Gatos Silver achieves record quarterly production, shares up

During the quarter, the CLG mine achieved throughput of 234,985 tonnes and continued to achieve excellent recoveries for silver, lead, zinc and gold. CLG remains on target to achieve its annual guidance for 2022, including the plans to increase plant throughput levels to 2,700 tpd in the second half of 2022.

Meanwhile, company has signed a definitive agreement with its JV partner, Dowa Metals & Mining, to build and operate a new leaching plant to reduce fluorine levels in all zinc concentrates produced. The construction cost is estimated at US$6 million.

CLG is one of three silver-lead-zinc deposits identified by Gatos within Mexico’s Los Gatos district, 120 km south of the city of Chihuahua, and is the company’s first commercially producing mine. Lead and zinc concentrate shipments commenced in September 2019, achieving commercial production levels by the end of that year.

Elsewhere in the silver and zinc-rich mineral district, Gatos is also seeking to advance the Esther and Amapola deposits, as well as 11 other mineralized zones.

The Esther deposit contains 460,000 tonnes of indicated resources at average grades of 133 g/t silver, 0.04 g/t gold, 0.02% copper, 0.7% lead and 2.1% zinc, while Amapola has 250,000 million tonnes of indicated resources at average grades of 135 g/t silver, 0.1 g/t gold, 0.02% copper, 0.1% lead and 0.3% zinc.

Shares in Gatos Silver rose 7.6% by 11:50 a.m. ET, giving the Mexico-focused silver producer a market capitalization of $420.3 million.