Guanajuato Silver Company Ltd. (TSX-V:GSVR) (AQUIS:GSVR) (OTCQX:GSVRF) is pleased to provide drill results from the Company’s wholly owned San Ignacio mine in Guanajuato, Mexico.

James Anderson, Chairman and CEO said, “SI22-006 is the best drill hole the Company has drilled at any of its mines recently acquired from Great Panther Mining in August of 2022. With almost five meters of true width intersecting 1,219 g/t AgEq, which includes 0.42m true width of 6,981 g/t AgEq, this may represent a game changing result for the mine. The primary focus of our most recent San Ignacio drill program was to target the Melladito vein system with the goal of extending silver and gold mineralization in the south and north areas of the mine. This outstanding result will be followed up with additional drill holes attempting to follow the down dip extension of the vein within the Company’s 2023 drill campaign. In parallel, we are in the midst of driving a 400-metre access ramp from Melladito to the analogous Purisima vein, which offers the potential for expanded production at San Ignacio.”

The Melladito vein dips to the east, with a true width ranging from 0.25 m to over 19 m; the vein has been delineated to a depth of 350 metres but retains deeper potential. Additionally, the vein often returns proportionately higher gold with lesser silver values. Current production from San Ignacio comes mostly from the Melladito and the Nombre de Dios vein systems.

Note: All silver equivalent (AgEq) values are calculated based on a long-term gold to silver price ratio of 80:1. Abbreviations used in this news release include the following: g/t: grams per tonne; Au: gold; Ag: silver; m: metre, AgEq: silver equivalent.

New Ramp to Purisima Vein

As part of the Company’s 2023 development program, GSilver is currently developing Ramp 430, which will allow for development and production from the Purisima vein located approximately 400 metres to the east of the Melladito vein; approximately 40% of Ramp 430 has been completed (see Figure 1 below). The Purisima vein mirrors the Melladito vein system and has the potential to considerably impact production as well as overall mine life once the vein is encountered. The new ramp is expected to be finished within six months, which will facilitate production of mineralized material from San Ignacio at an expanded rate of over 12,000 tonnes per month.

Figure 1 – Cross Section of the Ramp 430 Project

Figure 2 – Long Section Melladito Vein – Drillhole SI22-006 Highlighted

 About the San Ignacio Mine

Mineralization at San Ignacio is consistent with high-grade epithermal vein systems that are common within the Guanajuato Mining District; silver and gold mineralization is contained within vein stockworks and breccias. To date, eighteen veins have been defined at San Ignacio. Once mined, mineralization is transported using 20-tonne trucks approximately 20km for processing at the Company’s wholly-owned Cata mill at the Valenciana Mines Complex.

New Resource Calculation Initiated

The Company also confirms that APEX Geoscience Ltd. of Edmonton, Alberta, Canada has been engaged to provide a current mineral resource estimate for San Ignacio; the new mineral calculation is expected to be completed by Q3, 2023. A historical resource estimate at San Ignacio was completed by Robert F. Brown and Mohammad Noupour on behalf of Great Panther Mining Limited effective July 31, 2021 as part of a “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato and San Ignacio Operations, Guanajuato State, Mexico” dated February 28, 2022 and is summarized below:

1. Notes:
2. Cut-offs were based on the marginal operating costs per mining area being USD$127.40/tonne for San Ignacio.
3. Block model grades converted to USD$ value using plant recoveries of 87.15% Ag, 86.70% Au, and net smelter terms negotiated for concentrates.
4. Rock Density for San Ignacio is 2.64t/m³,
5. Totals may not agree due to rounding.
6. Grades in metric units.
7. Contained silver and gold in troy ounces.
8. Minimum true width 0.5m.
9. Metal Prices USD$20.00/oz silver, and USD$1,650.00/oz gold.
10. AgEq oz were calculated using 85:1 Ag:Au ratio.
11. Inferred Mineral Resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or part of the Inferred Mineral Resources will ever be upgraded to a higher category.
12. Mineral Resources that are not Mineral Reserves have no demonstrated economic viability. The potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource.

GSilver is not treating this historical estimate as current mineral resources, as a qualified person on behalf of GSilver has not done sufficient work to classify these estimates as current mineral resources. A thorough review by Apex of all historic data as well as additional production (mining depletion), drilling and underground sampling completed at San Ignacio since July 31, 2021, along with additional exploration and validation work to confirm results and estimation parameters, will be required in order to produce a current mineral resource estimate for San Ignacio. See the Great Panther Report, a copy of which is available for review under Great Panther’s profile on SEDAR, for details of the key assumptions, parameters, and methods used to prepare the above historical resource estimate.

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. To validate our assay results and our 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 our assay results and our 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.

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.