Guanajuato Silver Amplifies Production 85 Percent in One Month
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Guanajuato Silver Amplifies Production 85 Percent in One Month

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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Fri, 10/07/2022 - 15:26

The Canadian Guanajuato Silver provided an update on its operations and highlighted the impact of additional production from the recently acquired Topia and San Ignacio mines. The company said it produced 267,525oz of silver equivalent (AgEq) in August 2022, an 85 percent increase from the 122,864 AgEq oz that only included production from El Cubo. 

Moreover, Guanajuato Silver reported that cash costs per silver equivalent ounce continue to decline at El Cubo, with costs declining to US$12.85/oz in July. Furthermore, these costs also remain in line with expectations of the company at US$15.09/oz in August. Silver and gold recoveries for August were up 88.9 percent and 85.6 percent respectively compared to July. The mining company forecasts to end the year at a run rate of 3.4M AgEq ounces per annum.

“Production of silver-lead-zinc concentrates from our Topia mine in the State of Durango continued uninterrupted through our integration process; refinements at both the Topia mine and plant have been initiated with planned improvements expected in the months ahead,” said James Anderson, Chairman and CEO, Guanajuato Silver. 

At the end of June, after carrying out a drilling program at the Mastranos IV tailing facility located 3km from the El Cubo mill, the company reported it found high-grade silver mineralization. Guanajuato Silver drilled 134 holes of over 2m depth in an area of 43,000m². Most of the holes presented grades higher than 250g/t of AgEq.

"We remain on track to accomplish all of our original objectives at El Cubo as we now look to our Mexican operations teams to mirror the same success at our newly acquired mining assets of San Ignacio, Valenciana, and Topia, where production activities have already begun,” added Anderson.

In 2021, Guanajuato Silver signed a definitive purchase agreement with Endeavour Silver to acquire the El Cubo Complex, which has been frequently operational for the past 200 years. After 2003, production stopped as gold prices dropped below US$400/oz.

Guanajuato ranked in 2020 as the 11th state in silver production and 10th in gold in the country. The main minerals extracted in the state are gold, silver, arsenic, copper, fluorine and lead. The total mining production of the state ensures it ranks as the sixth mining producer in Mexico, reaching approximately 5 percent of the production.

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