REG - Guanajuato Silver Co - Cata Mill restarts at Valenciana Mines Complex

Guanajuato SilverAnnouncement

17/01/2023 13:30

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RNS Number : 9907M  Guanajuato Silver Company Ltd.  17 January 2023

17 January 2023

 

Guanajuato Silver Company Ltd

("Guanajuato Silver" or the "Company")

 

Cata Mill restarts processing at the Valenciana Mines Complex

 

Guanajuato Silver Company Ltd. (TSXV:GSVR) (OTCQX:GSVRF) (AQSE:GSVR), a
precious metals producer in Mexico, is pleased to announce that the Cata mill
has commenced precious metals processing at the Company's wholly-owned
Valenciana Mines Complex ("VMC") in Guanajuato, Mexico.

 

James Anderson, Chairman & CEO said, "With the Cata mill now operational,
Guanajuato Silver adds a third processing facility to our growing inventory of
operating assets. The Cata mill is the last major asset acquired as part of
the 2022 transaction with Great Panther to be placed back in service. With
four operating silver mines and three production plants, we remain one of the
fastest growing silver producers in Mexico."

 

Commissioning of the Cata mill began during the last week of December 2022,
with mineralized material coming from VMC and the San Ignacio mine.  The
Company intends to start processing at a run-rate of approximately 8,000
tonnes per month with the goal of ramping up to 20,000 tonnes per month by
year end; full capacity at the Cata mill is 36,000 tonnes per month. The Cata
plant, which comprises three balls mills and a two-stage crushing system, is
in excellent working order; no significant capex was required prior to
restart.

 

The Company plans to operate the Cata mill with production from both VMC and
the San Ignacio mine and anticipates achieving initial metallurgical
recoveries in the 83%-85% range for silver and gold.

 

The Cata mill is located at approximately the mid-point of the 4.2-kilometre
strike length that spans mineralization at VMC, and sits immediately adjacent
to the Company's administrative offices, assay lab, and one of two primary
access shafts. In November 2021, the Cata mill was put on care and maintenance
by the previous operator due to a lack of tailings capacity. In response, the
Company intends to backfill tailings underground using a hydraulic fill system
that will make use of select voids and open stopes that have been created at
VMC over the past 450 years of underground mining.  The hydraulic fill system
will not only provide VMC with additional tailings capacity, but the process
also represents a more environmentally benign approach to tailings management.

 

Technical Information

Reynaldo Rivera, VP of Exploration of GSilver, has approved the scientific and
technical information contained in this news release. Mr. Rivera is a member
of the Australasian Institute of Mining and Metallurgy (AusIMM - Registration
Number 220979) and a "qualified person" as defined by National Instrument
43-101, Standards of Disclosure for Mineral Projects.

 

For further information regarding Guanajuato Silver Company Ltd., please
contact:

 

JJ Jennex, Gerente de Comunicaciones, T: +1 (604) 723 1433

E: jjj@GSilver.com

GSilver.com

 

 

VSA Capital - AQSE Corporate Adviser

T: +44 (0) 20 3005 5000

Simon Barton - Corporate Finance

Tolgahan Kuce - Corporate Finance

Andrew Monk - Corporate Broking

David Scriven - Corporate Broking

 

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, 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.

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