Guanajuato Silver begins storing venous material in El Cubo


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Company hires MGA for contract mining

VANCOUVER, BC / ACCESSWIRE / Aug 6, 2021 / Guanajuato Silver Company Ltd. (the “Company” or “GSmoney“) (TSXV: GSVR) (OTCQX: GSVRF) is pleased to announce that teams have started stockpiling mineralized material from its El Cubo mine in anticipation of the resumption of operations at the El Cubo plant. In addition, the Company has signed a mining development and production agreement with the contract mining group MGA to perform contract mining services at El Cubo until December 31, 2022.

Resumption of mining in El Cubo:

GSilver is pleased to announce that the mining, mucking and storage of mineralized materials at its El Cubo mine has resumed earlier than expected. Teams have started to remove previously blasted materials from worksite areas 2175 and 1850 (Click here and scroll down for the last long section) in the mine. This material is now stored in the patio of the El Cubo Mill (Click and scroll down for photos). These areas will be two of three construction areas (the other area being “Cebolletas”) where GSilver intends to focus its mining efforts at El Cubo for the next 12 to 18 months.

Reasons for mining 2175, 1850 and Cebolletas Stopes (the “Villalpando Stopes”):

  • These sites are easily available with an infrastructure made up of accesses and 4x4m wide ramps;
    • Crews cleaned up these access routes, installed new lighting and ventilation services, and cleared and re-established emergency exit routes inside the mine.
  • These sites have already been drilled and sampled by the former owner / operator Endeavor Silver Corp .;
    • GSilver engineers concluded that extensive drilling and sampling has been done to date to establish blast zones of mineralized material and to begin storing this material on the surface. The Company plans to conduct additional infill and expansion drilling in these areas in the near future, details of which will be reported and described in a subsequent press release. Additional drilling will be carried out primarily for grade control purposes.
  • These are just a few of the sites where mining had already taken place before the mine closed in November 2019;
    • There are many other areas of the mine where GSilver believes it can take the same approach. The three current areas of interest exist in the main venous structure of Villalpando; other areas in which the Company plans to focus its mining operations in the months and years to come include the Dolores North, Dolores South, La Loca, San Eusebio and Asuncion vein structures.

Company engineers believe that Villalpando’s chambers could deliver up to 15,000 tonnes of mineralized material per month once mining reaches full capacity and grinding resumes in the fourth quarter of 2021.

Commitment of MGA mining contractors:

GSilver is very pleased to announce that it has signed a 17 month global contract with MGA Mine Contractors (MGA Contratista Mineras SA de CV) of Durango, Mexico, to be the Company’s primary mining contactor. MGA has over two decades of experience providing quality mining subcontracting expertise to some of the leading Mexican mining companies including Grupo Mexico, Goldcorp., Fresnillo PLC., Endeavor Silver and First Majestic Silver. .

Hernan Dorado, COO of GSilver, said: “At GSilver, we have always planned to bring in an experienced and specialized mining outsourcing group when restarting El Cubo. In this way, we can defer significant amounts of capital expenditure and draw on the experience of our subcontractors. We plan to start El Cubo operations with our “in-company” workers in parallel with our contracted MGA miners. “

Hernan Dorado Smith, Chief Operating Officer and Director of GSilver and a “Qualified Person” as defined by National Instrument 43-101, Disclosure standards for mining projects, has approved the scientific and technical information contained in this press release.

About Guanajuato Silver Co. Ltd. :

GSilver is a mining development company engaged in the reactivation of old silver and gold mines near the city of Guanajuato, Mexico. The Company is focused on the refurbishment and rapid resumption of production at its El Cubo mine and mill and its neighboring El Pinguico project, as well as on the delineation of additional silver and gold resources by drilling. underground and above ground. Both projects are located within 11 km of the city of Guanajuato, which has an established mining history of 480 years.

