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Porvenir Mine Entrance
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Santa Cruz Mine Area
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Entrance to the Porvenir Mine
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20 Tonne Underground Truck
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Scoop Tram
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Mine Tractor and Driver
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Underground at the Porvenir Mine
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Miners
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Drilling at the Mine Face with the Jumbo - Porvenir
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Drilling Ore at the Mine Face with Jackleg
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Guanacevi Process Plant
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The Guanacevi Plant
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800 tpd Ball Mill
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One of the 100 tpd Ball Mills
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Maintenance Shop
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Conveyor with Crushed Ore
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General Flotation Circuit for Lead-silver Concentrates
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Pouring Dore Silver Bars
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:Show image 'The Finished Product - Dore Bars approx. 97% Pure Silver' in New Window:
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The Finished Product - Dore Bars approx. 97% Pure Silver
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Each Bar Weighs About 25 Kilos (55 lbs)
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New Tailings Facility
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Lab Manager and Colleague Beside the Assay Furnace



    Click Here to View Molten Silver Being Poured at Guanacevi
    Click to view our Satellite Tour
    Click to view Guanacevi NI 43-101 Report

  • Production

    YEAR

    SILVER (oz)

    GOLD (oz)

    SILVER EQUIV. (oz)

    2008

    1,853,000

    3,845

    *2,141,000

    2007

    1,910,000

    3,957

    **2,128,000

    2006

    1,350,000

    2,493

    **1,487,000

    2005

    950,000

    2,332

    **1,078,000

    2004

    350,000

    650

    ****385,000

    *Gold converted to silver at a 75:1 ratio
    **Gold converted to silver at a 55:1 ratio

  • Production Costs - Cash costs were US$ 7.37 per ounce (net of gold credits) in Q4 2008, down from previous quarters. The target is to continue to reduce cash costs to the US$7.00 range.

  • Reserves & Resources (as of Dec 31, 2008)

    Reserves Proven & Probable
    Description Tonnes Ag
    gpt
    Au
    gpt
    Ag-Eq
    gpt
    Ag
    oz
    Au
    oz
    Ag-Eq
    oz
    Proven
    Guanacevi 57,000 361 0.49 398 661,600 900 729,100
    Total Proven 57,000 361 0.49 398 661,600 900 729,100
    Probable
    Guanacevi 478,000 352 0.49 389 5,410,200 7,500 5,972,700
    *Cut-off grade for Proven & Probable Resources for Guanacevi is 270g/t Ag for Porvenir and 230 g/t Ag-Equivalent for Guanajuato
    **Silver-Equivalencies are calculated using a 75:1 ratio based on prices of USD$12 per ounce of silver and USD$900 per ounce of gold; no base metal credits are used for calculating silver-Equivalencies

    Resources Indicated
    Description Tonnes Ag
    gpt
    Au
    gpt
    Ag-Eq
    gpt
    Ag
    oz
    Au
    oz
    Ag-Eq
    oz
    Guanacevi 1,710,000 290 0.53 330 15,957,900 28,900 18,125,400
     
    Resources Inferred
    Description Tonnes Ag
    gpt
    Au
    gpt
    Ag-Eq
    gpt
    Ag
    oz
    Au
    oz
    Ag-Eq
    oz
    Guanacevi 1,563,000 240 0.37 268 12,069,800 18,800 13,479,800
    *Cut-off grade for Indicated & Inferred Resources for Guanacevi is 200g/t Ag for Porvenir and 100 g/t Ag for Alex Breccia, Santa Cruz, Porvenir Dos and Noche Buena.
    **Cut-off grade for Indicated & Inferred Resources for Guanajuato is 200 g/t Ag-Equivalent
    ***Silver-Equivalencies are calculated using a 75:1 ratio based on prices of USD $12 per ounce of silver and US$900 per ounce of gold, no base metal credits are used for calculating silver-Equivalencies.

    Silver-Gold-Lead-Zinc Resources - Guanacevi
    Resources Indicated
    Description Tonnes Ag
    gpt
    Au
    gpt
    Ag-Eq
    gpt
    Ag
    oz
    Au
    oz
    Ag-Eq
    oz
    Zn
    %
    Pb
    %
    Guanacevi 85,000 66 0.18 80 179,500 500 217,000 2.2 3.6
     
    Resources Inferred
    Description Tonnes Ag
    gpt
    Au
    gpt
    Ag-Eq
    gpt
    Ag
    oz
    Au
    oz
    Ag-Eq
    oz
    Zn
    %
    Pb
    %
    Guanacevi 260,000 72 0.15 83 604,300 1,300 701,800 2.1 3.4
    *Cut-off grade for Indicated & Inferred Resources for Guanacevi is 50 g/t Ag plus 3.5% combined Pb-Zn.
    **Silver-Equivalencies are calculated using a 75:1 ratio based on prices of USD$12 per ounce of silver and USD$900 per ounce of gold; no base metal credits are used for calculating silver-Equivalencies.

