Guanajuato Silver Initiates Processing of Mineralized Material from El Horcon Mine

November 27, 2023

Guanajuato Silver Company Ltd.


Guanajuato Silver Company Ltd. announce the commencement of development work and the processing of mineralized material from an existing stockpile at its 100% owned El Horcon mine (“Horcon”) located approximately 60km NW of Guanajuato, Mexico.

The past producing El Horcon mine is ideally situated to become a satellite mining operation that could significantly expand Guanajuato Silver’s production profile. The El Horcon mine fits well within our strategy of further consolidating the Guanajuato mining district as we look to take advantage of the excess processing capacity of our two operating mills in the area. In addition to being able to immediately access low-cost mineralized material from the existing stockpile, we are confident that the development programs we have planned for 2024 will add value to El Horcon and allow us to rapidly advance this exciting project.

James Anderson, Chairman & CEO
El Horcon Stockpile

Starting in Mid-November, thus far the Company has shipped and processed 350 tonnes of material on a trial basis from the historical stockpile. Head grades from different batches of this material were approximately 30-50 gpt Ag and 1.6 to 3.0 gpt Au. Initial processing runs gave recoveries of approximately 70% for Ag and 82% for Au. Note: this first batch of material was taken from a higher grade area of the stockpile; future shipments are likely to be of somewhat lower grades. The Horcon stockpile is expected to add approximately 4,000 tonnes of mineralized material per month over a six-to-ten-month period. Metallurgical testing of the mineralized material at Horcon has been demonstrated compatible with the Cata mill processing circuit and is currently being blended with mineralized production from the Valenciana Mines Complex (“VMC”).

In other development work, the Company earlier re-assayed previous core samples, and conducted an extensive mapping and sampling program in advance of a diamond drill exploration program that is scheduled to commence in Q2, 2024.

Acquired as part of the purchase of Great Panther’s Mexican assets (see GSilver’s news release dated August 4, 2022 – GSilver Closes Acquisition of Great Panther’s Mexican Mining Assets), the El Horcon mining concessions cover 7,908 hectares comprising 17 contiguous mining concessions located approximately 60km to the northwest of the VMC. Mineralization at El Horcon is dominated by the regional extension of the prolific Veta Madre vein system and consists of numerous quartz-dominated gold-silver bearing veins; mineralization at El Horcon also contains significant lead and zinc values. The El Horcon mine is a past producer dating back to the 16th century, and several underground workings, tunnels, and access points are known to exist. In 2017, the previous operator established a historical inferred mineral resource that was prepared in accordance with National Instrument 43-101 of 2.0 million silver-equivalent ounces (“AgEq“) (see notes to table for silver-equivalent calculations) from 162,140 tonnes grading 3.44g/t gold, 76 g/t silver and 2.69% lead, and 3.79% zinc based on 42 drill holes and 463 underground channel samples (see table and description below – the inferred mineral resource is considered historical in nature).

1. See NI43-101 Technical Report on the Guanajuato Mine Complex Claims and Mineral Resource Estimations for the Guanajuato Mine, San Ignacio Mine and El Horcon and Santa Rosa Projects dated February 20, 2017 with an effective date of August 31, 2016; prepared for Great Panther Silver Limited by Robert Brown, P. Eng. Qualified Person & VP Exploration.


  1. US$110/tonne NSR Cut-off
  2. Silver equivalent was calculated using a 70.6 to 1 ratio of silver to gold value.
  3. Rock Density for all veins for Diamantillo is 2.77t/m³, San Guillermo 2.78t/m³, Diamantillo HW is 2.62t/m³, Natividad 2.57t/m³.
  4. Totals may not agree due to rounding.
  5. Grades in metric units
  6. Contained silver and gold in troy ounces
  7. Minimum true width 1.5m
  8. Metal Prices $18.00USD/oz silver, and $1,300USD/oz gold, and $0.80USD/lb lead.
  9. Ag eq (g/t) and AgEq (oz) use only Au, Ag, and Pb values.

The El Horcon mineral resource estimate is a historical estimate and the reader is cautioned not to treat them, or any part of them, as a current resource. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves. The mineral resource is taken from a Great Panther technical report dated February 20, 2017. However, based on the assumptions, parameters and methods in the prior technical report, as well as literature and data review the Company considers such estimate to be relevant and reliable and provides an indication of the extent of mineralization identified by previous operators at the El Horcon Mine. To verify the historical mineral resource estimate as a current mineral resource, a qualified person would need to complete database validation, undertake a full review of estimation parameters and procedures, and complete an updated mineral resource estimate and a NI 43-101 technical report incorporating additional production, drilling, sampling and resaying of core completed at El Horcon since February 2017.

About Guanajuato Silver
GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines in central Mexico. The Company produces silver and gold concentrates from the El Cubo Mine Complex, Valenciana Mines Complex, and the San Ignacio mine; all three mines are located within the state of Guanajuato, which has an established 480-year mining history. Additionally, the Company produces silver, gold, lead, and zinc concentrates from the Topia mine in northwestern Durango. With four operating mines and three processing facilities, Guanajuato Silver is one of the fastest growing silver producers in Mexico.

Technical Information
Reynaldo Rivera, VP of Exploration of GSilver, has approved the scientific and technical information contained in this news release. Mr. Rivera is a member of the Australasian Institute of Mining and Metallurgy (AusIMM – Registration Number 220979) and a “qualified person” as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

“James Anderson”
Chairman and CEO

For further information regarding Guanajuato Silver Company Ltd., please contact:

JJ Jennex, Gerente de Comunicaciones, T: 604 723 1433
E: [email protected]

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