ON BEHALF OF THE BOARD OF DIRECTORS
“James Anderson”
President and CEO

For more information on Guanajuato Silver Co. Ltd, please contact:
James Anderson, Principal, +1 (778) 989-5346
E-mail: This e-mail address is protected from spam. You need JavaScript enabled to view it.
Continue to monitor our progress on: www.GSilver.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements

This press release contains certain forward-looking statements and information, which relate to future events or future performance, including, but not limited to, the Company’s ability to successfully rehabilitate the plant. El Cubo, to procure equipment, hire personnel, and sufficiently supply and process the material and mineralized resources of the El Cubo mine through the El Cubo mill to successfully commence commercial production of the El Cubo mine. ‘silver and gold in the fourth quarter of 2021 at the expected amounts, grades, costs and revenues and the success related to development and production activities; mineral resource estimates; accessibility, attractiveness, mineral content and volume of mineralized material in the Villalpando chambers; future exploration, development and production opportunities at El Cubo and El Pinguico and the exploration, development and production programs proposed for this purpose, as well as the schedule and costs thereof; and the success of any future exploration, development and / or production program.

These forward-looking statements and information reflect the current beliefs of management and are based on information currently available and the assumptions made by the Company; these assumptions, although considered reasonable by the Company, are inherently subject to significant operational, commercial, economic and regulatory uncertainties and contingencies. These assumptions include: our mineral resource estimates at El Cubo and El Pinguico and the assumptions on which they are based, including geotechnical and metallurgical characteristics of the rock consistent with sampled results and metallurgical performance; tonnage of mineralized material to be extracted and processed; resource content and recoveries; assumptions and discount rates being applied appropriately to production estimates; the success of the Company’s El Cubo / El Pinguico combined operation; the prices of silver and gold remaining as estimated; exchange rates remaining as estimated; the availability of funds for the Company’s projects; capital, decommissioning and reclamation estimates; the prices of energy inputs, labor, materials, supplies and services (including transport); no work stoppage; no delays or unforeseen interruptions in scheduled construction and production; all necessary permits, licenses and regulatory approvals are received in a timely manner; and the ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.

Readers are cautioned that these forward-looking statements and information are neither promises nor guarantees, and are subject to risks and uncertainties which may cause future results to differ materially from those expected, including, but not limited to, market conditions, availability of financing, currency rate fluctuations, actual results of exploration, development and production activities, actual grades of silver and gold resources and recoveries, unanticipated geological or structural formations and characteristics , environmental risks, future prices of gold, silver and other metals, operational risks, accidents, labor problems, equipment or personnel delays, delays in the obtaining government or regulatory approvals and permits, inadequate insurance and other risks in the mining industry. There can be no assurance that GSilver will be able to successfully restart the El Cubo plant to process mineralized materials to produce silver and gold in the quantities, grades, recoveries, costs and planned schedule. Additionally, GSilver’s decision to begin processing mineralized material from its surface and underground stockpiles at El Pinguico and estimated resources at El Cubo through the El Cubo processing plant is not based on a study. feasibility of mineral reserves demonstrating economic and technical viability and is therefore subject to increased uncertainty and risk of failure, both economically and technically. Mineral resources that are not mineral reserves do not have demonstrated economic viability, are considered too geologically speculative for economic considerations to be applied to them, and may be materially affected by environmental factors, permits, permits, legal, title, socio-political, marketing and others. relevant questions. There can be no assurance that the results of the Company’s recently announced preliminary economic assessment and the projected production of silver and gold will be realized. There is also uncertainty as to the spread of COVID-19 and variants of concern and the impact they will have on the Company’s operations, supply chains, the ability to access El Pinguico and / or El Cubo or to procure equipment, contractors and other personnel in a timely manner. basic or not at all and economic activity in general. All forward-looking statements contained in this press release are qualified by these cautionary statements and those in our continuous disclosure documents available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

Guanajuato Silver Company Ltd.
Telephone: +1 (778) 989-5346 Email: This e-mail address is protected from spam. You need JavaScript enabled to view it. W: GSilver.com
CA: Suite 578 – 999 Canada Place, Vancouver BC V6C 3E1
MX: Carretera – Guanajuato – Silao km 5.5, Int 4, Col. Marfil CP36250, Guanajuato, Gto., Mexico

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