  • Large Plant - Modern mill undergoing expansion to capacity.
  • High Grades - 350 grams/tonne Silver equates to 10+ oz/ton Silver plus Gold credit of 0.60 gram/tonne.
  • Good Widths - 3 metre average width
  • Local Infrastructure
    • Power and Water on property
    • 5 km to paved highway and town of Guanacevi
    • Trained work force on site
  • Land Package - 1,054 Hectares (2,604 acres)
  • Low and Manageable Risks - Known geology, grades, metallurgy and mill operation
click to enlarge images

Map of North West Mexico

Map of the State of Durango

Town of Guanacevi

Map of Guanacevi Silver District

The Portal at Porvenir Dos

Power Installed at Porvenir Dos

Laying Concrete at Porvenir Dos

Guanacevi Project Longitudinal Section

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The History of Guanacevi

"Durango -- the Spaniards dream -- lies in the heart of the famous Sierra Madre Mountains. It's beautiful climate, ancient forests, graceful plains and above all, its wonderful wealth of gold and silver and copper- together with an abundance of water- have combined to make it a perfect Utopia.

This dream of the Spaniard was not that of everlasting youth or beauty, but it formed the basis upon which the boldest and most daring pioneers set out to conquer the wealth of new and unknown lands, and thus add new wealth and impetus to the old world, then in the zenith of its glory."
(Las Minas de Mexico, J.R. Southworth, 1905)


Stoping for silver the old
fashioned way

Mining in Guanacevi by the Spanish dates back to at least 1535 and as early as 1616, the Jesuit priest Francisco J. Clavijero stated the Guanacevi district was already famous for its minerals. Alexander von Humboldt, in his writings about New Spain in the early 1700's, described the district as a "rich mineral area" in the Sierra Madre Occidental. Some of the famous mines worked by the Spaniards include: Santa Cruz, Garibaldi, Sirena, Capuzaya, San Rafael y Fanny, Soto, Nueva Australia, Desengaño, Barradon, San Jose, Arianeña, Chamole, Mexicana, Predilecta and Paleros.

By the 1800's, several English and American companies worked in Guanacevi, including Restauradora Company at Arianena, Barradan y Cabras Company at Barradan, Guanacevi Mining Company at Hacienda Wilson, F.H. Husted at Anita, the United Mexico Company at Paleros and the Mexican Consolidated Mining and Smelting Company at the mines El Soto, Nuevo Porvenir and Nueva Australia in the San Pedro area. At its peak in the late 1800's, up to 50 small mines were feeding several local mills. A small mint was constructed in Guanacevi in 1844. However, by the early 1900's, many of the mines had closed.

Mexican ore carrier
ascending ladder

"Guanacevi in Durango state is a very rich district, and many of the largest capitalists of New York have enormous interests in its mines. Considering the large number of once famous properties, there are comparatively few in operation. The cessation of development has been due to various causes, though not from lack of ore.

In some cases, it has been from lack of funds for the purchase of machinery, also when water in large quantities has been encountered. Another cause has been the heavy freight and smelter charges, still another, a lack of local treatment facilities of ores available only for milling. Local critics claim the failures were on account of bad management. Many of the mills were well constructed, but in most cases their erection was hurried, and carried out with no adequate concept of the metals to be treated."
(exerpted from Las Minas de Mexico, J.R. Southworth, 1905)

Like most Mexican mining districts, Guanacevi closed after the Mexican revolution of Francisco I. Madero, Emiliano Zapata and Francisco (Pancho) Villa in 1910-1912. Industrias Peñoles subsequently acquired the Santa Cruz and Garibaldi mines in the 1920's and developed the 300m deep shaft plus several kilometers of underground workings but carried out little production. The Guanacevi Mining Company continued operating in the area until its closure in 1942. The district saw sporadic mining activity thereafter until the huge rise in the silver price in 1980 prompted renewed interest in the district.

In 1970, the Comision de Fomento Minero (the mine investment arm of the Mexican government) erected a 250 tpd flotation plant in Guanacevi to facilitate renewed production from some of the small mines in the district. The plant was expanded to 600 tpd in the early 1980's and then sold in 1991 to Metalurgica Guanacevi, who refurbished the plant and completed the addition of a 600 tpd cyanide leach circuit. Starting in 1992, Minera Santa Cruz y Garibaldi produced small amounts of high grade ore from the Santa Cruz y Garibaldi mines under a lease arrangement with Industrias Penoles.

The district of Guanacevi was reknowned for its high silver grades. Official records indicate a total historic production value of around 500 million pesos, which is equivalent to approximately 500 million oz silver and equivalents. That would make Guanacevi one of the top five historic silver mining districts in Mexico on the basis of past production.


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Laboratory
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Nerio, the Security Manager
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New Security Office at the Gate to the Guanacevi Plant
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Safety Training
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Our Own Paramedic and Ambulance
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Infirmary