~ Ag and Au Concentrate Sales Accelerate for GSilver ~ ~ Company Expands Private Placement ~
TSX-V: GSVR OTCQX: GSVRF
~ Ag and Au Concentrate Sales Accelerate for GSilver ~
~ Company Expands Private Placement ~
November 29, 2021 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company”
or “GSilver”) (TSXV:GSVR)(OTCQX:GSVRF) is pleased to provide a production update on the
continuing ramp-up at its 100% owned El Cubo silver and gold mine in Guanajuato, Mexico.
Concentrate Sales:
On November 15, 2021, the Company received provisional proceeds of approximately US$750,000 from
the sale of a second delivery of precious metals concentrate from El Cubo. This second shipment consisted
of approximately 90 tonnes of bulk silver and gold concentrate grading approximately 220 ounces per
tonne silver and 2.2 ounces per tonne gold; the Company continues to ramp up both in terms of tonnes
processed and head-grade. Additionally, the Company has now delivered and invoiced approximately 175
additional tonnes of concentrate at similar grades and anticipates receiving a third provisional payment of
approximately US$1,300,000 on or about Dec. 3, 2021.
James Anderson, Chairman and CEO, said, “As Mexico’s newest precious metals producer, we continue
to advance towards the successful completion of this ramp-up stage at El Cubo. Because of the technical
excellence and deep commitment of our Mexican operations team, we remain ahead of our planned
production schedule, and our goal of becoming EBITA positive in Q1 remains on-track.”
Mine Production:
Since October 15, 2021, the Company has mined mineralized material at the rate of approximately 450
tonnes per day from the El Cubo mine. For the week ending November 21, 2021, the Company averaged
950 tonnes per day while combining mining from El Cubo and deliveries from the El Pinguico stockpile,
showing GSilver’s ability and flexibility to accelerate production as desired and as warranted. The current
mined output from El Cubo remains on target with the Company’s ramp-up schedule.
The El Cubo processing complex is currently operating at approximately 1,000 tonnes per day and the
Company expects the plant to operate for 22 to 24 days per month, with 6 to 8 days per month of downtime
for further refurbishment and mill maintenance, for an average monthly operating rate of 22,500 tonnes
for the next 6 months.
Recoveries:
Since the recommencement of production, silver recoveries have averaged approximately 85%; this is
approximately 99% of the recovery target rate and represents a remarkable achievement coming so soon
after the re-start. Gold recoveries are also improving; recoveries have averaged approximately 74%, which
is approximately 84% of the targeted historical recovery rate. GSilver has implemented and continues to
implement several procedures to boost gold recoveries and is confident that gold recoveries will continue
to increase to more than 80% in the near future.
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Private Placement:
GSilver also announces that due to increased demand the Company has expanded the size of its non-brokered private
placement financing announced November 18, 2021 (the "Private Placement"). Subject to acceptance of the TSX
Venture Exchange, the Private Placement will now consist of a total of 16,000,000 units ("Units") at a price of $0.55
per Unit for gross proceeds of $8,800,000. Each Unit will consist of one common share of the Company and one
half (1/2) of a common share purchase warrant (each whole warrant a "Warrant"); with each Warrant entitling the
holder to purchase an additional common share of the Company at a price of $0.75 within two years of closing,
subject to acceleration in certain events. All other terms of the Private Placement as announced on November 18,
2021 remain the same with an initial closing of the Private Placement planned for tomorrow, November 30, 2021.
About Guanajuato Silver Co. Ltd.:
GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines near the city of
Guanajuato, Mexico. The Company is currently producing silver and gold at its 100% owned El Cubo Mine, while
simultaneously advancing the nearby El Pinguico Mine to restart. Both projects are located within 11km of the city
of Guanajuato, which has an established 480-year mining history.
ON BEHALF OF THE BOARD OF DIRECTORS
"James Anderson"
Chairman and CEO
For further information regarding Guanajuato Silver Co. Ltd, please contact:
JJ Jennex, Gerente de Comunicaciones
T: 604 7213 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 ability of the Company to successfully ramp-up and maintain production at El
Cubo to the planned tonnage and produce larger quantities of silver and gold concentrate at higher grades; the Company’s
ability to restart production from the El Pinguico mine and supply sufficient quantities of silver and gold bearing material from
El Pinguico and El Cubo to the El Cubo mill to produce concentrate at the projected amounts, grades, costs and revenues; the
amount and timing of receipt of the provisional payment from the Company’s third delivery of concentrate sales, the Company’s
ability to increase gold recoveries in excess of 80% in the near future and achieve positive EBITA by Q1 of 2022, the
Company’s future development and production activities; estimates of mineral resources and the accessibility, attractiveness,
mineral content and metallurgical characteristics thereof; the opportunities for future exploration, development and production
at El Cubo and El Pinguico and the proposed exploration, development and production programs therefor and the timing and
costs thereof; the success related to any future exploration, development and/or production programs; and the total funds raised
under the Private Placement and the timing thereof.
Such forward-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 the assumptions upon which they are
based, including geotechnical and metallurgical characteristics of rock conforming to sampled results and metallurgical
performance; tonnage of mineralized material to be mined and processed; resource grades and recoveries; assumptions and
discount rates being appropriately applied to production estimates; success of the Company’s combined El Cubo / El Pinguico
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operation; prices for silver and gold remaining as estimated; currency exchange rates remaining as estimated; availability of
funds for the Company's projects; capital, decommissioning and reclamation estimates; prices for energy inputs, labour,
materials, supplies and services (including transportation); 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 to differ materially from those expected including, but not limited
to, market conditions, availability of financing, currency rate fluctuations, actual results of exploration, development and
production activities, actual resource grades and recoveries of silver and gold, 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 successfully ramp-up and maintain
production at the El Cubo mill to process mineralized materials to produce silver and gold concentrate in the amounts, grades,
recoveries, costs and timetable anticipated. In addition, GSilver’s decision to process mineralized material from its estimated
resources at El Cubo and above and underground stockpiles at El Pinguico through the El Cubo mill 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 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 results of the Company's recently announced preliminary economic assessment and projected production
of silver and gold will be realized. There is also uncertainty about the spread of COVID-19 and variants of concern and the
impact they will have on the Company's operations, supply chains, ability to access El Pinguico and/or El Cubo or procure
equipment, contractors and other personnel on a timely basis or at all and economic activity in general. All the forward-looking
statements 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. These forward-looking statements 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.