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Guanajuato Silver restarts Cata mill at Valenciana mines complex in Mexico

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(Kitco News) - On Tuesday, Guanajuato Silver (TSXV: GSVR) announced that the Cata mill has commenced precious metals processing at the company's wholly-owned Valenciana mines complex ("VMC") in Guanajuato, Mexico.

The company said it intends to start processing at a run-rate of approximately 8,000 tonnes per month with the goal of ramping up to 20,000 tonnes per month by year end; full capacity at the Cata mill is 36,000 tonnes per month.

GSilver plans to operate the Cata mill with production from both VMC and the San Ignacio mine and anticipates achieving initial metallurgical recoveries in the 83%-85% range for silver and gold.

Chairman and CEO James Anderson commented, "With the Cata mill now operational, Guanajuato Silver adds a third processing facility to our growing inventory of operating assets. The Cata mill is the last major asset acquired as part of the 2022 transaction with Great Panther to be placed back in service. With four operating silver mines and three production plants, we remain one of the fastest growing silver producers in Mexico."

In November 2021, the Cata mill was put on care and maintenance by the previous operator due to a lack of tailings capacity. In response, the company said it intends to backfill tailings underground using a hydraulic fill system that will make use of select voids and open stopes that have been created at VMC over the past 450 years of underground mining.

"The hydraulic fill system will not only provide VMC with additional tailings capacity, but the process also represents a more environmentally benign approach to tailings management,” the company said in a statement.

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, Valenciana mines complex, and the San Ignacio mine. Additionally, the company produces silver, gold, lead, and zinc concentrates from the Topia mine in northwestern Durango.

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