~ GSilver Begins Mineral Processing at El Cubo ~ ~ Anticipates 1st Concentrate Sales in October ~
TSX-V: GSVR OTCQX: GSVRF
~ GSilver Begins Mineral Processing at El Cubo ~
~ Anticipates 1st Concentrate Sales in October ~
October 12, 2021 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company” or
“GSilver”) (TSXV:GSVR)(OTCQX:GSVRF) is pleased to announce that processing of silver and gold
bearing material has commenced at its El Cubo mine and mill located 11km east of the city of Guanajuato,
Mexico. The Company’s first concentrate sales are anticipated to occur before the end of October, 2021.
James Anderson, Chairman and CEO of GSilver commented, "We have achieved yet another significant
milestone - on track, on time and on budget - with the recommissioning of our El Cubo mill. I congratulate
all of our team members on executing this noteworthy achievement so rapidly."
Mineral Processing Commences:
Guanajuato Silver Company Ltd. has commenced the processing of silver and gold bearing material at its
El Cubo mill. The C ompany is producing a bulk silver and gold concentrate that will be sold to Ocean
Partners UK Ltd., as announced in the Company’s news release dated Sept. 23rd. (Click Here.)
Crushing and grinding of mill feed from El Cubo commenced on October 8, 2021, after GSilver had
accumulated over 20,000 tonnes of stockpiled material in the El Cubo storage yard. The Company expects
to deliver its first shipment of concentrate by the end of the month and to receive initial payment shortly
thereafter.
The Company has completed most of the US$3.5m in planned upgrades at its El Cubo floatation
processing plant, which is capable of handling approximately 1500 tonnes per day, or over 500,000 tonnes
per year. With initial mine production from El Cubo planned at ~ 750 tonnes per day, the Company's mill
has ample capacity for expansion to handle material from the Company’s nearby El Pinguico project
and/or other sources of material from the greater Guanajuato Mining District.
Director and COO Hernan Dorado said: “Having completed the acquisition of El Cubo in April 2021, only
six months ago, our mining and mineral processing teams have done an exceptional job in swiftly bringing
the mill and related facilities back online. The start-up process is proceeding as envisioned, including short
stoppages while all of the moving parts of the plant are tested, retested, and in some cases operated for the
first time. This has been a relatively smooth process at El Cubo, and we anticipate a short timeline of
ramping up to our planned initial monthly throughput of ~ 22,500 tonnes.”
Mining:
Prior to commencing mill operations, GSilver mined and stockpiled approximately 20,000 tonnes of
material from El Cubo. For the ramp up phase, we initially targeted somewhat lower -grade material than
is described in the Company’s preliminary economic assessment (the “PEA”) dated May 6, 2021 (effective
date: January 31, 2021) prepared by engineering firm Behre Dolbear & Company (USA) Inc. earlier in
the year, a copy of which is available on the Company’s website and SEDAR. The Company expects to
move on to higher grade areas within the mine in the months ahead. The PEA discusses inferred resources
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outlined at El C ubo of 1,453,000 tonnes of 214 gpt Ag and 2.78 gpt Au (435 gpt AgEq) and indicated
resources of 508,055 tonnes of 194 gpt Ag and 2.44 gpt Au (389 gpt AgEq) .1 Drilling is ongoing at El
Cubo and is intended to provide better grade control data at the 2175, 1850, and Cebolletas stope areas.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. There has
been insufficient exploration to allow for the classification of the inferred resources at El Cubo as an
indicated or measured mineral resource, however, it is reasonably expected that the majority of the inferred
mineral resources could be upgraded to indicated or measured mineral resources with continued
exploration. There is no guarantee that any part of the mineral resources at El Cubo will be converted into
a mineral reserve in the future.
