The company underwent a blasting suspension announced on April 27 following two blasts going off earlier than planned.

"Despite the temporary mining suspension, the company expects the metal production to stay close to plan with continued high-grade ores expected in Q2 2022 which will help offset the lower amounts of material processed in the current quarter compared to Q1 2022," Gatos said.

The miner's 2022 production guidance stands at 8.5 million-9 million ounces silver, 49 million million-54 million pounds of zinc, 36 million-40 million lbs lead, and 4,000-4,500oz gold.

Gatos' 70%-owned Cerro Los Gatos produced a record first quarter of 2.39 million oz this year, which was up 58% from the same quarter a year earlier when operations were shutdown for two weeks because of a power failure.

First quarter lead and zinc production levels were 10.3 million and 13.8 million lbs—representing year on year increases of 36% and 58%, respectively. Gold production was 1,300oz.

Sales from the mine rose 85% year on year in Q1 to US$85.6 million primarily because of higher metals prices, higher production rates, and higher ore grades, Gatos said.

Cost of sales in the quarter was $24.4 million, up from $19.8 million a year earlier.

"We are looking forward to delivering on our commitment to provide a comprehensive update to mineral resources and mineral reserves as well as a new life-of-mine plan later this year and use this important milestone as a springboard for the future advancement of Gatos Silver up the value chain, Gatos CEO Dale Andres said.

Gatos' share price fell 5% day on day to C$3.66 (US$2.82) on May 9. The company has a market capitalization of C$253.13 million.