Gatos: CLG mine Q4 average mill throughput 3,000 tonnes per day plus

Gatos Silver announced production results for the quarter and year ended December 31, 2023 at its 70%-owned Cerro Los Gatos mine in Mexico. Silver production and silver equivalent production were both near the top end of the 2023 guidance range, even after taking into account an upward guidance revision in November 2023. Dale Andres, CEO of Gatos Silver, commented: “The CLG mine performed very well during the fourth quarter and full year 2023. The operation achieved another record for mill throughput, with a quarterly average higher than 3,000 tonnes per day during the fourth quarter. This was the fourth consecutive quarterly increase in mill throughput rate, partially offsetting the expected lower grades of ore mined in 2023 compared with 2022. We are very encouraged by recent mill throughput tests, which indicate that 3,500 tonnes per day is possible without significant capital investment. We are also continuing to evaluate mill expansion options up to 4,000 tonnes per day in conjunction with further mine life extension opportunities.” Silver equivalent production is calculated using prices of US$22/oz silver, US$1.20/lb zinc, US$0.90/lb lead and US$1,700/oz gold to “convert” zinc, lead and gold production contained in concentrate to “equivalent” silver ounces…Due to the continued strong performance of CLG during 2023 and changes to mine plan sequencing, Gatos Silver increased production guidance for silver and silver equivalent on November 6 from the original levels provided on February 23 Production guidance for zinc, lead and gold did not change after February 23, 2023. Gatos Silver expects to provide annual production and cost guidance for 2024 toward the end of February….silver production of 9.21M ounces and silver equivalent production of 14.33 M ounces were both close to the high end of upwardly revised guidance. For metals with no guidance change during 2023, lead production of 38.9M pounds was close to the high end of guidance, zinc production of 57.3M pounds was slightly higher than the low end of guidance, and gold production was slightly below guidance.