa Rosa Projects dated
February 20, 2017 with an effective date of August 31, 2016; prepared for Great Panther Silver Limited by
Robert Brown, P. Eng. Qualified Person & VP Exploration.
Notes:
1. US$110/tonne NSR Cut-off
2. Silver equivalent was calculated using a 70.6 to 1 ratio of silver to gold value.
3. Rock Density for all veins for Diamantillo is 2.77t/m³, San Guillermo 2.78t/m³, Diamantillo HW
is 2.62t/m³, Natividad 2.57t/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 1.5m
8. Metal Prices $18.00USD/oz silver, and $1,300USD/oz gold, and $0.80USD/lb lead.
9. Ag eq (g/t) and AgEq (oz) use only Au, Ag, and Pb values.
The El Horcon mineral resource estimate is a historical estimate and the reader is cautioned not to treat them, or
any part of them, as a current resource. A qualified person has not done sufficient work to classify the historical
estimate as current mineral resources or mineral reserves and the Company is not treating the historical estimate
as current mineral resources or mineral reserves. The mineral resource is taken from a Great Panther technical
report dated February 20, 2017. However, based on the assumptions, parameters and methods in the prior
technical report, as well as literature and data review the Company considers such estimate to be relevant and
reliable and provides an indication of the extent of mineralization identified by previous operators at the El Horcon
Mine. To verify the historical mineral resource estimate as a current mineral resource, a qualified person would
need to complete database validation, undertake a full review of estimation parameters and procedures, and
complete an updated mineral resource estimate and a NI 43-101 technical report incorporating additional
production, drilling, sampling and resaying of core completed at El Horcon since February 2017.
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. 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
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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.
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, ongoing upgrades at the four producing precious metals mines, the rapid path
in growing Guanajuato Silver into a mid-tier silver producer, the installation of a second concentrator at Topia, the
operating capacity of Topia, the excepted increase in base metal recoveries at Topia, the commissioning of the new ore
sorter at San Ignacio and its expected impacts, processing of mineralized material from El Horcon, expectations for a drill
campaign at El Horcon, 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 mineralized material at El Cubo and San
Ignacio 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 production
estimates; the ability of the Company to ramp up processing of mineralized material at Cata 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 cost estimates; 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 unpl anned 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, rising 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 mineralized material at El Cubo, VMC, San Ignacio and
Topia for processing at its existing mills to increase production, tonnage milled and recoveries rates of gold, silver, and
other metals in the amounts, grades, recoveries, costs and timetable anticipated. In addition, GSilver’s d ecision to process
mineralized material from El Cubo, VMC, San Ignacio, Topia, El Horcon and its other mines 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 production of silver, gold and
other metals will be realized. In addition, there are no assurances that the Company will meet its production forecasts or
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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 any resurgence of COVID-19, the ongoing war in Ukraine and conflict in Gaza
and higher 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, 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
annual information form for the year ended December 31, 2023. 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.