Guanajuato Silver defines new high-grade gold zone at San Ignacio Mine, Mexico
Guanajuato Silver Company Ltd. [TSXV: GSVR; OTCQX: GSVRF] provided an update on exploration and development work at the company’s wholly owned San Ignacio Mine in Guanajuato, Mexico.
Highlights: High-grade veins have been intercepted at the Santo Nino zone including 8.20 metres true width grading 5.7 g/t gold and 54 g/t silver (536 g/t AgEq) and a separate 1.06 metres true width grading 28.5 g/t gold and 164 g/t silver (2,585 g/t AgEq) in UGSI25-007; 2.34 metres true width grading 4.9 g/t gold and 165 g/t silver for 579 g/t AgEq in UGSI25-006 and 4.46 metres true width grading 2.2 g/t gold and 99 g/t silver for 287 g/t AgEq in UGSI25-009.
The intercepts highlight a new gold-rich zone within the Santo Nino area at San Ignacio. Development work has been initiated to access these high-grade gold areas for development in 2025.
James Anderson, Chairman & CEO, said, “With these exceptional results from San Ignacio in hand, we have already begun the engineering and preparatory work that will allow for rapid exploitation of this potentially rich mining zone that sits entirely outside of our official resource estimates. We expect to be mining this new area within three months’ time; thereby showcasing our ability to act quickly when special opportunities arise and, in the process, demonstrating our outsized leverage to precious metals’ prices.”
As previously announced, Guanajuato Silver completed work on the 430 Ramp earlier this year. The new ramp opened access to the Santo Nino Vein, which is one of the larger veins that sit within the highly productive La Luz structure; this multi-pulse mineralized system has a known strike length of over 8km. The La Luz structural system also feeds Endeavour Silver’s nearby Bolanitos Mine, which produced 452,627 ounces of silver and 25,230 ounces of gold in 2024.
San Ignacio Drilling: The company initiated a phase one diamond drilling campaign in early 2025 with the objective of expanding existing resources and identifying new resource opportunities within the western (Santo Nino) and eastern (Melladito and Nombre de Dios) areas at San Ignacio. Nine underground holes have been completed to date, representing approximately 1,000 metres of drilling, the results of which are presented below. These holes have been drilled using one of the company’s four in-house drill rigs.
Drillholes 1 through 5 were drilled to the east towards the Nombre de Dios and Melladito areas. Drillholes 6 through 9 were drilled to the west towards Santo Nino.
Mining is currently occurring within the western zones of San Ignacio. The mineralization highlighted within the tables above is within proximity to existing infrastructure and the company expects to expedite development to these zones so that they can be sequenced for extraction in 2025.
The San Ignacio Mine is located within the Guanajuato Mining District, approximately 10 km northeast of GSilver’s Valenciana Mines Complex (VMC). Mineralized material that is mined from San Ignacio is trucked over sealed roads to VMC for processing at the Cata Mill. Mineralization consists of low-sulphidation epithermal gold-silver fissure veins, breccias, and stockwork zones that occur within the northwest-southeast aligned La Luz structural zone.
The company also announces that NucTech Mexico, S.A. de C.V. has commenced litigation in Mexico City, Mexico against the company. NucTech alleges that the company has not compensated it for the installation and use of NucTech’s mineral sorting equipment at the company’s San Ignacio mine in Guanajuato, Mexico and is claiming compensation for future equipment rentals over a 10-year period.
The company believes that the litigation has no merit, and the company will vigorously defend itself. The amounts claimed do not have any supportable basis and the company will pursue all legal options to protect its interests and will seek to recover legal and other costs from NucTech.
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, and the San Ignacio Mine; all three mines are located within 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. Guanajuato Silver has four operating mines and three processing facilities, making it one of the fastest growing silver producers in Mexico.