~ GSilver Provides Results from Expansion and Infill Drilling at El Cubo ~
TSX-V: GSVR OTCQX: GSVRF
~ GSilver Provides Results from Expansion and Infill Drilling at El Cubo ~
February 16, 2022– Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company” or “GSilver”)
(TSXV:GSVR)(OTCQX:GSVRF) is pleased to provide drilling results from its ongoing diamond drill program at its
100% owned El Cubo Mine located east of the city of Guanajuato, Mexico.
Highlights include:
• Drill results at El Cubo remain consistent with modeled ramp-up projections.
• A sub-parallel vein to Villalpando - the Asuncion Vein - has returned notable results.
• Drilling continues with two rigs operating at El Cubo and one operating at El Pinguico.
Conclusion of 2021 El Cubo Dill Program Maintains Consistency with Ramp-up Expectations:
Drilling at El Cubo has focused on the main Villalpando vein structure, specifically the 4-1500 stope area that forms
a continuation of the Cebolletas and 2175 stope areas. Drill results represented below conclude GSilver’s 2021
drill program at El Cubo and are in -line with the Company’s ramp -up modeling. For 2022, G uanajuato Silver
envisions an additional 8,000 metres of drilling at EL Cubo’s primary NW striking veins of Villalpando and Dolores.
In parallel, GSilver is also planning over 9,000 metres of drilling in 2022 to target the transverse veins (NE striking)
of El Cubo’s Santa Cecelia section; this area is underexplored and represents a primary zone for resource
expansion. (See GSilver news release dated December 21, 2021 – GSilver Drills 17.4m of 327gpt AgEq).
Infill (Grade Control) & Expansion Drilling Continues at El Cubo
Both drill holes VPO21-07 and VPO-08 drilled into a secondary vein structure to Villalpando, called the Asuncion
Vein; results here were among the best returned for this portion of the drill program. Notably, VPO21-07 returned
2.15 metres of 213 AgEq, demonstrating the potential of any of the 19 known vein structures at El Cubo to provide
high grade results.
James Anderson, Chairman and CEO said: “All drill results remain consistent the with ramp-up expectations and
position our mining operations at El Cubo to continue the current trajectory of delivering rising tonnage, grade,
recoveries, and revenue from precious metals concentrate sales.”
El Cubo Villalpando / 4-1500 Zone (note VPO21-01 to VPO21-04 were previously reported)
Drill Hole From (m) To
(m)
Interval
(m)
Estimated
True
Width
(m)
Au
gpt
Ag
gpt
AgEq
gpt
VPO21-01 105.80 117.35 11.55 6.35 0.69 65 120
including 114.50 117.35 2.85 0.41 0.91 95 168
VPO21-02 no significant results
VPO21-03 72.9 73.25 0.35 0.18 0.75 100 159
2
VPO21-04 132.05 139.95 7.9 0.32 0.43 42 77
including 136.45 137.95 1.5 0.51 0.69 72 127
VPO21-05 278.05 281.75 3.7 0.83 0.16 66 79
including 280.70 281.75 1.05 0.23 0.18 83 97
VPO21-06 190.85 193.90 3.05 1.04 0.10 13 21
Asuncion Vein (VP021-07, VP021-08 and VP021-09)
VPO21-07 60.00 65.85 5.85 3.26 0.41 77 110
including 63.70 65.85 2.15 1.2 0.83 146 213
VPO21-08 49.35 59.35 10.00 7.02 0.41 60 92
including 51.75 53.05 1.30 0.78 0.91 94 167
including 56.10 57.35 1.25 0.75 0.49 115 155
VPO21-09 45.45 48.10 2.65 2.07 0.34 64 91
including 46.90 47.45 0.55 0.43 0.47 113 150
and 99.95 107.80 7.85 6.50 0.14 19 30
VPO21-10 no vein intersection
VPO21-11 64.65 66.15 1.50 0.98 0.10 11 19
and 116.30 120.50 4.20 2.51 0.43 53 88
including 116.30 117.60 1.30 0.85 0.69 90 146
Note: All silver equivalent (AgEq) values are calculated based on a long-term gold to silver price ratio of 80:1 as
used by mineral industry advisors, Behre Dolbear and Company (USA), Inc., in the Company’s NI 43-101
Preliminary Economic Assessment report dated May 6, 2021 (effective date: January 31, 2021); a copy of which is
available for review on SEDAR.
