GSilver says estimated AgEq resource up 130% at Mexico mine
Guanajuato Silver Co. Ltd. [GSVR-TSXV] has announced a news mineral resource estimate for its San Ignacio mine in Mexico.
The company said the measured and indicated silver equivalent resource (AgEq) has increased by 130% from a previous estimate, while the resources in the inferred category are up by 283%.
Guanajuato (GSilver) is a precious metals producer engaged in reactivating past producing silver and gold mines in central Mexico. The company produces silver and gold concentrates from the El Cubo Mine, Valenciana Mines Complex (VMC) and San Ignacio mine. All three 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 four operating mines and three processing facilities.
San Ignacio is a high-grade epithermal vein underground mine. Mineralized material from San Ignacio is transferred to the Valenciana Mines Complex for processing at the Cata mill.
Guanajuato says the measured and indicated resource now stands at 7.6 million ounces at 300 g/t AgEq within 790,000 tonnes, including 3.13 million ounces of silver and 53,000 ounces of gold. The inferred resource now stands at 22.16 million ounces, grading 318 g/t” AgEq within 2.16 million tonnes, including 8.9 million ounces of silver, and 158,000 ounces of gold.
“With this new resource estimate for San Ignacio, we are advancing the important work of upgrading all of our resource estimates for our four producing silver mines in Mexico,’’ said Guanajuato Chairman and CEO James Anderson.
“Because of the rapid pace of Guanajuato Silver’s growth through our mine acquisition strategy, all of our mineral resources were originally categorized as historical,’’ he said.
The new estimates were released after the close of trading on September 26, when Guanajuato shares closed at 26 cents. The shares are currently trading in a 52-week range of 65 cents and 24.5 cents.
Mineralization at San Ignacio exists within quartz and calcite veins; four distinct mineralized domains exist at San Ignacio, characterized by four primary veins: Melladito, Intermedia, Nombre de Dios, and the Purisima vein.
In addition to reinterpreting the primary vein domains, the 2023 resource estimates include mineralization from 22 additional vein domain models, contributing to a significant expansion of the mineral resources.
In the second quarter of 2023, the company reported record production of 941,338 silver equivalent ounces (AgEq) derived from 477,650 ounces of silver and 4,719 ounces of gold, 875,802 pounds of lead and 897,258 pounds of zinc.
All-in-sustaining costs (AISC) came in at US$22.47 per silver equivalent ounce (AgEq) produced an increase from $21.83 in the first quarter of 2023. This was due to the strong Mexican currency, the company said.
The company has said it is implementing a number of cost-cutting measures in a bid to offset the impact of a recent surge in the value of the Mexican peso.