Gatos Silver, Inc. (GATO) Announces Errors in Mineral Resource and Reserve Estimates in its 2020 Technical Report
Robbins LLP is investigating Gatos Silver, Inc. (NYSE: GATO) to determine whether certain Gatos Silver officers and directors violated securities laws and breached fiduciary duties to shareholders. Gatos Silver engages in the exploration, development, and production of precious metals.
On January 25, 2022, Gatos Silver provided a resource and reserve update for the Los Gatos Joint Venture, concluding “that there were errors in the technical report entitled ‘Los Gatos Project, Chihuahua, Mexico’ with an effective date of July 1, 2020 (the ‘2020 Technical Report’), as well as indications that there is an overestimation in the existing resource model.” Therefore, “[o]n a preliminary basis, the Company estimates a potential reduction of the metal content of CLG’s mineral reserve ranging from 30% to 50% of the metal content remaining after depletion” and advised that “the mineral resource and reserve estimates in the 2020 Technical Report should not be relied upon.” Following this news, Gatos Silver stock fell sharply during intraday trading on January 26, 2022.
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