REG - Guanajuato Silver Co - Statement re. Q1 2023 Production Results

Guanajuato SilverAnnouncement

19/04/2023 13:15

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RNS Number : 7588W  Guanajuato Silver Company Ltd.  19 April 2023

19 April 2023

 

 

 
 

Guanajuato Silver Company Limited

Q1 2023 production results

Record 938,047 AgEq ounces produced in Q1

12% Production Increase Over Q4

 

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 March 31, 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.

 

Q1 2023 Production Highlights

·      Record production during the quarter of 938,047 silver-equivalent
("AgEq") ounces derived from 458,803 ounces of silver; 4,413 ounces of gold;
906,696 pounds of lead; and 1,153,138 pounds of zinc; the ramp-up across all
four of our silver mines continues to generate quarter-over-quarter production
increases.

·      Underground hydraulic fill tailings system successfully
implemented at VMC; Tailings material is now being deposited underground in
one of the numerous voids that have been created over Valenciana's 450-year
mining history.

·      Topia processing capacity increased approximately 10% due
primarily to the optimization of a new tailings filter press. Also at Topia,
the widening of the Victoria Tunnel has been initiated; once completed, this
2.5km long tunnel will bring access to the lower areas of the Argentina vein,
which is the most important vein system in the district and is the principle
structure mined at Topia for over 40 years; At least three additional veins
will be accessed for production with this tunnel.

·      Principal central maintenance shop has been completed in
Guanajuato, and is now fully operational; the Company estimates that over US$1
million has been saved through the refurbishment of discarded and neglected
equipment recently acquired through the MMR transaction.

·      Production guidance for 2023 remains unchanged; silver equivalent
production is expected to range from 4.6 to 4.8 million ounces.

"It is our mission to consistently achieve our stated production goals, and in
the First Quarter we did just that.

Record production of precious metals in Q1 puts us on the right course for
2023 as we look to continue the ramp-up phase across all of our producing
assets," said James Anderson, Chairman & CEO.

 

 

 

Q1 2023 Mine Operations Continue Trend of Quarter over Quarter Production
Increases:

 

·    Consolidated silver production increased 14% to 458,803 ounces in Q1
2023 compared to Q4 2022; similarly, consolidated gold production increased by
13% to 4,413 ounces over the same period.

 

·    In Durango, consolidated lead production at the Topia mine increased
12% to 906,696 pounds in Q1 2023 compared to Q4 2022; consolidated zinc
production decreased 8.5% to 1,153,138 pounds over the same period.

 

·    Consolidated silver equivalent production in Q1 2023 was 12% higher
than the previous quarter; this increase reflects the continuing ramp-up of
operations at all of Guanajuato Silver's mining assets.

 

1.        Silver equivalents are calculated using an 83.78:1 (Ag/Au),
0.04:1 (Ag/Pb) and 0.06:1 (Ag/Zn) ratio for Q1 2023; an 81.35:1 (Ag/Au),
0.05:1 (Ag/Pb) and 0.06:1 (Ag/Zn) ratio for Q4; 89.97:1 (Ag/Au), 0.05:1
(Ag/Pb) and 0.08:1 (Ag/Zn) ratio for Q3 2022; an 83.4:1 (Ag/Au) ratio for Q2
2022; and a 80:1 (Ag/Au) ratio for Q1 2022 and Q4 2021, respectively.

 

Incentive Compensation:

 

The Company announces the granting of stock options and restricted share units
(RSUs) to select officers, directors, employees and consultants under the
Company's stock option plan and omnibus equity compensation plan,
respectively.

 

The Company has granted stock options under its stock option plan to purchase
up to an aggregate of 3.4 million common shares of the Company. The stock
options will be exercisable for a term of five years at a price per share
equal to today's closing price of the Company's common shares on the TSX
Venture Exchange, subject to vesting on the basis of one-third on the date of
grant, one third after 12 months and one-third after 24 months.

 

In addition, the Company has granted an aggregate of up to 400,000 RSUs, with
one-half vesting after six months and the remaining half after 12 months. Each
RSU entitles the holder to receive, upon vesting, one common share of the
Company.

 

The Company has also arranged, subject to acceptance of the TSX Venture
Exchange (the "TSXV"), to settle an outstanding advisory fee of $47,250 to
Canaccord Genuity Corp. ("Canaccord") for common shares of the Company based
on deemed price per share equal to today's closing price of the Company's
common shares on the TSXV.  All shares issued to Canaccord pursuant to the
debt settlement will be subject to a statutory hold period of four months and
a day from the date of issue in accordance with applicable securities
legislation.

 

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 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.

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