GSilver Begins Drilling at El Cubo Provides Update on Mill Reopening - Seite 2

COO Hernan Dorado commented: "We are especially proud of the large number of local people we have employed. Many are graduates of the University of Guanajuato, which is one of Mexico's top geology, mine engineering, and metallurgical schools."

General Update of Operations:

Mining continues at El Cubo, with blasting having commenced on August 20, 2021. Mineralised material continues to be stockpiled in the El Cubo lay down yard, near the processing plant, in anticipation of the imminent restart of milling. It is estimated that approximately 6,000 tonnes of mineralised material are now stockpiled at El Cubo awaiting processing.

Pre-commissioning of the plant's primary crusher took place on August 25^th (click for video). The primary crusher performed very well, achieving throughput of 160 tonnes per hour. New ball mill liners for the Company's three ball mills arrived the same day. Installation of these liners, pre-commissioning of the secondary and tertiary crushers, as well as the installation of additional pumps and upgraded lubricating systems are all tasks necessary prior to the plant re-commencing operations which the Company continues to forecast for Q4, 2021.

Update on Pingüico Drilling:

Diamond drilling continues at GSilver's El Pingüico project, located 8km from El Cubo. Drilling is ongoing using the Company's Ingetrol 75E diamond drill. To date, the Company has reported results from 10 holes drilled since February 2021 (see highlights and long section below). GSilver is currently drilling P21-19; however results from assay offices in Mexico have been slow to arrive over the past several months. The Company will report additional results when received and fully interpreted by GSilver geological staff.

The long section below shows the completed holes in red, proposed holes in blue, and the current hole in green. The area being drilled was overlooked by historic miners 110 years ago because it did not meet the very high cut-off grades of that time. Improved mining methods allow the extraction and processing of much lower grades today. This area is easily accessible by the Company's drill and drill crews, and drilling continues to show good grade and excellent continuity along the El Pingüico and San Jose vein structures. The Company anticipates this proposed drilling will be completed in January 2022, at which point GSilver will decide if it is appropriate to engage a third-party engineering firm to prepare a NI 43-101 resource estimate in this area.