Guanajuato Silver Discovers New Vein at El Cubo

The Canadian company Guanajuato Silver published the drill results of the Villalpando area at the El Cubo mine. It confirmed the discovery of a new transverse vein, which it christened San Luis. Although previous operators had identified the vein, it was heretofore not exploited nor explored, leaving the extent of the mineralization unknown.

The San Luis vein is perpendicular to the primary regional north-west Villapando and Dolores mineralized vein structures and is expected to carry a proportionally higher gold content. Recent drilling confirmed the continuity of the vein and its mineralization might be easily accessed from several adits and ramps. Moreover, 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. 

"Economic success of our operations is driven by grade, and the identification of another gold-rich transverse vein that can rapidly enhance our mining schedule further demonstrates the considerable potential remaining at El Cubo. With almost 200 years of mining history behind it, El Cubo is ready to begin a new chapter of growth as the centerpiece of our hub & spoke strategy in Guanajuato," said James Anderson, Chairman and CEO, Guanajuato Silver. 

Recently, the company reported total production of 155,912oz of silver and 2,161oz of gold, for a total of 337,760oz silver equivalent. Guanajuato Silver reported that in 2Q22, 94,212 tons were milled at El Cubo, an average rate of approximately 30,000t/m, which is below El Cubo’s maximum milling capacity of over 45,000t/m. Therefore, El Cubo has abundant capacity available to accommodate added mineralized material.

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.

In 2020, Guanajuato ranked as Mexico’s 11th state in silver production and 10th in gold. 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 largest mining producer in Mexico, reaching approximately 5 percent of the production.