~GSilver Provides Exploration Update Showing Historical High-Grade Intercepts at VMC~
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~GSilver Provides Exploration Update Showing Historical High-Grade Intercepts at VMC~
September 13, 2022 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “ Company” or
“GSilver”) ( TSXV:GSVR)(OTCQX:GSVRF) is pleased to provide an exploration update highlighting historical
drillhole data within certain areas of the Company’s 100% owned Valenciana Mines Complex (“VMC”) in
Guanajuato, Mexico.
Highlights
• VMC encompasses approximately 4.2km of strike length along the Veta Madre regional fault structure
and comprises five primary mine areas: Guanajuatito, Valenciana, Cata, Los Pozos, and Promontorio (see
Figure 1 below).
• Several high-grade areas of interest have been identified as potential near-term mining blocks.
• The Company anticipates that mining will recommence at VMC before the end of 2022, with mineralized
material being sent to El Cubo Complex for processing. The Company expects to restart the associated
Cata processing facility in H1 2023.
James Anderson, Chairman & CEO said, “Our geological teams are rapidly advancing our understanding of the
large volume of mineralized material that remains accessible and available to be mined at Valenciana. With over
400-years of mining history, Valenciana is poised to begin a new chapter of growth, development, and expansion
along one of the world’s most productive silver producing geological structures – the Veta Madre.”
The e xamination of historical high-grade drill results in the mine database along with consultation of the previous
mining and geology staff has revealed several priority areas within VMC that offer the promise of significant
high-grade tonnage including a deeper zone within the Valenciana Mine proper. Drilling between 2012 and 2021
(shown below) has indicated a consistent, well mineralized, unmined area with intercepts of both vein and
strata-bound mineralization. Additional areas throughout the mine have been identified and will be more fully
reviewed for potential future production.
The following selective historical drillhole results are all within one segment of the Valenciana Mines Complex.1
Northing Drillhole
#
From
(m)
To
(m)
Sample
Description
Width
(m)
Real Width
(m)
Au
(g/t)
Ag
(g/t)
AgEq
(g/t)
2100 UGV17-029 148.7 150.4 Veta Madre hanging wall 1.70 1.54 4.94 658 1053
UGV17-028 133.6 134.55 Hanging wall structure 0.95 0.89 2.25 310 490
and 137.5 138.45 Veta Madre hanging wall 0.95 0.89 1.81 225 370
UGVI21-002 48 55.6 Hanging wall structure 7.62 6.16 0.97 140 218
2120 UGVI21-003 43.28 46.57 Hanging wall structure 3.07 3.07 2.86 367 596
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and 51.42 51.92 Veta Madre hanging wall 0.5 0.47 1.27 191 293
2135 UGV17-025 85.8 98.45 Veta Madre hanging wall 12.65 12.49 1.6 213 334
UGVI21-005 36.63 45.40 Veta Madre hanging wall 8.77 8.42 2.84 389 616
and 36.63 37.28 Hanging wall structure 0.65 0.62 14.38 1565 2715
UGV17-026 124.3 126.15 Veta Madre Hanging wall 1.85 1.35 2.11 476 646
2160 UGV17-024 61.1 62.15 Veta Madre Hanging wall 1.05 1.04 0.815 402 467
UGV12-017 184.25 185.3 Hanging wall structure 1.05 1 0.78 295 357
and 198.35 200.5 Veta Madre Hanging wall 2.15 2.01 5.0 866 1266
and 203.25 204.55 Veta Madre center 1.30 1.21 1.24 199 298
UGV21-004 56.06 57.06 Veta Madre center 1 0.91 0.48 98 136
UGV12-016 185.25 186.4 Veta Madre Hanging wall 1.15 1.1 3.21 3 260
UGV12-014 175.5 180.85 Veta Madre Hanging wall 5.35 5.25 0.95 145 221
2180 UGV17-036 41.35 43.1 Veta Madre Hanging wall 1.75 1.24 2.97 101 339
(1) These results are historical in nature. GSilver’s qualified person has not done sufficient work to verify the
sampling, analytical, testing and QC/QA procedures underlying these results to opine on their adequacy
and accordingly such results should not be relied upon. They are presented to provide an indication of
the potential extent of the silver and gold mineralization within this selective area of the Valenciana mine
and as a guide to future exploration, development and mining.
Figure 1: Valenciana Mines Complex longitudinal view – area of interest circled in red
Additionally, prepared production stopes already exist at VMC; most notably, the Los Pozos mine has several
mineralized blocks that have been defined, organized and are ready for the initiation of cut & fill mining. These
areas were previously scheduled for extraction but remain available because of Valenciana being put on care &
maintenance in late 2021, solely due to a lack of tailing space. The Company anticipates that mining will
recommence at VMC before the end of 2022, with mineralized material being sent to El Cubo for processing.
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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 near the city
of Guanajuato, Mexico, which has an established 480-year mining history. With five mines and three processing
facilities, the Company is one of the fastest growing silver producers in Mexico.
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 future events or future
performance including, but not limited to, prospective areas of significant high-grade tonnage for near term mining at VMC
and the estimated timing and potential thereof, the ability of the Company to successfully integrate mineralized material
mined from VMC into the Company’s current processing operations at El Cubo, the ability of the Company to re-start the
Cata processing plant in Guanajuato, Mexico to process mineralized material from the VMC and San Ignacio mines and the
timing thereof, the potential quantity and grade of mineralized material accessible and available for mining at VMC, the
current and projected mined output from the Company’s existing El Cubo and El Pinguico mines and newly acquired San
Ignacio and Valenciana mines, and GSilver’s anticipated performance for the balance of 2022 and early 2023, the ability of
the Company to increase production, tonnage and silver and gold grades, improve metallurgical recovery rates, increase
revenues, and reduce production costs (including AISC) consistent with the Company’s expectations and production model;
the Company’s future development and production activities; estimates of mineral resources and mineralized material at
the Company’s m ining projects and the accessibility, attractiveness, mineral content and metallurgical characteristics
thereof; the opportunities for future exploration, development and production at the Company’s mines and the proposed
exploration, development and production programs therefor and the timing and costs thereof; and the success related to
any future exploration, development and/or production programs.
Such f orward -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 estimates of
mineralized material at San Ignacio and VMC and the assumptions upon which they are based, including geotechnical
and metallurgical characteristics of rock conforming to sampled results and metallurgical performance; available tonnage
and accessibility 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 successfully integrate
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production from San Ignacio and VMC into the Company’s existing mining and milling operations at El Cubo and the
availability of excess processing and tailings capacity at El Cubo to accommodate same; the Company’s ability to secure
additional sources of mineralized material for processing, 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, 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, currency rate fluctuations, rising inflation and interest rates, geopolitical conflicts including wars, actual results
of exploration, development and production 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, 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 continue to increase
production, tonnage milled and recovery rates, improve grades and reduce costs at El Cubo to process mineralized materials
to produce silver, gold and other concentrates in the amounts, grades, recoveries, costs and timetable anticipated. In
addition, GSilver’s d ecision to process mineralized material from El Cubo, El Pinguico and its newly acquired San Ignacio and
Valenciana mines 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 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 h ave on the
Company's operations, supply chains, ability to access mining projects or procure equipment, 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 interim financial statements and accompanying MD&A for the three month
period ended June 30, 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.