Guanajuato Silver says costs fell 23% in Q1

Share this article

Guanajuato Silver Co. Ltd. [GSVR-TSXV], a company that was previously known as Vangold Mining Corp., on Friday released its financial and operating results for the first quarter of 2022, including production numbers from its El Cubo Mine Complex and El Pinguico project in Mexico.

“We remain on track to achieve all of our 2022 production objectives,’’ said GSilver CEO James Anderson. “Higher tonnage through-put of roughly 86,000 tonnes at our processing plant in the first quarter marks a significant ramp-up milestone for the company,’’ he 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.

GSilver recently acquired the El Cubo mine from Endeavour Silver Corp. (EDR-TSX, EXK-NYSE), a company that holds a 12.63% stake in GSilver.

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.

In the first quarter of 2022, GSilver reported production of 125,423 ounces of silver and 1,880 ounces of gold or 275,823 ounces of silver equivalent (AgEq). The company said its all-in-sustaining cost per AgEq fell to US$25.67 an ounce, compared to US$33.31 in the fourth quarter of 2021. This represents a 23% improvement and is in-line with company projections and expectations at this stage of the ramp-up.

GSilver reported first quarter net revenue of $6.3 million from the sale of 134,281 ounces of silver and 2,007 ounces of gold at averaged realized prices of US$23.07 per silver ounce and US$1,864.26 per ounce of gold. That was up from $4.1 million in the fourth quarter of 2021.

As of March 31, 2022, GSilver had $6.8 million in cash and working capital of $1.2 million.

On May 26, 2022, GSilver shares closed at 38.5 cents and currently trade in a 52-week range of 73 cents and 33 cents.


Share this article

Leave a Reply

Your email address will not be published.

Don't miss the

NEWSLETTER

Exclusive editorial

Breaking News

Quality Company Coverage

Expert Writers

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Resource World Magazine will use the information you provide on this form to be in touch with you and to provide updates and marketing.