Gatos Silver, Inc. Provides 2020 Cerro Los Gatos Operating Update Encompassing Its Final Commissioning Phase and Inaugural Full Year of Production
January 19, 2021 at 12:00 pm
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Gatos Silver, Inc. provided 2020 Cerro Los Gatos operating update encompassing its final commissioning phase and inaugural full year of production. During 2020, the CLG mine achieved steady improvement in its mining rates reaching 2,324 tonnes/day of production by year-end despite a Mexican government emergency health declaration and mandated temporary suspension in April and May. While CLG was able to adopt effective COVID-19 prevention protocols, mining activities were suspended until sufficient testing capabilities were implemented for the large mining labor complement. Mining activities resumed in early June 2020 and daily production progressively increased with COVID-19 prevention protocols fully implemented. Mine development was not impacted by the temporary suspension and has consistently exceeded plan since the initial commissioning of CLG. By the end of 2020, the mine had achieved just under 16,000 meters of development in the NW and Central Zones, providing ample ore access to maintain mining rates. The CLG processing facility is highly automated and recommissioned quickly following the COVID-19 temporary suspension. Prior to the suspension, the processing facility had already demonstrated an ability to achieve its 2,500 tonne/day design processing rate. Post suspension, the plant throughput was controlled to match production from the mine. During 2020, the processing team focused on achieving high-quality concentrate and by year-end, average metal recoveries exceeded plan for the four payable metals. During 2020, CLG produced 4.2 million silver ounces in concentrate, 34.2 million zinc pounds in zinc concentrate, 27.4 million lead pounds in lead concentrate and 4.9 thousand gold ounces in lead concentrate. In December 2020, Gatos Silver and its Los Gatos Joint Venture partner, Dowa Metals & Mining Co. Ltd., commenced a 27,000-meter exploration program to convert CLG’s established 3.2 million tonnes of inferred resources to the measured and indicated category and to discover additional resources along the northwest and southeast extensions of the CLG deposit. The LGJV also intends to reactivate Los Gatos District exploration in early 2021, starting with the Esther resource located four kilometers from CLG. During the first quarter of 2021, Gatos Silver will begin a 5,400-meter exploration program on its wholly-owned Santa Valeria project. The Santa Valeria target has been developed through regional geologic work by Gatos Silver’s exploration team, which defined a large basin structure hosting the mineralization zones that reside within the LGJV land package. Santa Valeria is geologically comparable to CLG and may contain similar mineral content. The commencement of this extensive program reaffirms Gatos Silver’s commitment to create value through advancement of its exceptional assets. The multiple prospective zones of identified mineralization located in the highly prolific Los Gatos District position the Company to add substantial new resources on the extensive LGJV mineral rights package and its 100%-owned mineral rights at Santa Valeria. Gatos Silver expects to extend its historical exploration success by identifying additional areas of mineral endowment and further upgrading the existing resources.
Gatos Silver, Inc. is a silver exploration, development, and production company, which is focused on high-grade, large silver deposits in geopolitically stable jurisdictions. The Companyâs flagship asset is the Los Gatos District, including the Cerro Los Gatos Mine in Chihuahua, Mexico. The Companyâs Cerro Los Gatos Mine is located approximately 120 kilometers south of Chihuahua City in the heart of Mexicoâs silver belt. The Companyâs Los Gatos District consists of approximately 14 mineralized zones, including three identified silver-lead-zinc deposits: the Cerro Los Gatos Mine, the Esther deposit, and the Amapola deposit. The other 11 mineralized zones, with over 150 kilometers of outcropping quartz and calcite veins, have at least one mineralization intercept. The Cerro Los Gatos Mine includes approximately 103,000 hectares of mineral rights.