REG - Guanajuato Silver Co - Mid-Q4 Production Update

Guanajuato SilverAnnouncement

12/12/2023 11:30

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RNS Number : 5065W  Guanajuato Silver Company Ltd.  12 December 2023

 
 

 Guanajuato Silver Provides Mid-Q4 Production Update

 

Guanajuato Silver Company Ltd. (the "Company" or "GSilver")
(TSXV:GSVR)(OTCQX:GSVRF) is pleased to provide an operations update prior to
year-end 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.

 

November Production Results Demonstrate Improved Performance

During the second and third quarters of 2023, the Company completed several
changes to operations at all of GSilver's producing silver mines. (See GSilver
news release dated November 24, 2023 - "Guanajuato Silver Reports Q3 2023
Financial and Operating Results
(https://gsilver.com/news/2023c/877-uanajuatoilvereports32023inancialandperating20231124)
"). Most notably:

·    Mining operations were adjusted at El Cubo to significantly increase
the number of available mining stopes.

·    Dewatering commenced at El Cubo to access higher-grade mineralized
zones located in deeper areas of the Villalpando section of the mine.

·    The business model at Topia was changed to center on purchasing
mineralized material from underground contract miners and local operators.

 

Results from October to the end of November have demonstrated improvements
across almost all measurable categories.

 

 

(1)Silver equivalents are calculated using an 84.85:1 (Ag/Au), 0.04 (Ag/Pb)
and 0.05  (Ag/Zn) ratio for November and an 85.70:1 (Ag/Au), 0.04 Ag/Pb), and
0.05 (Ag/Zn) ratio for October.

 

James Anderson, Chairman & CEO of Guanajuato Silver, said, "As previously
reported, we have adjusted several operating procedures and made significant
capex investments designed to increase efficiencies and better overall
commercial performance. Results to date are very encouraging; we appear to be
back on track in terms of the progress of the ramp-up at El Cubo as we have
increased the available production stopes there from 10 to 23; also, our new
business model at Topia is generating much healthier economics. At San
Ignacio, November was the best single month on record regarding tonnes mined.
 We are confident that the trajectory of this success will continue well into
the New Year."

 

 

Decision to Transition to Dry Stack

After a comprehensive internal review, Guanajuato Silver has decided to
proceed with the installation of a dry stack tailings facility at the
Company's wholly owned El Cubo Mines Complex. A dry stack tailings facility
employs a filter press that will extract approximately 82% of the water from
the tailings generated during mineral processing; this water can then be
reused and recycled continuously. The "dry" tailings process is much easier to
rehabilitate, reduces future environmental impact and, increases overall
safety for local communities by increasing the structural integrity of the
tailings deposit, and would extend the tailings capacity at El Cubo by an
estimated 18 to 20 years. GSilver anticipates the start of production of the
new dry stack facility to commence in H2 2024, and the Company will provide
more details on specific timing later in 2024.

 

James Anderson, Chairman & CEO, added, "Transitioning our El Cubo tailings
to a dry stack technique further enhances Guanajuato Silver's commitment to
become one of Mexico's most environmentally friendly mining companies. This
decision to move away from the current Mastrantos basin system at El Cubo will
add up to 20 years of tailings capacity, while confirming our commitment to
employ the best and most environmentally sound contemporary mining
techniques."

 

 

Caption: Guanajuato Silver's current Mastrantos tailings basins at El Cubo.
Mastrantos IIIB is currently active.

 

 

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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