Americas Gold and Silver Corporation (TSX: USA) (NYSE American:
USAS) (“Americas”, “Americas Gold and Silver” or the “Company”), a
growing North American precious metals producer, is pleased to
provide an update on the Galena Complex and the Relief Canyon
mine.
Highlights
- The Galena Complex had a strong finish to the year with Q4-2020
production of approximately 295,000 ounces of silver and 5.8
million pounds of lead (600,000 ounces AgEq1) compared with 160,000
ounces of silver and 2.6 million pounds of lead in Q4-2019 (296,500
AgEq), a year-over-year increase of over 100% on a AgEq basis.
- With the continued strong silver price, the Company is
targeting to increase production at the Galena Complex to 1.8-2.0
million ounces of silver per year in 2022 by replacing the Galena
hoist and increasing development on the 3700 and 4300 levels in
2021.
- The increase in production is based on the continued success of
the Phase 1 drill program as part of the Galena Recapitalization
plan, particularly from the 4300 Level targeting the upper
extensions of the 360 Complex and more recent drilling from the
3400 Level. Key intercepts include:
- Hole 34-117
- 1,017 g/t silver and 1.0% copper (or 1,121 g/t AgEq) over 2.9
meters2 including 2,195 g/t silver and 3.1% copper (or 2,513 g/t
AgEq) over 0.8 meters including 6,893 g/t silver and 3.0% copper
(or 7,206 g/t AgEq) over 0.2 meters
- Hole 43-253
- 855 g/t silver, 0.7% copper and 0.4% lead (or 938 g/t AgEq)
over 0.5 meters including 4,458 g/t silver, 3.5% copper and 1.8%
lead (or 4,888 g/t AgEq) over 0.1 meters
- 413 g/t silver and 10.2 % lead (or 786 g/t AgEq) over 1.5
meters including 2,092 g/t silver and 43.4% lead (or 3,680 g/t
AgEq) over 0.2 meters
- At Relief Canyon, commercial production is expected within the
next two weeks, due to certain key personnel for the project being
unable to remain onsite as a result of contracting COVID-19 and
winter weather impacts.
“The Galena Complex is demonstrating the positive impact of
having a diversified portfolio of assets and commodities,” stated
Americas Gold and Silver President & CEO Darren Blasutti.
“While I am disappointed by the unexpected delay in declaring
commercial production at Relief Canyon, the health and safety of
our workers far outweighs pushing to declare commercial production.
We are having a strong start to 2021 at Relief Canyon, our key
employees have returned to the site and the stacker is operating
well. We look forward to declaring commercial production at Relief
Canyon shortly.”
Galena Complex
The Galena Complex is benefiting from the Recapitalization Plan
that commenced in October 2019 as evident from the significant
year-over-year production increase in Q4-2020. Production in
Q4-2020 increased to approximately 295,000 ounces of silver and 5.8
million pounds of lead (600,000 ounces AgEq) compared with 160,000
ounces of silver and 2.6 million pounds of lead in Q4-2019 (296,500
AgEq), a year-over-year increase of over 100% on a AgEq basis.
The Company is confident it can increase production to 1.8-2.0
million ounces of silver by 2022 based on the continued success of
drilling on the 360 Complex, which was an important contributor to
the increase in the mineral resource estimates as of June 30, 2020.
This increase will require replacement of the Galena hoist as well
as continued development on the 3700 and 4300 levels. The Company
estimates the required capital for this project to be approximately
$20 million.
The most recent drilling from the 4300 Level targeting the upper
zones of the 360 Complex adds to the recent drill success. Key
intercepts from Hole 43-253 include:
- 855 g/t silver, 0.7% copper and 0.4% lead (or 938 g/t AgEq)
over 0.5 meters including 4,458 g/t silver, 3.5% copper and 1.8%
lead (or 4,888 g/t AgEq) over 0.1 meters
- 145 g/t silver and 6.5% lead (or 379 g/t AgEq) over 2.3 meters
including 521 g/t silver and 24.4% lead (or 1,406 g/t AgEq) over
0.2 meters
- 326 g/t silver and 10.4 % lead (or 712 g/t AgEq) over 0.9
meters including 1,289 g/t silver and 34.8% lead (or 2,580 g/t
AgEq) over 0.1 meters
- 413 g/t silver and 10.2 % lead (or 786 g/t AgEq) over 1.5
meters including 2,092 g/t silver and 43.4% lead (or 3,680 g/t
AgEq) over 0.2 meters
The East Coeur target occupies the area between Galena’s
historically prolific West Argentine mining front and the Coeur
mine. Initial drilling from the 3400 Level yielded a strong result
which will be followed up with additional drilling. Key intercepts
from Hole 34-117 include:
- 1,017 g/t silver and 1.0% copper (or 1,121 g/t AgEq) over 2.9
meters including 2,195 g/t silver and 3.1% copper (or 2,513 g/t
AgEq) over 0.8 meters including 6,893 g/t silver and 3.0% copper
(or 7,206 g/t AgEq) over 0.2 meters
A full table of drill results can be found at:
https://americas-gold.com/site/assets/files/4297/dr20210106.pdf.
Development on the 5500 Level to establish a new drill station
east of the #3 shaft is expected to be completed by the end of
January 2021. This drill station will provide a better angle to
target the Triple Point (intersection of the Silver, 175 and 185
Veins) as well as the down dip extension of the 360 Complex.
The Company is targeting further mineral resource additions at
the Galena Complex for the remainder of Phase 1 drilling through
June 2021 with expectations of least 50 million ounces of
silver.
