Gatos Silver Announces Restoration of Full Grid Power at Cerro Los Gatos

Rhea-AI Summary

Gatos Silver, Inc. (NYSE/TSX: GATO) has successfully restored full power from Mexico's national grid at its Cerro Los Gatos (CLG) mine. Surface facilities and underground mining activities are now fully operational. The CLG process plant is set to resume early this week after expedited maintenance during the recent power outage. The company reports minimal impact on its mining operations due to this outage. Gatos Silver is known for its silver and zinc-rich mineral district in Chihuahua, aiming to produce 12.2 million silver equivalent ounces annually.

Positive

• Full power restored at Cerro Los Gatos mine, enabling full operational capacity.
• Minimal impact on mining and processing activities due to the power outage.
• The company has a highly prospective mineral rights package, with more than 85% yet to be drilled.

Negative

• None.

Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) is pleased to report that full power from Mexico’s national power grid has been restored at its Cerro Los Gatos (“CLG”) mine site. CLG is currently operating the surface facilities and the full complement of underground mining infrastructure and activities. The CLG process plant will resume operation early this week upon completion of the previously accelerated maintenance activities that commenced during the temporary power restriction in Northern Mexico. Given the expedited restoration of full grid power, the outage has had minimal impact on the Company’s mining and processing activities.

About Gatos Silver

Gatos Silver is a silver dominant exploration, development and production company that discovered a new silver and zinc-rich mineral district in southern Chihuahua State, Mexico. To-date, 14 zones of mineralization have been defined within the district and all are characterized by silver-zinc-lead epithermal mineralization. More than 85% of the approximately 103,087-hectare mineral rights package has yet to be drilled, representing a highly prospective and underexplored district. The Company recently built and commissioned its first operating mine and mineral processing plant at the Cerro Los Gatos deposit, which is expected to produce 12.2 million silver equivalent ounces annually.

Forward-Looking Statements

This press release contains statements that constitute “forward looking information” and “forward-looking statements” within the meaning of U.S. and Canadian securities laws. All statements other than statements of historical facts contained in this press release, including statements regarding the expected average annual production are forward-looking statements. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors described in our filings with the U.S. Securities and Exchange Commission and Canadian securities commissions. Certain forward-looking statements are based on assumptions, qualifications and procedures which are set out only in the technical report entitled “Los Gatos Project, Chihuahua, Mexico,” dated July, 2020 with an effective date of July 1, 2020 (the “Los Gatos Technical Report”) filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. Scientific and technical disclosures in this press release were approved by Philip Pyle, Vice President of Exploration and Chief Geologist of Gatos Silver who is a “Qualified Person,” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. For a complete description of assumptions, qualifications and procedures associated with such information, reference should be made to the full text of the Los Gatos Technical Report. Gatos Silver expressly disclaims any obligation or undertaking to update the forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No assurance can be given that such future results will be achieved. Forward-looking statements speak only as of the date of this press release.

Availability of Other Information About Gatos Silver

Investors and others should note that Gatos Silver communicates with its investors and the public using its company website (https://gatossilver.com/) as well as other channels, including but not limited to presentations, Securities and Exchange Commission filings, press releases, public conference calls and webcasts. The information Gatos Silver communicates through these channels could be deemed to be material information. As a result, Gatos Silver encourages investors and others interested in Gatos Silver to review the information it disseminates through these channels on a regular basis. The contents of Gatos Silver's website or other channels, or any other website that may be accessed from its website or these channels, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

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FAQ

What does Gatos Silver's restoration of power at Cerro Los Gatos mean for its operations?

The restoration of full power at Cerro Los Gatos enables the mine to operate normally, minimizing disruption to mining and processing activities.

How many silver equivalent ounces is Gatos Silver expected to produce annually?

Gatos Silver expects to produce 12.2 million silver equivalent ounces annually from its Cerro Los Gatos deposit.

What is the current status of Gatos Silver's mining operations?

Gatos Silver's mining operations are fully operational following the restoration of power and completion of maintenance activities.