The company also released a life of mine plan for the operations, which sees production of 42.2 million ounces Ag, 379.9 million pounds Zn, 256.4 million lbs Pb, and 29,500oz Au through to 2028.
The company's announcement that the 2020 technical report had errors in it came on 25 January of this year. Since then, Gatos has rebuilt its reserve and resource estimates and, on a preliminary basis, expects the new report to show reductions of 32% silver, 37% zinc, 36% lead, and 35% gold, after accounting for depletion.
The January announcement saw Gatos' share price slump from between C$12 and C$13 (US$8.86 and US$90.6) in the days prior to below C$4 after it was made. The stock has not returned to anywhere near its earlier heights since the fall.
It rose 4% day on day to C$4.32 on 4 October.
Canaccord Genuity Capital Markets analyst Michael Fairbairn called the updated estimates and LOM plan, "a step in the right direction".
On a silver equivalent basis, Gatos LOM plan to 2028 stands at 75.9 million oz, which compares to CG's estimate of 61.3 million oz AgEq through to 2026.
The average annual production of 11.7 million oz AgEq compares to CG's 13.6 million oz.
By-product AISC of US$7.06/oz Ag was higher than the $6.42/oz forecast by CG.
The project has been given an after-tax NPV5% of $377 million, which compares to CG's estimate of $286 million. The price assumptions used were $22/oz Ag, $1.20/lb Zn, $0.90/lb Pb, and $1,700/oz Ag.
"With the technical update now in place, Gatos has removed the major bottleneck preventing it from filing its back financial statements and taken a substantial step towards correcting the issues it has faced over the previous year," Fairbairn said.
"After missing its reporting deadline, Gatos is operating in an Initial Cure Period, allowing trading to continue for six months. Given the time required to complete its updated R&R estimate, Gatos expected that it would not be able to file during this period, and management plans to apply for an extension," he said.
He explained that the extension is at the discretion of the NYS, while its listing on the TSX involves a management cease trade order, which does not have a pending deadline.
