Guanajuato Silver Provides Operations Update ~ Integration of New Mining Assets Advancing Ahead of Schedule ~
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Guanajuato Silver Provides Operations Update
~ Integration of New Mining Assets Advancing Ahead of Schedule ~
September 1, 2022 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company”
or “GSilver”) (TSXV:GSVR)(OTCQX:GSVRF) is pleased to provide an operations update detailing the
integration of the El Cubo mine and milling complex with the recently acquired Mexican mining assets
of Minera Mexicana El Rosario S.A. de C.V. (“MMR”) from Great Panther Mining Limited ( “Great
Panther”), comprising the Topia Mine in the State of Durango, and the San Ignacio Mine and the
Valenciana Mines Complex (“VMC”) in the state of Guanajuato.
James Anderson, Chairman and CEO of Guanajuato Silver, said, “ With mining operations well
underway at both Topia and San Ignacio, the integration of our newly acquired mines from Great
Panther is considerably ahead of schedule. Our ability to transition the San Ignacio Mine rapidly and
professionally from care & maintenance back to production is demonstrative of the technical acumen
of our Mexican operations teams.”
In August 2022, Guanajuato Silver acquired the Topia Mine, San Ignacio Mine, and VMC from Great
Panther (See Guanajuato Silver news release dated August 4, 2022 – GSilver Closes Acquisition of
Great Panther’s Mexican Mining Assets). T he San Ignacio Mine and the Valenciana Mines Complex
had been placed on care & maintenance in November 2021, due to a lack of tailings capacity.
EL CUBO MINE & MILL
El Cubo comprises two main mine areas - the Villalpando Mine area in the south and the Santa Cecilia
Mine area in the north; at Santa Cecilia the main NW Villalpando vein structure is often crosscut with
additional perpendicular (transverse) vein structures which frequently carry proportionally higher
gold content. Because of the increasing importance of the Santa Cecilia Mine area, the Company
decided to link the Villalpando and Santa Cecilia areas by way of a 150-metre tunnel and ramp (the
705 ramp) - (See Guanajuato Silver news release dated May 5, 2022 - GSilver Drills 2,988 GPT AgEq
Over 0.35m Estimated True Width at El Cubo). T his work has now been completed, thereby reducing
the total haulage distance to only 2.5km from 7.2km. The reduction of the haulage distance has made
an immediate positive impact on project economics in terms of reduced fuel costs, reduced road
maintenance, and reduced tire wear. Furthermore, the construction of the access tunnel has opened-
up new higher-grade stope areas that were largely inaccessible to previous operators.
The Company is pleased to report that these and other operational improvements increased
production at El Cubo in July to 144,000 silver equivalent ounces, an increase of 23% over June’s
production. The Company expects that the August 4, 2022 acquisition of Great Panther’s Mexican
assets will further boost production materially on a go-forward basis.
SAN IGNACIO
The San Ignacio Mine had operated continuously for 10 years prior to being placed on care and
maintenance in November 2021 as discussed above; high-grade epithermal mineralization exists
within a quartz vein system named ‘La Luz’, located parallel to and approximated 5km west of the
Veta Madre system. The Company confirms that within just four days of the close of the Great Panther
acquisition, previously mined material from San Ignacio was delivered to El Cubo for processing.
Furthermore, the mining of new material at San Ignacio began just seven days after closing the
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acquisition. Mineralized material from San Ignacio is being transported directly to El Cubo for
processing and is expected to add approximately 5,000 to 6,000 tonnes of material per month to the
El Cubo processing circuit for the remainder of 2022. It should be noted that San Ignacio vein material
has previously been processed successfully at the El Cubo mill (See Guanajuato Silver news release
dated January 6, 2022 – GSilver Begins Processing Third-Party Silver and Gold Mineralized Material).
Under the previous operator, mineralized material from San Ignacio was transported approximately
20km to the Cata mill at VMC. Because the route from San Ignacio to El Cubo incorporates the local
highway system, the current haulage time is only about 15 minutes longer than using the previous
arrangement.
