Guanajuato Silver Reports Increased Q4 2023 Production ~Silver-Equivalent Production Up 8% from Previous Quarter~
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Guanajuato Silver Reports Increased Q4 2023 Production
~Silver-Equivalent Production Up 8% from Previous Quarter~
January 9, 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 December 31, 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.
Q4 2023 Production Highlights
• Production during the quarter of 850,214 silver-equivalent ounces (“AgEq*”) is the 3rd best quarter in
the Company’s history, and is derived from 394,971 ounces of silver; 4,395 ounces of gold; 837,230
pounds of lead; and 960,206 pounds of zinc.
• Tonnes milled increased 3.6% from Q3 to Q4; during the fourth quarter; a total of 137,339 tonnes were
milled across GSilver’s four producing silver mines.
• Average silver and gold recoveries were 84.5% and 88.8% respectively for Q4 as compared to 83.3%
silver recovery and 81.6% gold recovery in Q3, 2023. Current metallurgical recoveries reflect historical all-
time highs.
• Gold production was up 27.7% over the previous quarter driven by higher gold grades, better recoveries,
and the inclusion of gold-rich material from the recently added production of the El Horcon mine.
• 2023 AgEq* Production of 3,516,685 ounces falls within revised guidance figures and represents a 63%
increase over the previous year.
*See footnote to table below for assumptions associated with the calculation of AgEq ounces.
James Anderson, Chairman and CEO, said, “Performance in the quarter demonstrated increasing improvement
driven by the successful implementation of a number of modifications designed to improve overall efficiencies at
our Mexican mining operations. The adjustment of various operating procedures, such as improving the stope
rotation at El Cubo, the shifting of our business model at Topia, and the addition of a new source of mineralized
material from El Horcon, have improved production figures at all of our assets. With the impact of significant capex
investments still to be realized, such as the dewatering at El Cubo targeting higher-grade mineralized zones
located in deeper areas of the mine, we expect to be able to resume the trend of quarter-over-quarter increases
in precious metals production throughout 2024.”
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1. 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, an
81.83:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q3 2023, an 82.91:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1
(Ag/Zn) ratio for YTD 2023 and an 82:78:1 (Ag/Au) ratio for YTD 2022.
2. All figures are rounded to reflect the relative accuracy of the estimates. Minor discrepancies may occur due to rounding
to appropriate significant figures.
Q4 Production Demonstrates significant Improvements Over Previous Quarter
Total tonnes mined during Q4 was 133,497 tonnes; this was down nominally from Q3 production of 134,865
tonnes primarily due to the change of business model at Topia; however, total tonnes milled during Q4 of 137,330
tonnes represents an increase of 3.7% over Q3. The increase in total milled tonnage during the quarter was partly
due to the commencement of the processing of mineralized material from the Company’s El Horcon mine located
approximately 60km northwest of the Valencian Mines Complex (See GSilver news release dated November 27,
2023 – “Guanajuato Silver Initiates Processing of Mineralized Material from El Horcon Mine”).
Gold production of 4,395 ounces in Q4 denotes a 27.7% increase from the previous quarter. This increase was the
result of higher gold grades in Q4, which were up over 15%, and superior gold recoveries of 8 8.8%, which is an
8.8% improvement over Q3.
At Topia, lead and zinc grades during the quarter improved dramatically compared to Q3; in Q4 lead grade
increased by 33.5% and zinc grades increased by 61.4%, though silver grades at Topia were somewhat lower. Lead
and zinc recoveries also increased compared to the previous quarter ; lead recovery in Q4 was up 2% to 91.7%
recovery - also to all-time highs, whereas zinc recovery increased by 5.8% to 82.5% recovery. Within GSilver’s mine
portfolio, Topia is the only polymetallic mine; all the Company’s other mines are pure precious metals producers.
Total October November December Total
Tonnes Mined 134,865 42,382 46,141 44,974 133,497
Tonnes Milled 132,484 40,610 46,846 49,883 137,339
Silver ounces Produced 425,488 113,298 138,208 143,465 394,971
Gold ounces produced 3,441 1,192 1,500 1,702 4,395
Lead pound produced 935,738 262,851 303,777 270,601 837,230
Zinc pound produced 857,660 268,732 352,560 338,914 960,206
Silver equivalent (Ag/Eq) ounces produced1 787,086 239,410 295,284 315,521 850,214
Average silver recovery (%) 83.3% 83.5% 84.2% 85.6% 84.5%
Average gold recovery (%) 81.6% 85.2% 90.0% 90.6% 88.8%
Average lead recovery (%) 89.8% 92.7% 90.8% 91.7% 91.7%
Average zinc recovery (%) 77.9% 81.0% 82.2% 84.3% 82.5%
Q3 2023 Q4 2023
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*See footnote to table above for assumptions associated with the calculation of AgEq ounces.
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.
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
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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, 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 still to be realized, such as the dewatering at El Cubo targeting higher-grade
mineralized zones located in deeper areas of the mine, the resumption of the trend of quarter-over-quarter increases in
precious metals production throughout 2024, and the Company’s status as one of the fastest growing silver producers in
Mexico.
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
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 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, 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 decision to process
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
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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 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 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, 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.