Guanajuato Silver Corrects PEA Information

Canadian company Guanajuato Silver stated that its Preliminary Economic Analysis (PEA) presented in June contained incorrect information. Consequently, it has updated its analysis and resource estimates for its El Cubo complex in Mexico.

The company noted that the incorrect information in the PEA was the number of contained gold ounces for the inferred resource at El Cubo, which should be 124,400oz and not 129,900oz. Guanajuato Silver emphasized that the typographical error was only found in the 2023 PEA tables, stressing that it did not impact any other metrics or analysis presented in the 2023 PEA.

James Anderson, President and CEO, Guanajuato Silver, reported that the new PEA estimates a six-year mine life for El Cubo. "Our goal is to continually increase mineral resources through exploration and drilling to finish each year with 125% of total resources. If we achieve this, we believe El Cubo can remain a significant silver producer for decades to come," said Anderson.

In 2021, Guanajuato Silver signed a definitive purchase agreement with Endeavour Silver to acquire the El Cubo complex, which has been intermittently operational for the past 200 years. After 2003, production stopped as gold prices dropped below US$400/oz. As of December 31, 2022, the remaining mineral resources at El Cubo were 0.45 million t of indicated resources and 1.36 million t of inferred resources.

In 2022, Guanajuato Silver confirmed the discovery of a new transverse vein, which it christened San Luis. Although previous operators had identified the vein, it was previously not exploited nor explored, leaving the extent of the mineralization unknown. According to the company, the vein could develop into a gold-rich vein system and grow similar to the Santa Cecilia area, which has become the largest source of high-grade material at El Cubo. 

Guanajuato Silver is a precious metals producer engaged in the reactivation of past producing silver and gold mines in Mexico, especially in the state of Guanajuato where it holds the VMC, El Cubo and San Ignacio mines, as well as the Topia mine in Durango.