VALENCIANA MINES COMPLEX - “VMC”
Mined since the 1500s and comprising an immense strike length of over 4.2km along the world-class
Veta Madre or ‘Mother Vein’, the Valenciana Mines Complex (“VMC”) includes five mines
(Guanajuatito, Valenciana, Cata, Rayas-Los Pozos, and Promontorio) that over the centuries have
merged to form one large continuously interconnected mine. Historically, Valenciana was one of the
most significant silver mines in the world; at times near the end of the 18th century the mine accounted
for nearly 40% of world silver production. Under the previous operator, mineralized material from
VMC was processed at the Cata mill, which remains in good working order and has a nameplate
capacity of 36,000 tonnes per month.
The Company’s engineering and geological teams are currently reviewing opportunities to restart
mining at VMC as well as processing at Cata. GSilver anticipates that mining will recommence at VMC
before the end of 2022 with mineralized material being sent to El Cubo for processing. The Company
expects to restart the Cata mill in early 2023.
TOPIA MI NE
Located in north-eastern Durango, the Topia Mine was operated continuously since 2004 by Great
Panther. Topia is a polymetallic mine that produces silver, lead, zinc and gold through a 7,500 tonnes
per month flotation processing facility. Since the completion of the MMR acquisition, the Company
reports it has sold 99.2 dry tonnes of lead-silver-gold concentrate to a division of Samsung Electronics
Co Ltd., and 97.7 dry tonnes of zinc-silver concentrate to a division of Ocean Partners Ltd. (U.K.).
Commenting on Topia, Guanajuato Silver President Ramon Da vila said, “I am very excited; as the
former Economic Minister for the State of Durango, based on my previous operating experience in
the state, and after reviewing our current mining operations, I believe we have an opportunity to
incorporate a hub & spoke mining strategy at Topia similar to the one we are now employing
successfully with our Guanajuato assets.”
Technical Information
Hernan Dorado Smith, 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.
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About Guanajuato Silver
GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines
near the city of Guanajuato, Mexico, which has an established 480-year mining history. With five
mines and three processing facilities, the Company is one of the fastest growing silver producers in
Mexico.
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.
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 Company’s ability to restart mining operations at San
Ignacio and VMC, successfully integrate mineralized material mined from San Ignacio and VMC into the
Company’s current processing operations at El Cubo, and the anticipated increased tonnage, timing and
economic advantages associated therewith, the increasing importance of the Santa Cecilia mine area at El Cubo
and the anticipated impact on project economics and ability to access new higher-grade stope areas resulting
from the linkage by tunnel of such area with the Villalpando mine area, the current and projected mined output
from the Company’s existing El Cubo and El Pinguico mines and newly acquired San Ignacio, Valenciana and Topia
mines, and GSilver’s anticipated performance for the balance of 2022, the ability of the Company to increase
production, tonnage and silver and gold grades, improve metallurgical recovery rates, increase revenues, and
reduce production costs (including AISC) consistent with the Company’s expectations and production model, the
Company’s ability to improve efficiency, output and successfully adopt a hub & spoke mining strategy at the
Topia mine as currently planned an d the timing thereof, 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 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: our mineral resource estimates at El Cubo and El
Pinguico and estimates of mineralized material at San Ignacio, VMC and Topia 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 successfully integrate production from San Ignacio and VMC into the Company’s
existing mining and milling operations at El Cubo and the availability of excess processing and tailings capacity at
El Cubo to accommodate same; the Company’s ability to secure additional sources of mineralized material for
processing, 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
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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 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, 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 recovery rates, improve grades and reduce costs at El Cubo 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 d ecision to process mineralized material from El Cubo, El Pinguico and its newly
acquired San Ignacio, Valenciana and Topia 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 m aterial 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 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 rising 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, 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 interim
financial statements and accompanying MD&A for the three month period ended June 30, 2022. 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.