Guanajuato Silver Co. Ltd. [GSVR-TSXV] said Wednesday it has discovered high-grade gold and silver material in a historical tailings area at the company’s 100%-owned El Cubo mine complex in Guanajuato, Mexico.
The company said a 43,000 square metre, 1.0-meter to 1.5-metre-thick layer of high-grade surface material has been identified from a retired tailings facility named Mastrantos IV.
It said 134 shallow drill holes, covering 220.5 drilled metres were completed at Mastrantos IV this year. Highlight results include hole #164, which returned 727 g/t silver equivalent (AgEq) over 4.0 metres and hole #166, which returned 711 g/t AgEq over 1.0 metre.
The holes probed to an average depth of 2.0 metres.
Over 95% of the drill holes encountered significant mineralization, the company said in a press release. It said the majority of this mineralization exists as free-gold, GSilver has tested several different gravitational separation procedures in order to extract the gold and silver from this material. “Final assessment on the exact method the company will used to process this material wlll be decided upon shortly,’’ the company said.
Guanajuato Silver (also known as GSilver), is an exploration and development company engaged in reactivating past-producing silver and gold mines near the city of Guanajuato, Mexico.
El Cubo is a 480-year-old underground gold-silver mining complex which is located in El Cubo village, approximately 10 kilometres east of Guanajuato city. The complex has historically produced roughly 2.0 million ounces of gold and 80 million ounces of silver, but has been closed since November, 2019.
Prior to the El Cubo deal, GSilver’s flagship asset was the El Pinguico Project, an historic silver and gold mine that is located in Guanajuato and was in production in the late 1880s until 1913. Covering 71 hectares and comprised of two mining concessions – El Carmen and El Pinguico – the project is close to several active mining operations, including Endeavour’s El Cubo and Bolanitos mine and mill complexes.
The company has been focused on the refurbishment of the El Cubo mill, and swift commencement of production from El Cubo and El Pinguico Combined Operation, as well as delineating additional gold and silver resources through underground and surface drilling on its projects in this historic mining camp.
“Our intention is to add additional silver and gold concentrate production through an independent gravity separation circuit,’’ said GSilver Chairman and CEO James Anderson. “This will allow us to expand overall production at El Cubo without interfering with the regular flow of material through our processing facility,” Anderson said.
On June 21, 2022, GSilver shares closed at 37.5 cents and currently trade in a 52-week range of 72 cents and 33 cents.