Investor Alert

May 5, 2022, 8:02 a.m. EDT

GSilver Drills 2,988 GPT AgEq Over 0.35m Estimated True Width at El Cubo

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May 05, 2022 (ACCESSWIRE via COMTEX) -- Reports Successful Drilling from Three Different Guanajuato Areas

VANCOUVER, BC / ACCESSWIRE / May 5, 2022 / Guanajuato Silver Company Ltd. (the "Company" or "GSilver") /zigman2/quotes/204220482/delayed CA:GSVR -3.33% (otcqx:GSVRF) is pleased to report drill results from its ongoing exploration programs at the Company's wholly owned El Cubo Mine Complex and El Pinguico project in Guanajuato, Mexico.

Highlights from Recent Drilling at the Company's Guanajuato properties:

  • Hole VP022-002: 1,956 grams per tonne (gpt) Ag and 12.90 gpt Au for 2,988 gpt AgEq over 0.55m (0.35m est. true width) from the Villalpando vein, at the Capulin area, at El Cubo.

  • Holes SC22-001 and SC22-002: 42 gpt Ag and 7.56 gpt Au for 647 gpt AgEq over 0.35m (0.3m est. true width) in hole SC22-001 and 276 gpt Ag and 4.49 gpt Au for 636 gpt AgEq over 0.30m (0.13m est. true width) and 194 gpt Ag and 2.60 gpt Au for 402 gpt AgEq over 0.55m (0.30m est. true width) in hole SC22-002from the ‘680' vein, and the Tuberos and Poniente veins, respectively, at the Santa Cecilia area, at El Cubo.

  • Hole P21-22: 227 gpt Ag and 2.11 gpt Au for 396 gpt AgEq over 1.5m (0.60m est. true width) and 193 gpt Ag and 1.15 gpt Au for 285 gpt AgEq over 0.6m (0.24 m est. true width) from the Arroyo vein and El Pinguico vein, respectively, at the El Pinguico project.

" These results serve to build confidence in our understanding of geological controls of high-grade mineralisation within the various veins and different zones of our Guanajuato mine holdings. Further, drilling at the El Cubo mine continues to identify mineralisation that the Company can quickly build into its near-term mining plans ," commented James Anderson, Chairman and CEO of Guanajuato Silver.

GSilver continues infill and expansion drilling at the El Cubo Mine targeting the Villalpando, Asuncion, Tuberos and ‘680' veins at the Villalpando and Santa Cecilia areas; in parallel, GSilver is continuing exploration at the El Pinguico project targeting the Arroyo and Pinguico veins. From late January to end of March 2022, a total of 3,130 meters in 14 holes were drilled from underground at the Guanajuato properties.

The drill results announced today include the last two holes drilled at El Pinguico in 2021, and six of the 14 diamond drillholes drilled so far this year. The Company is reporting results for a total of eight drill holes from the three areas.

Villalpando Exploration

Drilling at the Capulin area of El Cubo, targeting the Villalpando and Asuncion vein structures, has been very successful. Overlooked by previous operators, this area boasts ample development work with easy access to newly defined mineralised material. The Asuncion vein occasionally exhibits bonanza grades as highlighted by VPO22-002, which returned over 95 troy ounces of silver-equivalent over an estimated true width of 0.35 metres. At Capulin, drill holes VPO22-04 and VPO22-05 have been drilled and are out for assay. Drilling remains ongoing in this area.

Figure 1: Capulin Area, El Cubo Mine

Capulin Area, El Cubo Mine
Hole Structure From To Interval Est. True Width Au Ag AgEq
(m) (m) (m) (m) (gpt) (gpt) (gpt)
? 100.70 101.35 0.65 0.32 0.39 120 151
VPO22-001 Asuncion 125.05 125.55 0.50 0.28 0.21 103 119
? 141.70 143.30 1.60 0.76 0.11 107 116
Villalpando 164.20 232.85 68.65 7.89 0.27 29 50
including 164.20 165.90 1.70 0.17 0.54 70 113
including 173.80 175.05 1.25 0.13 0.42 81 115
including 189.25 196.45 7.20 0.72 0.53 65 107
including 199.75 200.70 0.95 0.10 0.95 86 162
including 209.25 210.10 0.85 0.09 0.49 84 124
including 220.95 225.70 4.75 0.48 0.67 63 117
including 228.80 229.85 1.05 0.11 0.98 114 194
Capulin Area, El Cubo Mine
Hole Structure From To Interval Est. True Width Au Ag AgEq
(m) (m) (m) (m) (gpt) (gpt) (gpt)
VPO22-002 Asuncion 81.00 81.55 0.55 0.35 12.90 1,956 2,988
Villalpando 141.70 171.05 29.35 13.55 0.21 31 47
including 151.30 154.35 3.05 1.15 0.76 115 176
including 156.05 159.75 3.70 1.28 0.53 69 111
Villalpando FW 175.45 176.15 0.70 0.39 0.44 92 127
VPO22-003 Villalpando 169.50 170.70 1.20 0.44 0.15 89 101
Villalpando 172.65 174.75 2.10 0.82 0.56 111 156
Villalpando 178.20 178.70 0.50 0.17 1.50 24 143
Villalpando 181.15 181.70 0.55 0.19 0.60 91 139

Santa Cecilia Exploration and Development

Drilling in the Santa Cecilia area of El Cubo targets numerous vein structures; these include ‘680', Tuberos, Poniente, and the northern extension of Villalpando. In this area, productive veins are often perpendicular (transverse) to the regional NW structure and frequently carry proportionally higher gold content.

As mine production in the Santa Cecilia area continues to take on a more important role within GSilver's El Cubo mining strategy, and in view of the area's important grade potential, the decision has been made to join the southern Villalpando area with the northern Santa Cecilia area at depth. With only approximately 150m of development tunnelling to complete before this connection is made, management estimates that the work necessary for this task will take only approximately 6 to 8 weeks. Upon completion, haulage trucks, which currently need to travel on gravel roads for 6.7km from Santa Cecilia to our processing plant, will now need only to travel 2.5km within the mine; thereby reducing fuel costs, tire wear, and road maintenance costs significantly and immediately.

At Santa Cecilia, drill holes SC22-03 to SC22-08 have been drilled and are out for assay. Drilling at Santa Cecilia, an area that was largely discounted by previous operators, remains ongoing.

Figure 2: Santa Cecilia Area, El Cubo Mine

Santa Cecilia Area, El Cubo Mine
Hole Structure From To Interval Est. True Width Au Ag AgEq
(m) (m) (m) (m) (gpt) (gpt) (gpt)
SC22-01 680 Vein 72.90 73.25 0.35 0.30 7.56 42 647
SC22-02 Tuberos Vein 131.60 131.90 0.30 0.13 4.49 276 636
Poniente Vein 172.55 173.10 0.55 0.30 2.60 194 402

Commenting on these results, James Anderson added, " The gold-bearing transverse veins at Santa Cecilia are demonstrative of the numerous opportunities that exist at El Cubo where we can take advantage of rich mineralization that was largely overlooked in recent years. Remarkably, we are already producing precious metals concentrate from backfill and stacked material that was previously left behind at Santa Cecilia. Evidence of additional similar transverse veins are present throughout El Cubo, and we expect that these systems will form a major component of our mining operations into the future ."

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Nov. 25, 2022 3:56p
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