REG - Guanajuato Silver Co - Q4 2022 Production Results

Guanajuato SilverAnnouncement

26/01/2023 13:15

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RNS Number : 9747N  Guanajuato Silver Company Ltd.  26 January 2023

26 January 2023

 

 

Guanajuato Silver Company Ltd

("Guanajuato Silver" or the "Company")

 

Q4 2022 Production Results

 

Record 836,375 AgEq Ounces Produced in Q4

 

19% Increase Over Q3

 

Guanajuato Silver Company Ltd. (TSXV:GSVR) (OTCQX:GSVRF) (AQSE:GSVR), a
precious metals producer in Mexico, is pleased to announce consolidated
production results for the three months ended December 31, 2022. Production
results are 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.

 

Q4 2022 Production Highlights

 

·      Record production during the quarter of 836,375 silver-equivalent
("AgEq") ounces derived from 401,244 ounces of silver, 3,907 ounces of gold,
811,492 pounds of lead and 1,261,554 pounds of zinc. Silver-equivalent
production for all of 2022 totaled 2.15 million ounces.

·      Average silver recoveries of 86.8% continue to surpass historical
recoveries.

·      The dry stack tailings project at El Cubo has been initiated and
advanced engineering has been completed; the Company is awaiting regulatory
approval to begin construction of a dry stack facility that would increase
tailings capacity at El Cubo from 2.5 years to approximately 15 years of
additional tailings storage.

·      A new gravity circuit at El Cubo was completed during the quarter
with the objective of recovering gold and silver from the Mastrantos IV
historical tailings pond (See GSilver news release dated June 22, 2022 -
GSilver Discovers High-Grade Historical Tailings Material at El Cubo Assays
727 GPT AgEq Over 1.2m and 711 GPT AgEq Over 1.0m
(https://gsilver.com/news/2022c/789-ilveriscoversighradeistoricalailingsateriala20220622)
). The new gravity circuit is expected to begin commercial operations in Q1,
2023.

·      Installation of a new exhaust fan at El Cubo with the capacity to
circulate 250 cubic feet per minute has been completed; ventilation at the
mine has been substantially improved.

·      Substantial cost reductions were realized during the quarter
through the purchase of compressors and a wholly owned scoop tram fleet;
further savings were realized as the Company reduced the total number of
outside contractors it utilizes in its mining operations.

·      All recently acquired mining assets are now in production; all
assets acquired through the MMR transaction (San Ignacio, VMC and Topia) in
August 2022 are now fully operational. Towards the end of the quarter, the
Cata mill at VMC was recommissioned and is currently processing mineralized
material from San Ignacio and the Los Pozos mine at VMC; the Topia mine in
Durango did not lose a single day of production during the MMR ownership
handover.

 

"We ended 2022 with record production of precious metals from five mines and
three processing facilities," said Chairman & CEO, James Anderson.
"Capital investments made during Q4 are already generating improved
efficiencies and our operations team continues to look for opportunities to
enhance profit margins as we strive to continue our trend of quarterly
increases in silver production across all of our producing assets."

 

 

 

1.    Silver equivalents are calculated using an 89.97:1 (Ag/Au), 0.05:1
(Ag/Pb) and 0.08:1 (Ag/Zn) ratio for Q4 and Q3 2022; 83.4:1 (Ag/Au) ratio for
Q2 2022; and 80:1 (Ag/Au) ratio for Q1 2022.

 

 

Q4 2022 Mine Operations Continue Trend of Quarter over Quarter Production
Increases

 

Consolidated silver production increased 22% to 401,244 ounces in Q4 2022
compared to Q3 2022; similarly, consolidated gold production increased by 21%
to 3,907 ounces over the same period. During the fourth quarter, mineralized
material from San Ignacio was sent to the El Cubo mill for processing; in 2023
the Company expects to process all mineralized material from San Ignacio at
the recently reactivated Cata mill at VMC. (See GSilver news release dated
January 17, 2023 - "Guanajuato Silver Restarts the Cata Mill at the Valenciana
Mines Complex
(https://gsilver.com/news/2023c/839-uanajuatoilverestartstheataillatthealenciana20230117)
")

 

In Durango, third-party mill feed from local operations in the vicinity of the
Topia mine added to production during the quarter; this supplemental
production amounted to 20% of all tonnes processed at Topia during the quarter
and contributed to higher grades. There are several small mining operations
located nearby the Topia mine, and the Company intends to use the Topia
processing facilities as the centerpiece of a hub & spoke strategy that
would bring in supplemental material for processing in partnership with
neighboring operations.

 

Consolidated silver equivalent production in Q4 was 19% higher than the
previous quarter. This increase reflects the continuing ramp-up of operations
at all of Guanajuato Silver's mining assets.  Total production for 2022 was
2.15 million AgEq; the Company ended the year at a commercial run-rate of 3.5
million silver-equivalent ounces, which was approximately 8% higher than
initially anticipated for 2022.

 

 

 

Technical Information

Reynaldo Rivera, VP of Exploration of Guanajuato Silver, 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: +1 (604) 723 1433

E: jjj@GSilver.com

GSilver.com

 

VSA Capital - AQSE Corporate Adviser

T: +44 (0) 20 3005 5000

Simon Barton - Corporate Finance

Tolgahan Kuce - Corporate Finance

Andrew Monk - Corporate Broking

David Scriven - Corporate Broking

 

About Guanajuato Silver

Guanajuato Silver 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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