REG - Guanajuato Silver Co - High-Grade Pillars Targeted at Valenciana Mines

Guanajuato SilverAnnouncement

11/07/2023 13:15

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RNS Number : 6705F  Guanajuato Silver Company Ltd.  11 July 2023

 
 

Guanajuato Silver Targets High-Grade Pillars at the Valenciana Mines Complex

 

Guanajuato Silver Company Ltd. (the "Company" or "GSilver")
(TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased to announce the commencement
of a high-grade pillar exploitation program at the Company's 100% owned
Valenciana Mines Complex ("VMC") in Guanajuato, Mexico.

 

James Anderson, CEO & Chairman, said, "After over 450 years of
near-continuous production as one of the most significant silver mines in
world history, the Valenciana Mines Complex retains hundreds of underground
pillars that exhibit some of the highest silver grades within the entire
Guanajuato mining district. Immediately following our acquisition of
Valenciana, we recognized the substantial mineralized potential available to
us contained within the old workings that were left behind by previous
operators. Today, we are announcing the commencement of a pillar recovery
program, as we begin extracting mineralized material from what has been dubbed
the "La Patilla" pillar. We estimate this pillar's grade to be in the range of
300 g/t silver-equivalent to 330 g/t silver-equivalent based on numerous
channel samples across the width of the structure. At approximately 100m in
length, and averaging 35m in height, with an average mineralized width of
approximately 2.75m, volumetrically the La Patilla pillar has the potential to
fill our Cata mill to capacity for approximately one full month. Of course,
mining in other areas of the mine continues as per our production ramp-up
schedule."  The potential quantity and grade of silver-equivalent material at
the "La Patilla" pillar is conceptual in nature; there has been insufficient
exploration to define a mineral resource and it is uncertain if further
exploration will result in "La Patilla" being delineated as a mineral
resource. Silver-equivalent amounts are based on a ratio of one ounce of gold
being equal to 80 ounces of silver; one troy ounce converted to the metric
system equals 31.1035 grams.

 

The Valenciana Mines Complex has hundreds of small and large mining pillars
located throughout an underground mine network that extends over 4km in strike
length and 700m in vertical extent. The Company is targeting pillars that were
all made between the years 1768 and 1950. Because many of these pillars were
created during the Spanish colonial period using pre-modern mining techniques,
they do not contribute to mine stability and can safely be exploited. Other
pillars that qualify for this program will be replaced with backfill waste
material as part of a program to return Guanajuato Silver's tailings back
underground. Pillars are evaluated for their extraction suitability and
mineral potential using the polygon method that calculates the volume, grade
and tonnage for each pillar structure. Currently, four pillars are being
evaluated in the Cata area of the mine; the Company estimates that that there
are a minimum of 50 high-grade pillars that have the potential to be extracted
as part of this program.

Image: Guanajuato Silver's geological team reviews the La Patilla pillar (the
"Sideburn" pillar), which will be the first pillar removed as part of a
program to extract numerous high-grade pillars at the Valenciana Mines
Complex.

 

 

Figure 1: VMC longitudinal section showing primary areas being targeted for
pillar recovery. The area of the La Patilla pillar is highlighted below.

 

 

Figure 2: Area of the La Patilla pillar.

 

 

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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