Historic High-Grade Mine Gets Green Light to Resume Operations

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Wednesday, August 6, 2025

Mexico's mining sector continues to attract international attention as precious metals producers capitalize on elevated silver and gold prices. With silver trading near multi-year highs and gold maintaining strong support above $3,200 per ounce, mining companies with established infrastructure and proven deposits are positioned to benefit from favorable market conditions in some of the world's most prolific mining regions.

Shares of Guanajuato Silver Company Ltd. (TSX-V: GSVR) (OTCQX: GSVRF) are moving higher today following the announcement that the company has received a key development permit for its Pinguico mine project in central Mexico's historic Guanajuato district. The General Use Explosives Permit from Mexico's Ministry of Defense allows the company to restart underground development work at what was once the region's highest-grade gold-silver mine from 1890 to 1913.

The permit enables Guanajuato Silver to recommence drifting along the mineralized San Jose vein structure toward Pinguico's historic underground stockpile in Q4 2025. This stockpile represents significant tonnage of potentially low-cost mineralized material located within 10 kilometers of the company's existing El Cubo processing facility. The development team plans to access and extract additional historic mineralized backfill within the mine, which management believes is economic at current precious metals prices.

Economic mineralization encountered during the development work will be processed at the nearby El Cubo plant, with revenues expected to partially offset the 2025/2026 underground development program costs. The company has already advanced over 75 meters from the adit entrance with a 4m x 4m fully serviceable crosscut before operations were suspended in December pending permit renewal. Approximately 500 meters of additional development work remains to access the stockpiled material.

Previous exploration work by Guanajuato Silver has returned impressive high-grade results that support a planned 2026 underground exploration drilling program. Notable intercepts include 5.96 g/t gold and 476 g/t silver for 953 g/t silver-equivalent over 0.90 meters from the El Pinguico vein structure, demonstrating the continued potential for new mineralized shoots within the multiple vein systems.

"We are excited to restart work at our Pinguico mine," commented James Anderson, Chairman & CEO. "The timely granting of this explosives permit allows underground development to restart at what was once the Guanajuato district's highest-grade mine. This permit was obtained several months earlier than anticipated and we congratulate our permitting and government liaison teams for achieving this welcomed milestone."

Canadian shares of GSVR are up 3.1% at C$0.32 in morning trading Wednesday, while U.S.-listed shares of GSVRF are up 6.7% at $0.239.

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