REG - Guanajuato Silver Co - New Vein Discovery at El Cubo Mine

Guanajuato SilverAnnouncement

10/11/2022 13:00

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RNS Number : 0106G  Guanajuato Silver Company Ltd.  10 November 2022

10 November 2022

Guanajuato Silver Company Ltd

("GSilver" or the "Company")

 

New Vein Discovery at El Cubo Mine

 

Guanajuato Silver Company Ltd. (the "Company" or "GSilver") (TSXV:GSVR)
(OTCQX:GSVRF) (AQSE:GSVR) is pleased to announce the drill results that
confirm the discovery of a new transverse vein at the Company's wholly owned
El Cubo Mine in Guanajuato, Mexico.

Recent stope development and drilling in the Villalpando area of the El Cubo
mine, along with detailed computer modeling and reinterpretation of past
operators' drill results, has revealed a new vein structure that has been
christened the "San Luis" vein. This system was first identified by previous
operators; however, the San Luis vein was never pursued or exploited, and the
extent of the mineralization remained unknown. The San Luis vein runs
perpendicular to the primary regional north-west Villalpando and Dolores
mineralized vein structures, and like other transverse veins at El Cubo, the
San Luis vein is anticipated to often carry proportionally higher gold
content. GSilver's recent drilling has confirmed continuity of the vein. It is
expected that this mineralization can be quickly accessed from several adits
and ramps, with initial production having already commenced. It is further
envisioned that San Luis may develop into a gold-rich vein system and grow in
importance in the same way that the Santa Cecilia area has become the largest
source of high-grade material at El Cubo.

James Anderson, Chairman and CEO said, "Economic success of our operations is
driven by grade, and the identification of another gold-rich transverse vein
that can rapidly enhance our mining schedule further demonstrates the
considerable potential remaining at El Cubo. With almost 200-years of mining
history behind it, El Cubo is ready to begin a new chapter of growth as the
centerpiece of our hub & spoke strategy in Guanajuato."

Note: All silver equivalent (AgEq) values are calculated based on a long-term
gold to silver price ratio of 80:1 as used by mineral industry advisors, Behre
Dolbear and Company (USA), Inc., in the Company's NI 43-101 PEA report with
the effective date of January 31, 2021; a copy of which is available for
review on SEDAR. Abbreviations used in this news release include: gpt: grams
per tonne; Au: gold; Ag: silver; m: metre, AgEq: silver equivalent, Est.:
Estimated.  The historic drill results from the San Luis vein have not been
verified by a qualified person on behalf of GSilver and should not be relied
upon.

Figure 1: El Cubo 3-D view of principle high-grade epithermal veins

Sampling and quality assurance/quality control

Drill core was first reviewed by a Company geologist, who identified and
marked intervals for sampling. The marked sample intervals were then cut in
half with a diamond saw; half of the core was left in the core box and the
other half was removed, placed in plastic bags, sealed and labeled. Intervals
and unique sample numbers are recorded on the drill logs and the samples are
sequenced with standards and blanks inserted according to a predefined QA/QC
procedure. The samples are maintained under security on site until they are
shipped to the analytical lab. The analytical work reported on herein was
performed by Corporacion Quimica Platinum S.A de C.V., Silao, Guanajuato,
Mexico. To validate our assay results and our preparation procedures, GSilver
sends additional random samples representing approximately 20% of all
analytical samples to Bureau Veritas in Hermosillo, Sonora, Mexico. Bureau
Veritas is an ISO/IEC (International Organization for
Standardization/International Electrotechnical Commission) geo-analytical
laboratory and is independent of GSilver and its "qualified person". In order
to further validate our assay results and our preparation procedures GSilver
sent additional random samples representing approximately 10% of all
analytical samples to SGS Mexico, S.A de C.V, Durango, Mexico. SGS is also an
ISO/IEC geo-analytical laboratory and is independent of GSilver and its
"qualified person". Core samples were subject to crushing at a minimum of 70
per cent passing two millimeters, followed by pulverizing of a 250-gram split
to 85 per cent passing 75 microns. Gold determination was via standard atomic
absorption (AA) finish 30-gram fire assay (FA) analysis, in addition to silver
and 34-element using fire assay and gravimetry termination. Following
industry-standard procedures, blank and standard samples were inserted into
the sample sequence and sent to the laboratory for analysis. Data verification
of the analytical results included a statistical analysis of the standards and
blanks that must pass certain parameters for acceptance to ensure accurate and
verifiable results. GSilver detected no significant QA/QC issues during review
of the data and is not aware of any sampling, recovery or other factors that
could materially affect the accuracy or reliability of the data referred to
herein.

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

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 near the city of Guanajuato, Mexico, which has
an established 480-year mining history. With five mines and three processing
facilities, the Company is one of the fastest growing silver producers in
Mexico.

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