GSilver Begins Drilling at El Cubo Provides Update on Mill Reopening

VANCOUVER, BC / ACCESSWIRE / September 1, 2021 / Guanajuato Silver Company Ltd. (the "Company" or "GSilver") (TSXV:GSVR)(OTCQX:GSVRF) is pleased to announce that underground infill and expansion drilling has commenced at its El Cubo mine located 11km east of the city of Guanajuato, Mexico. Meanwhile, re-commissioning of the Company's primary crusher has been completed in anticipation of the re-commencement of operations at the El Cubo processing plant (click for video).

El Cubo Drilling:

GSilver has hired Rockdrill Mining S.A. de C.V. (Rockdrill) of Aguascalientes, Mexico to perform underground drilling at its El Cubo mine. GSilver is proud to include Rockdrill (whose clients include Barrick Gold Corp., Newmont Corp., and Pan American Silver Corp.) as another of our top tier service providers while we move El Cubo swiftly back into production.

The Rockdrill contract envisions a total of 5,200m of underground drilling, using one of their XRD50 machines to drill primarily NQ diameter holes, generally no more than 300m in length. The rig is ‘Bobcat' mounted for ease of movement from drill station to drill station within the mine (see long- section and drill hole map below).

Engineering firm Behre Dolbear & Company (USA) Inc. prepared a Preliminary Economic Analysis technical report (PEA) for GSilver earlier in the year. (The PEA has an effective date of January 31, 2021, with an updated issue date of April 1, 2021; the PEA is available on GSilver's website and on SEDAR.) 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). The current drill program at El Cubo is intended to increase the confidence level of these resources as well as provide better grade control data as we begin mining at the 2175, 1850, and Cebolletas stope areas.

Foto: Accesswire

Foto: Accesswire

Proposed drill pattern at the Cebolletas Stope.

Operational Team in Place:

As the Company increases staff levels necessary for mining and plant operations in Guanajuato, our headcount in Mexico has naturally expanded significantly. As of August 21, 2021, GSilver has directly employed 168 people in Guanajuato, of which 167 (99.4%) are Mexican nationals, and 139 (83%) are from the state of Guanajuato.