REG - Guanajuato Silver Co - El Horcon Mine Processing Initiated

Guanajuato SilverAnnouncement

27/11/2023 13:15

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RNS Number : 7957U  Guanajuato Silver Company Ltd.  27 November 2023

 

 
 

Guanajuato Silver Company Limited

Guanajuato Silver Initiates Processing of Mineralized Material from El Horcon
Mine

 

Guanajuato Silver Company Ltd. (the "Company" or "GSilver")
(TSXV:GSVR)(OTCQX:GSVRF) is pleased to announce the commencement of
development work and the processing of mineralized material from an existing
stockpile at its 100% owned El Horcon mine ("Horcon") located approximately
60km NW of Guanajuato, Mexico.

 

James Anderson, Chairman & CEO said, "The past producing El Horcon mine is
ideally situated to become a satellite mining operation that could
significantly expand Guanajuato Silver's production profile. The El Horcon
mine fits well within our strategy of further consolidating the Guanajuato
mining district as we look to take advantage of the excess processing capacity
of our two operating mills in the area. In addition to being able to
immediately access low-cost mineralized material from the existing stockpile,
we are confident that the development programs we have planned for 2024 will
add value to El Horcon and allow us to rapidly advance this exciting project."

 

El Horcon Stockpile

 

Starting in Mid-November, thus far the Company has shipped and processed 350
tonnes of material on a trial basis from the historical stockpile. Head grades
from different batches of this material were approximately 30-50 gpt Ag and
1.6 to 3.0 gpt Au. Initial processing runs gave recoveries of approximately
70% for Ag and 82% for Au. Note: this first batch of material was taken from a
higher grade area of the stockpile; future shipments are likely to be of
somewhat lower grades. The Horcon stockpile is expected to add approximately
4,000 tonnes of mineralized material per month over a six-to-ten-month period.
Metallurgical testing of the mineralized material at Horcon has been
demonstrated compatible with the Cata mill processing circuit and is currently
being blended with mineralized production from the Valenciana Mines Complex
("VMC").

 

In other development work, the Company earlier re-assayed previous core
samples, and conducted an extensive mapping and sampling program in advance of
a diamond drill exploration program that is scheduled to commence in Q2, 2024.

 

Acquired as part of the purchase of Great Panther's Mexican assets (see
GSilver's news release dated August 4, 2022 - GSilver Closes Acquisition of
Great Panther's Mexican Mining Assets
(https://gsilver.com/news/2022c/794-ilverlosescquisitionofreatanthersexicanin20220804)
), the El Horcon mining concessions cover 7,908 hectares comprising 17
contiguous mining concessions located approximately 60km to the northwest of
the VMC. Mineralization at El Horcon is dominated by the regional extension of
the prolific Veta Madre vein system and consists of numerous quartz-dominated
gold-silver bearing veins; mineralization at El Horcon also contains
significant lead and zinc values. The El Horcon mine is a past producer dating
back to the 16(th) century, and several underground workings, tunnels, and
access points are known to exist. In 2017, the previous operator established a
historical inferred mineral resource that was prepared in accordance with
National Instrument 43-101 of 2.0 million silver-equivalent ounces ("AgEq")
(see notes to table for silver-equivalent calculations) from 162,140 tonnes
grading 3.44g/t gold, 76 g/t silver and 2.69% lead, and 3.79% zinc based on 42
drill holes and 463 underground channel samples (see table and description
below - the inferred mineral resource is considered historical in nature).

 

 

 

1.    See NI43-101 Technical Report on the Guanajuato Mine Complex Claims
and Mineral Resource Estimations for the Guanajuato Mine, San Ignacio Mine and
El Horcon and Santa Rosa Projects dated February 20, 2017 with an effective
date of August 31, 2016; prepared for Great Panther Silver Limited by Robert
Brown, P. Eng. Qualified Person & VP Exploration.

 

Notes:

1.    US$110/tonne NSR Cut-off

2.    Silver equivalent was calculated using a 70.6 to 1 ratio of silver to
gold value.

3.    Rock Density for all veins for Diamantillo is 2.77t/m³, San
Guillermo 2.78t/m³, Diamantillo HW is 2.62t/m³, Natividad 2.57t/m³.

4.    Totals may not agree due to rounding.

5.    Grades in metric units

6.    Contained silver and gold in troy ounces

7.    Minimum true width 1.5m

8.    Metal Prices $18.00USD/oz silver, and $1,300USD/oz gold, and
$0.80USD/lb lead.

9.    Ag eq (g/t) and AgEq (oz) use only Au, Ag, and Pb values.

 

The El Horcon mineral resource estimate is a historical estimate and the
reader is cautioned not to treat them, or any part of them, as a current
resource. A qualified person has not done sufficient work to classify the
historical estimate as current mineral resources or mineral reserves and the
Company is not treating the historical estimate as current mineral resources
or mineral reserves. The mineral resource is taken from a Great Panther
technical report dated February 20, 2017. However, based on the assumptions,
parameters and methods in the prior technical report, as well as literature
and data review the Company considers such estimate to be relevant and
reliable and provides an indication of the extent of mineralization identified
by previous operators at the El Horcon Mine. To verify the historical mineral
resource estimate as a current mineral resource, a qualified person would need
to complete database validation, undertake a full review of estimation
parameters and procedures, and complete an updated mineral resource estimate
and a NI 43-101 technical report incorporating additional production,
drilling, sampling and resaying of core completed at El Horcon since February
2017.

 

 

 

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: 604 723 1433

E: jjj@GSilver.com

Gsilver.com

 

VSA Capital - AQSE Corporate Adviser

T: +44 (0) 20 3005 5000

Simon Barton - Corporate Finance

Thomas Jackson - 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 Complex, 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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