Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF) is pleased to provide an operations update highlighting the impact of additional production from the Company’s recently acquired Topia and San Ignacio mines.

Highlights:

• 267,525 ounces of silver equivalent produced in August 2022; up 122,864 AgEq ounces or 85% from July, which only included production from El Cubo.
• Cash costs per AgEq ounce continue to decline at El Cubo with July costs declining to $12.85; costs also remain in-line with expectations Companywide at $15.09 in August.
• Silver and gold recoveries for August were 88.9% and 85.6% respectively.
• The Company anticipates ending the year at a run rate of approximately 3.4M AgEq ounces per annum.

James Anderson, Chairman and CEO said, “Within one week of closing our latest Mexican mines acquisition, we had initiated mining of silver-rich material from San Ignacio and began transporting this material to El Cubo for processing; this rapid restart again highlights our team´s ability to swiftly and successfully restart mines and move them towards full production. In addition, production of silver-lead-zinc concentrates from our Topia mine in the State of Durango continued uninterrupted through our integration process; refinements at both the Topia mine and plant have been initiated with planned improvements expected in the months ahead.”

Record Production

Due to the professional integration of Topia and San Ignacio into Guanajuato Silver’s production schedule, in August the Company saw an 85% increase in AgEq ounces produced over July 2022. Additional incremental increases in production from Topia and San Ignacio are anticipated in the months ahead as part of the Company´s ramp up schedule.

Operational Cash Cost per AgEq ounce

The Company´s ongoing ramp up of production and targeted capital expenditures have had a meaningful reduction in operational cash costs at El Cubo as evidenced by the month-to-month declines in operating cash costs to a low of $12.85 per AgEq ounce in July. The introduction of additional assets into the production mix increased cash costs in August to $15.09 per AgEq ounce. The Company´s approach to cost reduction will be applied to all the new assets looking for operational cost reductions in the months ahead.

Silver and Gold Recoveries

Ongoing testing and enhancements of the Company’s metallurgical procedures and treatments have had a significant impact with notable month over month increases in precious metals recoveries. August silver recoveries achieved a record of 88.9%; the gold recovery for August was 85.6%.

Valenciana Mines Complex

Company engineers continue to work diligently to bring the Valenciana Mines Complex, including the Cata processing facility, back online in a timely fashion. Exact timelines for the inclusion of silver and gold production from Valenciana in the Company´s production mix will be made available in a subsequent news release.

*July and August cash cost per AgEq are preliminary numbers only, subject to final adjustments to be completed and disclosed along with the Company’s Q3 2022 financial results. 

Omnibus Equity Compensation Plan      

GSilver has adopted, subject to approval of the Company’s “disinterested shareholders” and the TSX Venture Exchange an omnibus equity compensation plan with a view to providing the Company with a range of incentive awards including restricted share units, deferred share units, performance share units and other share-based awards to attract, retain and motivate employees, officers, directors and consultants of the Company and its affiliates. The Omnibus Plan, which is in addition to the Company’s existing 10% rolling stock option plan, is a “fixed” plan which reserves for issuance a maximum of 15,000,000 common shares for grants and awards to key employees, officers, directors and consultants (subject to certain limits on grants to individual participants or groups of participants as per the policies of the TSXV) who are expected to contribute to the Company’s success and help achieve long-term objectives that will benefit the Company and its shareholders.  “Disinterested” shareholder approval for the Omnibus Plan will be sought at GSilver’s upcoming annual general meeting scheduled for October 27, 2022 and the full text of the Omnibus Plan is included in the Company’s management information circular for the 2022 AGM filed on SEDAR.

Technical Information

Hernan Dorado Smith, a director and officer 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

GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines near the city of Guanajuato, Mexico, which has an established 480-year mining history. With five mines and three processing facilities, the Company is one of the fastest growing silver producers in Mexico.