REG - Guanajuato Silver Co - Increased Production in Q2

Guanajuato SilverAnnouncement

14/07/2023 13:15

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RNS Number : 1062G  Guanajuato Silver Company Ltd.  14 July 2023

 
 

Guanajuato Silver Company Limited

 

Guanajuato Silver Reports Increased Production in Q2

 

~ 6(th) Consecutive Quarter of Record Production ~

 

July 14, 2023 - Vancouver, British Columbia - Guanajuato Silver Company Ltd.
(the "Company" or "GSilver") (TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased
to announce consolidated production results for the three months ended June
30, 2023. Production results are generated from the Company's wholly owned El
Cubo Mines Complex ("El Cubo"), Valenciana Mines Complex ("VMC"), and San
Ignacio Mine ("San Ignacio") in Guanajuato, Mexico, and the Topia Mine
("Topia") in Durango, Mexico.

 

Q2 2023 Production Highlights

·      Record production during the quarter of 941,338 silver-equivalent
ounces ("AgEq") derived from 477,650 ounces of silver; 4,719 ounces of gold;
875,802 pounds of lead; and 897,258 pounds of zinc.

·      The development of the El Condor Tunnel Project at the Topia mine
has accessed the Argentina vein in an area that previous operators had not
reached; the new tunnel opens up the potential for additional mineralized
material that would sit in close proximity to the mill. The Argentina vein is
the most important producing vein system in the district and has been the
primary structure mined at Topia for the past 40 years. The nearby Santa Cruz
vein was also accessed with the El Condor tunnel, and both veins are currently
being drilled with results being collected and analyzed.

·      Underground hydraulic fill tailings system successfully realized
at the VMC; tailings material continues to be deposited underground in one of
the numerous voids that have been created over Valenciana's 450-year mining
history.

·      The Cata Shaft at VMC is now fully integrated into mining
operations; for the month of June, over 5,000 tonnes of mineralized material
were hoisted to surface through this shaft. The shaft, together with a new
underground locomotive system, has reduced haulage costs from the lower levels
and reduced the wear and tear on trucks, tires, and ramps.

·      The recovery of high-grade mine pillars has now begun at VMC and
this program of pillar extraction is expected to grow over the coming months
(see GSilver news release dated July 11, 2023 - "Guanajuato Silver Targets
High-Grade Pillars at the Valenciana Mines Complex
(https://gsilver.com/news/2023c/857-uanajuatoilverargetsighradeillarsatthealenci20230711)
").

James Anderson, Chairman & CEO, said, "We are proud to announce our sixth
consecutive quarter of increased precious metals production; we expect this
trend to continue as we head into the second half of the year. During Q1 and
Q2, we have implemented a number of efficiency upgrades that are now poised to
generate significant improvements to production grades and volumes, as we look
to optimize mine production at all four of our producing silver mines.
Furthermore, we continue to pursue additional opportunities to grow our
production portfolio as we move towards becoming Mexico's next mid-tier silver
producer."

 

1.     Silver equivalents are calculated using an 81.33:1 (Ag/Au), 0.04:1
(Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q2 2023 and an 83.78:1 (Ag/Au), 0.04:1
(Ag/Pb) and 0.06:1 (Ag/Zn) ratio for Q1 2023; respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2 2023 Mine Operations Continues Trend of Overall Quarter over Quarter
Production Increases:

 

·    Consolidated mine production increased 2.5% in Q2 2023 to 166,171
tonnes mined, as compared to 162,116 tonnes mined in Q1 2023.

·    Consolidated silver production increased 4% to 477,650 ounces in Q2
2023 compared to 458,803 ounces in Q1 2023; similarly, consolidated gold
production increased by 7% to 4,719 ounces over the same period; however,
overall lead and zinc production at Topia decreased by 3.4% and 22.2%,
respectively, in Q2 2023 from Q1 2023 primarily due to a shift to targeting
mineralized material that contained higher grades of silver and gold versus
base metals.

·    Consolidated silver-equivalent production in Q2 2023 was higher by
3,291 ounces over the previous quarter; this increase reflects the continuing
ramp-up of operations at all of Guanajuato Silver's mining assets.

·    Average recoveries for silver, gold and lead increased to 84.9%,
83.1% and 87.4% respectively in Q2 2023 from Q1 2023, although average
recoveries for zinc dropped from 83.5% in Q1 2023 to 78.1% in Q2 2023
primarily due to lower grade throughput of zinc.

 

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 Mines 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.

 

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, 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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