~ Anticipates 1st Concentrate Sales in October ~
Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF) is pleased to announce that processing of silver and gold bearing material has commenced at its El Cubo mine and mill located 11km east of the city of Guanajuato, Mexico. The Company’s first concentrate sales are anticipated to occur before the end of October, 2021.
James Anderson, Chairman and CEO of GSilver commented, “We have achieved yet another significant milestone – on track, on time and on budget – with the recommissioning of our El Cubo mill. I congratulate all of our team members on executing this noteworthy achievement so rapidly.”
Mineral Processing Commences:
Guanajuato Silver Company Ltd. has commenced the processing of silver and gold bearing material at its El Cubo mill. The Company is producing a bulk silver and gold concentrate that will be sold to Ocean Partners UK Ltd., as announced in the Company’s news release dated Sept. 23rd. (Click Here.)
Crushing and grinding of mill feed from El Cubo commenced on October 8, 2021, after GSilver had accumulated over 20,000 tonnes of stockpiled material in the El Cubo storage yard. The Company expects to deliver its first shipment of concentrate by the end of the month and to receive initial payment shortly thereafter.
The Company has completed most of the US$3.5m in planned upgrades at its El Cubo floatation processing plant, which is capable of handling approximately 1500 tonnes per day, or over 500,000 tonnes per year. With initial mine production from El Cubo planned at ~ 750 tonnes per day, the Company’s mill has ample capacity for expansion to handle material from the Company’s nearby El Pinguico project and/or other sources of material from the greater Guanajuato Mining District.
Director and COO Hernan Dorado said: “Having completed the acquisition of El Cubo in April 2021, only six months ago, our mining and mineral processing teams have done an exceptional job in swiftly bringing the mill and related facilities back online. The start-up process is proceeding as envisioned, including short stoppages while all of the moving parts of the plant are tested, retested, and in some cases operated for the first time. This has been a relatively smooth process at El Cubo, and we anticipate a short timeline of ramping up to our planned initial monthly throughput of ~ 22,500 tonnes.”
Prior to commencing mill operations, GSilver mined and stockpiled approximately 20,000 tonnes of material from El Cubo. For the ramp up phase, we initially targeted somewhat lower-grade material than is described in the Company’s preliminary economic assessment dated May 6, 2021 (effective date: January 31, 2021) prepared by engineering firm Behre Dolbear & Company (USA) Inc. earlier in the year, a copy of which is available on the Company’s website and SEDAR. The Company expects to move on to higher grade areas within the mine in the months ahead. The PEA discusses inferred resources outlined at El Cubo of 1,453,000 tonnes of 214 gpt Ag and 2.78 gpt Au (435 gpt AgEq) and indicated resources of 508,055 tonnes of 194 gpt Ag and 2.44 gpt Au (389 gpt AgEq). Drilling is ongoing at El Cubo and is intended to provide better grade control data at the 2175, 1850, and Cebolletas stope areas.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. There has been insufficient exploration to allow for the classification of the inferred resources at El Cubo as an indicated or measured mineral resource, however, it is reasonably expected that the majority of the inferred mineral resources could be upgraded to indicated or measured mineral resources with continued exploration. There is no guarantee that any part of the mineral resources at El Cubo will be converted into a mineral reserve in the future.
Hernan Dorado Smith, a director of GSilver and a “qualified person” as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical information contained in this news release.
About Guanajuato Silver Co. Ltd.:
GSilver is a mining development company engaged in reactivating past producing silver and gold mines near the city of Guanajuato, Mexico. The Company is focused on the refurbishment and swift re-commencement of production from its El Cubo mine and mill and its nearby El Pinguico project, as well as the delineation of additional silver and gold resources through underground and surface drilling. Both projects are located within 11km of the city of Guanajuato, which has an established 480-year mining history.
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We acknowledge the [financial] support of the Government of Canada.