Guanajuato Silver Company (GSilver) has begun processing silver and gold-bearing material at its El Cubo mine and mill near Guanajuato, Mexico, after completing US$3.5 million in upgrades.

The company said the crushing and grinding of mill feed at El Cubo started on October 8, 2021, after GSilver accumulated over 20,000 tonnes of stockpiled material; it expects to deliver its first concrete shipment by the end of October 2021.

For the ramp-up phase of the launch, GSilver initially targeted lower-grade material than it had planned in its preliminary economic assessment; it will move on to higher grade areas within the mine in the coming months.

James Anderson, chairman and chief executive officer, GSilver, described the launching of operations as a significant milestone, claiming it was done "on track, on time and on budget".

Director and chief operating officer Hernan Dorado said the launch was a "relatively smooth" process. The company expects El Cubo to produce 22,500 tonnes a month when at total capacity.

The launching of El Cubo follows an agreement struck in September 2021 to produce and sell a bulk silver and gold concentrate to Ocean Partners UK.