REG - Guanajuato Silver Co - Topia Mine Drill Results

Guanajuato SilverAnnouncement

23/08/2023 13:15

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RNS Number : 2393K  Guanajuato Silver Company Ltd.  23 August 2023

 

Guanajuato Silver Provides Drill Results from Topia Mine

~ Historic Argentina Vein Demonstrates Immediate Production Potential ~

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

Drill Results:

Commenting on these results, Chairman and CEO, James Anderson said, "For 40
years Industrias Penoles, the largest mining company in Mexico, mined the
Argentina vein at Topia. Remarkably, the vein was not pursued to the east of
the district, past a significant fault structure; we are very encouraged by
these initial results that indicate production potential within 2km of our
mill facility from this long-lived precious metals vein system."

 

Infill and resource expansion drilling continues at Topia with good results
being generated at the Argentina, Rosario, Santa Cruz, and the San Gregorio
veins. Drilling of the Argentina and Santa Cruz veins is being done from the
new El Condor Tunnel with the objective of defining the trend of
mineralization to the west of the current intercepts. The Rosario and San
Gregorio veins, located in the southeastern part of the district, have been
drilled from the Rosario ramp; these veins are separated by approximately 350
metres, and the objective there is to follow the trend of mineralization to
the west.

 

All silver equivalent (AgEq) values are calculated based on the following
long-term ratios to the silver price: 80:1 for gold, 0.04:1 for lead, and
0.05:1 for zinc.

 

Shares for Debt:

Guanajuato Silver also announces that is has arranged with certain creditors
to settle an aggregate of $1,207,093 in outstanding liabilities of the company
by the issuance of an aggregate of 3,772,167 common shares in the capital of
the company at a deemed price of $0.32 per share, subject to the receipt of
TSX Venture Exchange approval. The Debt settlement includes the issuance of
shares to one non-arm's length party totaling approximately C$150,000. (the
"Debt Settlement").

 

The non-arm's length party,  a private company controlled by Hernan Dorado, a
director and an officer of the Company, will receive 468,750 Shares in
settlement of C$150,000 due as of March, 2023 pursuant to the Company's
agreement to purchase certain underlying royalties over the Company's Pinguico
Mine as more particularly described in the Company's news release dated August
20, 2020 (VanGold Options Back Royalties to Streamline El Pinguico Ownership
Structure (https://pr.report/23hR7rw0) ); a total of C$350,000 remains to be
paid to finalise the agreement.

 

The issuance of Shares indirectly to Hernan Dorado who is an insider of the
Company (a "Related Party"), will be considered "a related party transaction"
within the meaning of Policy 5.9 of the TSX Venture Exchange (the "Policy")
and Multilateral Instrument 61-101 - Protection of Minority Security holders
in Special Transactions ("MI 61-101") adopted in the Policy. The Company
intends to rely on the exemptions from the formal valuation and minority
shareholder approval requirements of MI 61-101 contained in sections 5.5(a)
and 5.7(1)(a) of MI 61-101 in respect of such Related Party's participation in
the Debt Settlement as neither the fair market value of the Debt Settlement
of, nor the fair market value of the Shares to be issued thereunder, insofar
as it involves Related Parties, is expected to exceed 25% of the Company's
market capitalization (all as determined under MI 61-101). It is anticipated
that the material change report of GSilver to be filed in connection with this
announcement of the Debt Settlement will be filed less than 21 days in advance
of the closing of the Debt Settlement, which GSilver considers reasonable
within the context of current market conditions and the desire of all parties
to complete the Debt Settlement as expeditiously as possible. The securities
of the Company that will be acquired by the Related Party will be acquired
pursuant to an exemption from the prospectus requirement in section 2.14 of
National Instrument 45-106 - Prospectus Exemptions.

The Debt Settlement is subject to acceptance of the TSX Venture Exchange, and
all Shares issued thereunder will be subject to a statutory hold period of
four months and a day from the date of issuance in accordance with applicable
securities legislation.

 

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 which is independent of GSilver. To validate the Company's assay
results and its 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 the Company's assay results
and its 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.

 

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. Mr. Rivera has verified
the data disclosed in this news release, including the sampling, analytical,
and test data underlying the information or opinions contained in this news
release.

 

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, 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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