Hernan Dorado Smith, a director 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 Co. Ltd.:
GSilver is a mining development company engaged in reactivating past producing silver and gold mines
near the city of Guanajuato, Mexico. The Company is focused on the refurbishment and swift re -
commencement of production from its El Cubo mine and mill and its nearby El Pinguico project, as well
as the delineation of additional silver and gold resources through underground and surface drilling. 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:
James Anderson, Director, +1 (778) 989-5346
Email: [email protected]
Continue to watch our progress at: www.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 amount and timing of initially processed mineralized material
and concentrate sales from El Cubo, the planned initial throughput at El Cubo and the expected total capacity of the
El Cubo mill, estimates of mineral resources; the attractiveness of potential vein widths and the existence of higher
grade areas within the mine; the opportunities for exploration, development and future production from El Cubo
and El Pinguico and the proposed exploration and development programs therefor and the timing and costs thereof;
the ability of the Company to successfully complete the refurbishment of the El Cubo mill, procure equipment, hire
personnel and supply and process sufficient mineralized material and resources from El Cubo and El Pinguico
1 Silver equivalent (AgEq) amounts were calculated using 1 ounce of gold is equal to 80 ounces of silver, on the basis of
the average 5-year historic silver and gold prices.
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through the mill to successfully begin commercial production of silver and gold in Q4 2021 at the projected amounts,
grades, costs and revenues and the success related to any future exploration and/or development programs.
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 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 re-start the El Cubo mill to process mineralized
materials to produce silver and gold in the amounts, grades, recoveries, costs and timetable anticipated. In addition,
GSilver’s decision to begin processing mineralized material from its estimated resources at El Cubo and its 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 Cubo and/or El Pinguico 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.
Cautionary Note for U.S. Investors regarding Reserve and Resource Estimates
Canadian public disclosure standards, including NI 43-101, differ from the requirements of United States securities
laws. In particular, the terms “indicated mineral resources” and “inferred mineral resources” in this news release
are defined in accordance with NI 43- 101 under the guidelines set out in the Canadian Institute of Mining,
Metallurgy, and Petroleum Definition Standards for Mineral Resources and Mineral Reserves 2014 (“CIM
Definition Standards”). The United States Securities and Exchange Commission (the “SEC”) has recently
modernized and amended its mineral property disclosure requirements for issuers whose securities are registered
with the SEC under the United States Securities Act of 1934 and now recognizes estimates of “measured mineral
resources”, “indicated mineral resources” and “inferred mineral resources” which are substantially similar to the
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corresponding CIM Definition Standards. The SEC has also amended its definition of “proven mineral reserves”
and “probable mineral reserves” to be substantially similar to the corresponding CIM Definitions. However, U.S.
investors are cautioned that while the foregoing terms adopted by the SEC are “substantially similar” to
corresponding definitions under CIM Definition Standards, there are differences. As such , there is no assurance
any mineral resources that the Company may report as "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under NI 43- 101 would be the same had the Company prepared the
resource estimates under the standards adopted by the SEC. United States investors are also cautioned that while
the SEC will now recognize " measured mineral resources", "indicated mineral resources" and "inferred mineral
resources", investors should not assume that all or any part of the mineral deposits in these categories would ever
be converted into a higher category of m ineral resources or into m ineral reserves. Mineralization described by
these terms has a great amount of uncertainty as to their existence, and great uncertainty as to their economic and
legal feasibility. Accordingly, U.S. investors are cautioned not to assume that any "measured mineral resources",
"indicated mineral resources", or " inferred mineral resources" that the Company reports are or will be
economically or legally mineable. Furthermore, it cannot be assumed that all or any part of "inferred mineral
resources" exist, are economically or legally mineable or will ever be upgraded to a higher category. Under
Canadian securities laws, estimated "inferred mineral resources" may not form the basis of feasibility or pre -
feasibility s tudies except in rare cases. Disclosure of "contained ounces" in a mineral resource is permitted
disclosure under Canadian securities laws. However, historically the SEC only permits issuers to report
mineralization that does not constitute "reserves" as in place tonnage and grade, without reference to unit measures.
Accordingly, information concerning mineral deposits set forth herein may not be comparable with information
made public by companies that report in accordance with U.S. securities laws.
Guanajuato Silver Company Ltd.
PH: +1(778) 989-5346 E: [email protected] W: GSilver.com
CA: Suite 578 - 999 Canada Place, Vancouver B.C. V6C 3E1
MX: Carretera - Guanajuato - Silao km 5.5, Int 4, Col. Marfil CP36250, Guanajuato, Gto., Mexico