GSilver completes underground connection of two Mexico mines

Guanajuato Silver Co. Ltd. [GSVR-TSXV] has completed a 267-metre-long underground production ramp connecting its San Ignacio and Bolanitos mines in Mexico. The company said this new ramp is expected to result in lower operating costs, better haulage rates and improved ventilation between the two operations. The establishment of direct underground access between San Ignacio and Bolanitos is one of the first major milestones of the full integration between these two operations.

GSilver shares advanced on the news, rising 6.9% or $0.025 to 38.5 cents. The shares trade in a 52-week range of $1.15 and 30.5 cents.

GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines in central Mexico.  Bolanitos is the company’s fifth producing precious metals mine. GSilver acquired the asset, which is adjacent to its San Ignacio mine, from Endeavour Silver Corp. [EDR-TSX] in January 2026.

Prior to the acquisition of Bolanitos, the company was producing silver and gold concentrates from the El Cubo Mine, Valenciana Mines Complex (VMC) and San Ignacio mine. All of those mines are located in 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. The portfolio includes five operating mines and related processing facilities.

San Ignacio is a high-grade epithermal vein underground mine. At the time that the asset was acquired, GSilver said the Bolanitos flotation plant was under-utilized and has significant capacity for increased throughput and production.

In May, 2026 after considerable detailed engineering and preparation, the company commenced construction of the 257-metre four-metre by 4.5 metre ramp connecting San Ignacio to the Lucero mine, which is currently located within the Bolanitos mine complex at the northern boundary of San Ignacio. Work on the new ramp broke through, connecting the San Ignacio and Lucero areas ahead of schedule on September 30, 2026.

The ramp is expected to significantly improve access and cut haulage times from San Ignacio to the processing facility at Balanitos. Furthermore, the development of a loading pocket for mineralized material at San Ignacio will help reduce the number of transfer points and allow for the use or larger haulage equipment from the Bolanitos operation, thereby reducing operating complexity and costs.

“The completion of this connection tunnel is the first of many synergistic improvements that are planned as we move forward with a combined operation at the Bolanitos mines complex, which will include San Ignacio,’’ said Rick Trotman, senior vice-president, mining operations at GSilver. “As we move towards the end of the year, we will continue to methodically interconnect these operations with respect to the creation of a combined geologic model, updated resources and reserves, a full property-wide exploration plan, 2027 mine forecasts and a new life of mine model,’’ he said. The amalgamation of San Ignacio into the Bolanitos mines complex has always been our plan, and now the two mines are connected underground.