Hernan Dorado, Director and COO said: “These are solid results; GSilver geologists are learning more and more
about the El Cubo deposit mineralisation, and are gai ning the confidence to try more exploratory efforts into
untested areas - especially at Santa Cecilia on the northern end of our El Cubo concessions.”
Figure 1: Long Section: Drill Results
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Figure 2: Long Section of the entire south portion of the Villalpando Vein
The drill holes reported in in this news release are all within the stope area marked “4-1500”.
Sampling and quality assurance/quality control
Drill core was first reviewed by a Company geologist , who identified and marked intervals for sampling. The
marked sample intervals were then cut in half with a diamond saw ; half of the core was left in the core box and
the other half was removed, placed in plastic bags, sealed and labeled. Intervals and unique sample numbers are
recorded on the drill logs and the samples are sequenced with standards and blanks inserted according to a
predefined QA/QC procedure. The samples are maintained under security on s ite until they are shipped to the
analytical lab. The analytical work reported on herein was performed by Corporacion Quimica Platinum S.A de
C.V., Silao, Guanajuato, Mexico. To validate our assay results and our preparation procedures , GSilver sends
additional random samples representing approximately 20% of all analytical samples to Bureau Veritas in
Hermosillo, Sonora, Mexico. Bureau Veritas is an ISO/IEC (International Organization for
Standardization/International Electrotechnical Commission) geo -analytical laboratory and is independent of
GSilver and its "qualified person". In order to further validate our assay results and our preparation procedures
GSilver sent additional random samples representing approximately 10% of all analytical samples to SGS Mexico,
S.A de C.V, Durango, Mexico. SGS is also an ISO/IEC geo-analytical laboratory and is independent of GSilver and its
"qualified person". Core samples were subject to crushing at a minimum of 70 per cent passing two millimeters,
followed by pulverizing of a 250-gram split to 85 per cent passing 75 microns. Gold determination was via standard
atomic absorption (AA) finish 30-gram fire assay (FA) analysis, in addition to Silver and 34-element using fire assay
and gravimetry termination. Following industry-standard procedures, blank and standard samples were inserted
into the sample sequence and sent to the laboratory for analysis. Data verification of the analytical results included
a statistical analysis of the stan dards and blanks that must pass certain parameters for acceptance to ensure
accurate and verifiable results. GSilver detected no significant QA/QC issues during review of the data and is not
aware of any sampling, recovery or other factors that could materially affect the accuracy or reliability of the data
referred to herein.
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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 th e scientific and technical information
contained in this news release.
About Guanajuato Silver Co. Ltd.:
GSilver mines and processes silver and gold concentrate from its El Cubo mine and mill. The Company continues
to delineate for additional silver and gold resources through underground drilling at El Cubo and its nearby El
Pinguico project. Both projects are located within 11km of the city of Guanajuato, Mexico 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 Company Ltd., please contact:
JJ Jennex, Communications Manager, +1 (604) 723-1433
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 Company’s proposed development and mining plans at El
Cubo, expected areas for future mining operations and the timing thereof, the Company’s proposed drilling and
exploration programs at El Cubo in 2022 including the total number of meters to be drilled, the locations thereof
and the anticipated results therefrom; the Company’s expectations for grade and width of certain veins within the
El Cubo mine including prospective high grade vein locations and opportunities for resource expansion at El Cubo;
and the Company’s ability to meet its ramp-up expectations and position its mining operations to continue the
current trajectory of delivering rising tonnage, grade, recoveries, and revenue from precious metals concentrate
sales. 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 mining operation and
development and exploration programs thereon; 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 silver, gold and other metals, operating risks, accidents, labour issues, equipment or
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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 continue to ramp-up its
operations at the El Cubo mill to deliver the rising tonnage, grades, recoveries, and revenue from precious metals
concentrate sales at the costs and within the 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 concentrate 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 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. The 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.