Gatos Silver updated its resource and reserve estimates following the completion of its reconciliation work at the Company’s 100% owned Cerro Los Gatos mine. Following an update of the resources, the company revealed that its report for the Los Gatos Joint Venture contained errors. Based on the updated data, the company now believes that its metal content could be reduced to less than 50% after its reserves are depleted.
Although Gatos Silver can’t provide a precise figure, it believes that its total metal content will be reduced to 30% to 50% after depletion. As part of its due diligence, the company has engaged the services of engineering consultants to analyze the magnitude of the overestimation.
Due to the complexity of the project, the company is expected to complete its reconciliation work in the second half of 2022. The company has identified various issues with the CLG’s mineral veins, which are more complex than previously estimated. Despite the complexity of the project, the company has been able to successfully mine these veins through 2021.