Guanajuato Silver says Cata mill restarts at Mexican mines complex

(Alliance News) - Guanajuato Silver Co Ltd on Tuesday said the Cata mill restarted precious metals processing at the company's wholly-owned Valenciana mines complex in Guanajuato, Mexico.

The Mexico-focused precious metals producer said commissioning of the Cata mill began during the final week of December, with mineralised material coming from Valenciana and the San Ignacio mine.

It intends to start processing at a run-rate of around 8,000 tonnes per month, aiming to reach 20,000 tonnes per month by the year-end. The full capacity of the Cata mill is 36,000 tonnes per months.

Guanajuato Silver said the Cata plant is in excelling working order and comprises three ball mills and a two-stage crushing system. No significant capital expenditure was required prior to restart, it added.

It plans to operate the Cata Mill with production from both Valenciana and San Ignacio, hoping to achieve initial metallurgical recoveries in the 83% to 85% range for silver and gold.

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, Guanajuato Silver said it intends to backfill tailings underground using a hydraulic fill system. This will make use of select voids and open stopes that have been created at Valenciana over the past 450 years of underground mining.

It added 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.

"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," said Chair & Chief Executive Officer James Anderson.

Shares in Guanajuato Silver closed flat to 26.00 pence each in London on Tuesday.

By Greg Rosenvinge, Alliance News reporter

Comments and questions to [e-mail]

Copyright 2023 Alliance News Ltd. All Rights Reserved.