Gatos Silver, Inc. (TSX: GATO) (NYSE:GATO) announced production results for the quarter and six months ended June 30, 2023 with continued strong mill throughput rates at its 70%-owned Cerro Los Gatos mine in Mexico.

Dale Andres, CEO of Gatos Silver, commented: “The CLG mine continues to perform very well with another record for mill throughput rate during the quarter, supported by further mine debottlenecking and plant optimization efforts. We remain on track to achieve 2023 production guidance at CLG and to provide an updated mineral resource and reserve estimate before the end of the third quarter of this year, including a new life of mine plan.”

Production Results (100% basis)

CLG comparative production highlights are summarized below:

Mill throughput set a new quarterly record, averaging 2,916 tonnes per day during the second quarter of 2023, an increase of 26% compared to the second quarter of 2022.

Silver production was 2.00 million ounces in the second quarter of 2023, 13% below the 2.30 million ounces in the second quarter of 2022. The reduction is mainly attributable to a 29% decline in silver grades in Q2 2023, as expected in the mine plan, and partially offset by the 26% increase in mill throughput. Zinc production decreased by 5%, lead production declined by 18%, and gold production decreased by 6%, compared with the second quarter of 2022 due to lower mill feed grades as expected in the mine plan. Recoveries for the second quarter of 2023 were marginally lower than in the comparable quarter for 2022 due to lower grades and metallurgical characteristics which can vary quarter over quarter.

The paste backfill plant operated well during the quarter and is expected to be a key enabler for continued mine optimization, providing increased operational flexibility and productivity and helping to lower operating costs going forward. Development progress is enabling sufficient production flexibility to maintain current mill throughput rates, with continued focus on accessing the lower levels of the Central and Northwest zones and on initial development in the Southeast zone. Construction of the fluorine leach plant for zinc concentrate is complete with commissioning activities progressing well.

About Gatos Silver

Gatos Silver is a silver dominant exploration, development and production company that discovered a new silver and zinc-rich mineral district in southern Chihuahua State, Mexico. As a 70% owner of the Los Gatos Joint Venture (“LGJV”), the Company is primarily focused on operating the Cerro Los Gatos mine and on growth and development of the Los Gatos district. The LGJV consists of approximately 103,000 hectares of mineral rights, representing a highly prospective and under-explored district with numerous silver-zinc-lead epithermal mineralized zones identified as priority targets.

Qualified Person

Scientific and technical disclosure in this press release was approved by Anthony (Tony) Scott, P.Geo., Senior Vice President of Corporate Development and Technical Services of Gatos Silver who is a “Qualified Person” as defined in S-K 1300 and NI 43-101.