REG - Guanajuato Silver Co - Production Update

Guanajuato SilverAnnouncement

23/02/2023 13:15

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RNS Number : 8592Q  Guanajuato Silver Company Ltd.  23 February 2023

 

 
 

23 February 2023

 

 

Guanajuato Silver Company Ltd

("Guanajuato Silver" or the "Company")

Production Update

Guanajuato Silver Drills 6,981 g/t AgEq at San Ignacio and Prepares to Expand
Production

Guanajuato Silver Company Ltd. (the "Company" or "GSilver") (TSXV:GSVR)
(AQUIS:GSVR) (OTCQX:GSVRF) is pleased to provide drill results from the
Company's wholly owned San Ignacio mine ("San Ignacio") in Guanajuato, Mexico.

James Anderson, Chairman and CEO said, "SI22-006 is the best drill hole the
Company has drilled at any of its mines recently acquired from Great Panther
Mining in August of 2022. With almost five meters of true width intersecting
1,219 g/t AgEq, which includes 0.42m true width of 6,981 g/t AgEq, this may
represent a game changing result for the mine. The primary focus of our most
recent San Ignacio drill program was to target the Melladito vein system with
the goal of extending silver and gold mineralization in the south and north
areas of the mine. This outstanding result will be followed up with additional
drill holes attempting to follow the down dip extension of the vein within the
Company's 2023 drill campaign. In parallel, we are in the midst of driving a
400-metre access ramp from Melladito to the analogous Purisima vein, which
offers the potential for expanded production at San Ignacio."

The Melladito vein dips to the east, with a true width ranging from 0.25 m to
over 19 m; the vein has been delineated to a depth of 350 metres but retains
deeper potential. Additionally, the vein often returns proportionately higher
gold with lesser silver values. Current production from San Ignacio comes
mostly from the Melladito and the Nombre de Dios vein systems.

 

Note: All silver equivalent (AgEq) values are calculated based on a long-term
gold to silver price ratio of 80:1. Abbreviations used in this news release
include the following: g/t: grams per tonne; Au: gold; Ag: silver; m: metre,
AgEq: silver equivalent.

 

New Ramp to Purisima Vein

As part of the Company's 2023 development program, GSilver is currently
developing Ramp 430, which will allow for development and production from the
Purisima vein located approximately 400 metres to the east of the Melladito
vein; approximately 40% of Ramp 430 has been completed (see Figure 1 below).
The Purisima vein mirrors the Melladito vein system and has the potential to
considerably impact production as well as overall mine life once the vein is
encountered. The new ramp is expected to be finished within six months, which
will facilitate production of mineralized material from San Ignacio at an
expanded rate of over 12,000 tonnes per month.

 

Figure 1 - Cross Section of the Ramp 430 Project

 

 

Figure 2 - Long Section Melladito Vein - Drillhole SI22-006 Highlighted

 

 About the San Ignacio Mine

Mineralization at San Ignacio is consistent with high-grade epithermal vein
systems that are common within the Guanajuato Mining District; silver and gold
mineralization is contained within vein stockworks and breccias. To date,
eighteen veins have been defined at San Ignacio. Once mined, mineralization is
transported using 20-tonne trucks approximately 20km for processing at the
Company's wholly-owned Cata mill at the Valenciana Mines Complex.

 

New Resource Calculation Initiated

The Company also confirms that APEX Geoscience Ltd. of Edmonton, Alberta,
Canada ("Apex"), has been engaged to provide a current mineral resource
estimate for San Ignacio; the new mineral calculation is expected to be
completed by Q3, 2023.  A historical resource estimate at San Ignacio was
completed by Robert F. Brown and Mohammad Noupour on behalf of Great Panther
Mining Limited effective July 31, 2021 as part of a "NI 43-101 Mineral
Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato
and San Ignacio Operations, Guanajuato State, Mexico" dated February 28, 2022
(the 'Great Panther Report") and is summarized below:

Notes:

1.      Cut-offs were based on the marginal operating costs per mining
area being USD$127.40/tonne for San Ignacio.

2.      Block model grades converted to USD$ value using plant recoveries
of 87.15% Ag, 86.70% Au, and net smelter terms negotiated for concentrates.

3.      Rock Density for San Ignacio is 2.64t/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 0.5m.

8.      Metal Prices USD$20.00/oz silver, and USD$1,650.00/oz gold.

9.      AgEq oz were calculated using 85:1 Ag:Au ratio.

10.    Inferred Mineral Resources have a great amount of uncertainty as to
their existence and as to whether they can be mined legally or economically.
It cannot be assumed that all or part of the Inferred Mineral Resources will
ever be upgraded to a higher category.

11.    Mineral Resources that are not Mineral Reserves have no demonstrated
economic viability. The potential quantity and grade is conceptual in nature,
there has been insufficient exploration to define a Mineral Resource and it is
uncertain if further exploration will result in the target being delineated as
a Mineral Resource.

GSilver is not treating this historical estimate as current mineral resources,
as a qualified person on behalf of GSilver has not done sufficient work to
classify these estimates as current mineral resources. A thorough review by
Apex of all historic data as well as additional production (mining depletion),
drilling and underground sampling completed at San Ignacio since July 31,
2021, along with additional exploration and validation work to confirm results
and estimation parameters, will be required in order to produce a current
mineral resource estimate for San Ignacio.  See the Great Panther Report, a
copy of which is available for review under Great Panther's profile on SEDAR,
for details of the key assumptions, parameters, and methods used to prepare
the above historical resource estimate.

 

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 drilling data
referred to herein.

 

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.

 

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

 

 

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