Guanajuato Silver Reports Best Ever Quarterly Production ~ Q1 Silver-Equivalent Production Up 16.1% Over Previous Quarter ~
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Guanajuato Silver Reports Best Ever Quarterly Production
~ Q1 Silver-Equivalent Production Up 16.1% Over Previous Quarter ~
April 5, 2024 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “ Company” or “ GSilver”)
(TSXV:GSVR)(OTCQX:GSVRF) is pleased to announce consolidated production results for the three months ended
March 31, 2024. Production results are generated from the Company’s wholly owned El Cubo Mines Complex (“El
Cubo”), Valenciana Mines Complex (“VMC”), and San Ignacio Mine (“San Ignacio”) in Guanajuato, Mexico, the El
Horcon Mine (“Horcon”) in Jalisco, Mexico, and the Topia Mine (“Topia”) in Durango, Mexico.
Q1 2024 Production Highlights
• Production during the quarter of 987,312 silver-equivalent ounces (“AgEq*”) is the best quarter in the
Company’s history since production began at the Company’s El Cubo mines complex in Q4 2021;
production is derived from 428,279 ounces of silver; 5,384 ounces of gold; 879,242 pounds of lead; and
922,927 pounds of zinc.
• Tonnes milled increased by 20.1% over the previous quarter; a total of 165,079 tonnes were processed
among GSilver’s three production facilities.
• Average silver and gold recoveries increased to 88.6% and 89.2% respectively as compared to 84.5%
silver recovery and 88.8% gold recovery in Q4, 2023.
James Anderson, Chairman and CEO, said, “Q1 generated our best production performance to date and continues
the trend of demonstrable quarter-over-quarter increases in precious metals production. In 2023, we made
significant capex investments aimed at improving efficiencies across all of our producing assets; the impact from
these improvements is now being realized as evidenced by our strong start to the year. We look forward to
building upon our success as we continue to grow Guanajuato Silver into a prominent producer of silver and gold.”
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Silver equivalents are calculated using an 88.72 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q1 2024; silver
equivalents are calculated using an 85.10:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q4 2023; silver equivalents
are calculated at 80:1 for Q4, 2021.
Q1 2024 Production Demonstrates Significant Improvements Over Previous Quarter
Total tonnes milled was up 20.1% over the previous quarter; the increase in total milled tonnage was partly due
to the processing of mineralized material from the Company’s El Horcon mine and from the processing of 3rd party
gold and silver (See G Silver news release dated January 17, 2024 – Guanajuato Silver Commences Processing 3rd
Party Gold and Silver at El Cubo). D uring the quarter, 117,043 silver-equivalent ounces were generated through
the processing of 3rd party mineralized material, and 59,914 silver-equivalent ounces were generated from the
processing of stockpiled material at Horcon.
Gold production of 5,384 ounces in Q 1 denotes a 22.5% increase from the previous quarter; t his increase was
primarily the result of increased tonnage over the quarter coupled with strong gold recoveries of 89.2%.
Silver production of 428,279 ounces in Q1 was an 8.4% increase from the previous quarter; silver production for
the quarter generated 43.3% of total AgEq production.
At Topia, lead production of 879,242 pounds in Q1 was up 5% over the previous quarter; zinc production declined
4% to 922,297 pounds. During Q1, 2024, Topia generated 2 88,579 silver-equivalent ounces, which represented
29.2% of total production. Topia is the only polymetallic mine within Guanajuato Silver’s asset portfolio; all of the
Company’s other mines are pure precious metals producers.
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1. Silver equivalents are calculated using an 88.72 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q1 2024; silver
equivalents are calculated using an 85.10:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q4 2023.
2. All figures are rounded to reflect the relative accuracy of the estimates. Minor discrepancies may occur due to rounding
to appropriate significant figures.
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 Fellow 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. Mr. Rivera has verified the data that supports the technical information
disclosed in this press release by reviewing production reports from each of the Company’s mining operations.
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.
ON BEHALF OF THE BOARD OF DIRECTORS
"James Anderson"
Chairman and CEO
Q4 2023
TOTAL JAN FEB MARCH TOTAL
Tonnes Mined 137,497 58,833 53,893 54,561 167,287
Tonnes Milled 137,339 56,950 51,228 56, 901 165,079
Average Ag Recovery (%) 84.5% 88.2% 88.3% 89.1% 88.6%
Average Au Recovery (%) 88.8% 88.7% 89.5% 89.3% 89.2%
Average Pb Recovery (%) 91.7% 89.9% 90.7% 91.5% 90.7%
Average Zn Recovery (%) 82.5% 81.4% 83.5% 83.8% 83.0%
Silver Ounces Produced 394,971 141,878 131,404 154,997 428,279
Gold ounces Produced 4,395 1,843 1,846 1,694 5,384
Lead Pounds Produced 837,230 279,727 272,712 326,803 879,242
Zinc Pounds Produced 960,206 269,276 303,800 349,220 922,297
Total AgEq Oz Produced 850,214 329,958 322,278 335,076 987,312
Q1 2024
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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
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, growth of the Company’s operating presence within Mexico, improvement in
overall efficiencies at its Mexican mining operations, the addition of a new source of mineralized material from El Horcon,
the impact of significant capex investments aimed at improving efficiencies across all of producing assets, the growth of
Guanajuato Silver into a prominent producer of silver and gold, and the Company’s status as one of the fastest growing
silver producers in Mexico.
Such f orward -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, VMC, San
Ignacio 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 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 d isruptions; 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 ar e 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
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mineralized material from El Cubo, VMC, San Ignacio, Topia 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 r esources 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 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 have on the Company's operations, supply chains,
ability to ac cess 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, 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.