Guanajuato Silver Reports Increased Production in Q2 ~ 6th Consecutive Quarter of Record Production ~
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Guanajuato Silver Reports Increased Production in Q2
~ 6th Consecutive Quarter of Record Production ~
July 14, 2023 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “ Company” or “ GSilver”)
(TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased to announce consolidated production results for the three
months ended June 30, 2023. 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, and the Topia Mine (“Topia”) in Durango, Mexico.
Q2 2023 Production Highlights
• Record production during the quarter of 941,338 silver-equivalent ounces (“AgEq”) derived from 477,650
ounces of silver; 4,719 ounces of gold; 875,802 pounds of lead; and 897,258 pounds of zinc.
• The development of the El Condor Tunnel Project at the Topia mine has accessed the Argentina vein in
an area that previous operators had not reached; the new tunnel opens up the potential for additional
mineralized material that would sit in close proximity to the mill. The Argentina vein is the most important
producing vein system in the district and has been the primary structure mined at Topia for the past 40
years. The nearby Santa Cruz vein was also accessed with the El Condor t unnel, and both veins are
currently being drilled with results being collected and analyzed.
• Underground hydraulic fill tailings system successfully realized at the VMC; tailings material continues
to be deposited underground in one of the numerous voids that have been created over Valenciana’s 450-
year mining history.
• The Cata Shaft at VMC is now fully integrated into mining operations; for the month of June, over 5,000
tonnes of mineralized material were hoisted to surface through this shaft. The shaft, together with a new
underground locomotive system, has reduced haulage costs from the lower levels and reduced the wear
and tear on trucks, tires, and ramps.
• The recovery of high-grade mine pillars has now begun at VMC and this program of pillar extraction is
expected to grow over the coming months (see GSilver news release dated July 11, 2023 – “Guanajuato
Silver Targets High-Grade Pillars at the Valenciana Mines Complex”).
James Anderson, Chairman & CEO, said, “We are proud to announce our sixth consecutive quarter of increased
precious metals production; we expect this trend to continue as we head into the second half of the year. During
Q1 and Q2, we have implemented a number of efficiency upgrades that are now poised to generate significant
improvements to production grades and volumes, as we look to optimize mine production at all four of our
producing silver mines. Furthermore, we continue to pursue additional opportunities to grow our production
portfolio as we move towards becoming Mexico’s next mid-tier silver producer.”
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1. Silver equivalents are calculated using an 81.33:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q2 2023 and
an 83.78:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.06:1 (Ag/Zn) ratio for Q1 2023; respectively.
Q2 2023 Mine Operations Continues Trend of Overall Quarter over Quarter Production Increases:
• Consolidated mine production increased 2.5% in Q2 2023 to 166,171 tonnes mined, as compared to
162,116 tonnes mined in Q1 2023.
• Consolidated silver production increased 4% to 477,650 ounces in Q2 2023 compared to 458,803 ounces
in Q1 2023; similarly, consolidated gold production increased by 7% to 4,719 ounces over the same period;
however, overall lead and zinc production at Topia decreased by 3.4% and 22.2%, respectively, in Q2 2023
from Q1 2023 primarily due to a shift to targeting mineralized material that contained higher grades of
silver and gold versus base metals.
January February Ma rch Total April May June Total
Tonnes Mined 53,354 50,304 58,457 162,116 53,142 56,290 56,739 166,171
Tonnes Milled 52,333 48,208 59,641 160,182 52,745 55,664 55,385 163,793
Silver ounces Produced 157,582 146,720 154,501 458,803 165,188 171,145 141,317 477,650
Gold ounces produced 1,461 1,462 1,489 4,413 1,409 1,682 1,628 4,719
Lead pound produced 314,354 279,183 313,158 906,696 308,975 285,717 281,109 875,802
Zinc pound produced 341,176 411,996 399,966 1,153,138 336,082 285,929 275,247 897,258
Silver equivalent (Ag/Eq) ounces produced1 307,164 310,011 320,871 938,047 307,089 332,646 301,602 941,338
Average silver recovery (%) 85.4% 84. 2% 82.4% 83.9% 84.1% 86.6% 83.9% 84.9%
Average gold recovery (%) 82.6% 81.8% 79.4% 81.1% 80.9% 85.1% 83.2% 83.1%
Average lead recovery (%) 89.1% 83.5% 88.5% 87.1% 85.8% 88.6% 88.1% 87.4%
Average zinc recovery (%) 83.2% 83.0% 84.4% 83.5% 76.5% 80.3% 77.6% 78.1%
First Quarter 2023 Second Quarter 2023
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• Consolidated silver-equivalent production in Q2 2023 was higher by 3,291 ounces over the previous
quarter; this increase reflects the continuing ramp-up of operations at all of Guanajuato Silver’s mining
assets.
• Average recoveries for silver, gold and lead increased to 84.9%, 83.1% and 87.4% respectively in Q2 2023
from Q1 2023, although average recoveries for zinc dropped from 83.5% in Q1 2023 to 78.1% in Q2 2023
primarily due to lower grade throughput of zinc.
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 s 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
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 fu ture events or future
performance including, but not limited to, the projected continuing trend of quarterly increases in production and silver
equivalent ounce recoveries in 2023; the anticipated improvements to production grades and volumes resulting fro m
recently completed efficiency upgrades at VMC and Topia including the potential for additional mineralized material to
be derived from the Argentina and Santa Cruz veins in close proximity to the Topia mill via the newly completed El Condor
Tunnel, the anticipated reduction in haulage costs and improved operating efficiencies resulting from the integration of
the Cata shaft and new underground locomotive system into mining operations at VMC , the projected growth and
recovery of high grade material to be extracted from existing mine pillars at VMC, and the ability of the Company to
continue to deposit tailings material into underground voids at VMC to increase tailings capacity and reduce the
Company’s environmental footprint; the Company’s ability to maintain and improve overall operating efficiencies at it s
mining operations in the second half of 2023; and the Company’s status as one of the fastest growing silver producers in
Mexico including its ability to pursue additional opportunities to grow its production profile to become Mexico’s next mid-
tier silver producer.
Such forward-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
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uncertainties and contingencies. These assumptions include: our estimates of mineralized material at El Cubo, VMC, San
Ignacio and Topia and the as sumptions 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 its El Cubo
Cata and Topia mills 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;
improved efficiencies and benefits to be derived from the Company’s development and operational activities being
achieved as anticipated; the continued 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 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 G Silver 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, elevated 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 o r
structural formations and characteris tics, 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 recovery rates of gold, silver, and other
metals in the amounts, grades, recoveries, costs and timetable anticipated. In addition, GSilver ’s decision to process
mineralized material from El Cubo, VMC, San Ignacio and Topia is not based o n 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 Miner al 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 operational efficiencies and cash flow 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 pl anned. There is also uncertainty about the continued spread and severity of COVID -19, the
ongoing war in Ukraine, elevated inflation and interest rates and the impact they will have on the Company's operations,
supply chains, ability to access mining proj ects 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, 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.