Gatos Silver Reports Q1 2024 Production Results at Top End of Guidance

VANCOUVER, British Columbia, April 09, 2024 (GLOBE NEWSWIRE) -- Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) today announced production results for the quarter ended March 31, 2024 at its 70%-owned Cerro Los Gatos (“CLG”) mine in Mexico.

Dale Andres, CEO of Gatos Silver, commented: “The CLG mine delivered another strong quarter of operational results. Mill throughput for the quarter was more than 3,200 tonnes per day, an increase of 11% from the first quarter of 2023, and another quarterly record. Silver equivalent production for the quarter was at the top end of guidance with the higher throughput offsetting lower grades for silver, lead and gold as expected in the mine plan.”

“We made good progress on mine debottlenecking and productivity improvements as we continue to advance towards our medium-term target to sustain throughput rates of 3,500 tonnes per day. We are also progressing our life extension opportunities beyond 2030, with an updated life of mine plan expected in the third quarter of 2024 and increased exploration efforts on near mine targets in the Los Gatos district during the quarter.”

Production Results (100% basis)

CLG comparative production highlights are summarized below:

	Three Months Ended March 31,
CLG Production (100% Basis)	2024	2023
Tonnes milled (dmt)	292,114	260,428
Tonnes milled per day (dmt)	3,210	2,894
Feed Grades
Silver (g/t)	284	329
Zinc (%)	3.99	3.93
Lead (%)	1.77	1.86
Gold (g/t)	0.28	0.30
Contained Metal
Silver ounces (millions)	2.37	2.43
Zinc pounds - in zinc conc. (millions)	15.8	14.0
Lead pounds - in lead conc. (millions)	10.1	9.5
Gold ounces - in lead conc. (thousands)	1.39	1.38
Silver Equivalent ounces (millions)1	3.70	3.69
Recoveries
Silver - in both lead and zinc concentrates	88.8%	88.3%
Zinc - in zinc concentrate	61.4%	62.2%
Lead - in lead concentrate	89.2%	88.6%
Gold - in lead concentrate	52.0%	55.3%

_{¹ For 2024, silver equivalent production is calculated using prices of $23/oz silver, $1.20/lb zinc, $0.90/lb lead and $1,800/oz gold to “convert” zinc, lead and gold production contained in concentrate to “equivalent” silver ounces (contained metal, multiplied by price, divided by silver price). For 2023, silver equivalent production was calculated using prices of $22/oz silver, $1.20/lb zinc, $0.90/lb lead and $1,700/oz gold. For comparative purposes, the calculated silver equivalent production for the three months ended March 31, 2023 would be 3.64 million ounces using price assumptions for 2024.}