Relief Canyon
On December 7, 2020, the Company announced that its large radial
stacker returned to operation at Relief Canyon and was confident
commercial production would be reached by year-end. Due to several
factors, including key personnel for the project contracting the
COVID-19 virus in December 2020, commissioning of the larger
stacker and winter weather impact, the operation has not been able
to maintain the steady ore stacking rate required for the Company
to declare commercial production. Following the detection of
COVID-19 positive cases within these key personnel, measures were
taken to isolate positive cases and prevent the spread of the
virus. The Company’s top priority is to maintain the health and
safety of its employees and contractors, their families and the
community, and is following COVID-19 safety measures and guidance
from public health authorities regarding response and containment
measures.
The Company expects to reach commercial production at Relief
Canyon by mid-January 2021 with full production targeted by mid-May
2021. The Company will be providing full year production guidance
following the announcement of commercial production and inline with
the Company’s regular guidance timeframe.
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a high-growth precious
metals mining company with multiple assets in North America. The
Company’s newest asset, the Relief Canyon mine in Nevada, USA, has
poured first gold and is expected to ramp up to full production
over the course of 2021. The Company also owns and operates the
Cosalá Operations in Sinaloa, Mexico and manages the 60%-owned
Galena Complex in Idaho, USA. The Company has completed the
outstanding option acquisition agreement for the San Felipe
development project in Sonora, Mexico. For further information,
please see SEDAR or www.americas-gold.com.
Qualified Persons
Niel de Bruin, Director of Geology, who is an employee of the
Company and a “qualified person” under National Instrument 43-101,
have approved the applicable contents of this news release.
Technical Information
The diamond drilling program used NQ-size core. Americas Gold
and Silver’s standard QA/QC practices were utilized to ensure the
integrity of the core and sample preparation at the Galena Complex
through delivery of the samples to the assay lab. The drill core
was stored in a secure facility, photographed, logged and sampled
based on lithologic and mineralogical interpretations. Standards of
certified reference materials, field duplicates and blanks were
inserted as samples shipped with the core samples to the lab.
Analytical work was carried out by American Analytical Services
Inc. (“AAS”) located in Osburn, Idaho. AAS is an independent,
ISO-17025 accredited laboratory. Sample preparation includes a
30-gram pulp sample analyzed by atomic absorption spectrometry
(“AA”) techniques to determine silver, copper, and lead, using aqua
regia for pulp digestion. Samples returning values over 514g/t Ag
are re-assayed using fire-assay techniques for silver.
Additionally, samples returning values over 23% Pb are re-assayed
using titration techniques.
Duplicate pulp samples were sent out quarterly to ALS Global, an
independent, ISO-17025 accredited laboratory based in Reno, Nevada
to perform an independent check analysis. A conventional AA
technique was used for the analysis of silver, copper and lead at
ALS Global with the same industry standard procedures as those used
by AAS. The assay results listed in this report did not show any
significant contamination during sample preparation or sample bias
of analysis.
Cautionary Statement on Forward-Looking Information:
This news release contains “forward-looking information” within
the meaning of applicable securities laws. Forward-looking
information includes, but is not limited to, Americas Gold and
Silver’s expectations, intentions, plans, assumptions and beliefs
with respect to, among other things, estimated and targeted
production rates and results for gold, silver and other precious
metals, as well as the related costs, expenses and capital
expenditures; the recapitalization plan at the Galena Complex,
including the replacement of the hoist and associated and expected
costs; the Company’s production, development plans and performance
expectations at the Relief Canyon Mine and its ability to finance,
develop and operate Relief Canyon, including the anticipated timing
of commercial production at Relief Canyon, the potential impact of
the discovery of the carbonaceous material within the Relief Canyon
pit and the Company’s initial analysis and determination of the
extent and impact thereof and the expected timing to complete such
analysis and determination, as well as its ability to address or
mitigate such impacts and the extent thereof. Often, but not
always, forward-looking information can be identified by
forward-looking words such as “anticipate”, “believe”, “expect”,
“goal”, “plan”, “intend”, “potential’, “estimate”, “may”, “assume”
and “will” or similar words suggesting future outcomes, or other
expectations, beliefs, plans, objectives, assumptions, intentions,
or statements about future events or performance. Forward-looking
information is based on the opinions and estimates of Americas Gold
and Silver as of the date such information is provided and is
subject to known and unknown risks, uncertainties, and other
factors that may cause the actual results, level of activity,
performance, or achievements of Americas Gold and Silver to be
materially different from those expressed or implied by such
forward-looking information. With respect to the business of
Americas Gold and Silver, these risks and uncertainties include
risks relating to widespread epidemics or pandemic outbreak
including the COVID-19 pandemic; the impact of COVID-19 on our
workforce, suppliers and other essential resources and what effect
those impacts, if they occur, would have on our business, including
our ability to access goods and supplies, the ability to transport
our products and impacts on employee productivity, the risks in
connection with the operations, cash flow and results of the
Company relating to the unknown duration and impact of the COVID-19
pandemic; interpretations or reinterpretations of geologic
information; unfavorable exploration results; inability to obtain
permits required for future exploration, development or production;
general economic conditions and conditions affecting the industries
in which the Company operates; the uncertainty of regulatory
requirements and approvals; fluctuating mineral and commodity
prices; the ability to obtain necessary future financing on
acceptable terms or at all; the ability to bring to commercial
production and operate the Relief Canyon Project; and risks
associated with the mining industry such as economic factors
(including future commodity prices, currency fluctuations and
energy prices), ground conditions and other factors limiting mine
access, failure of plant, equipment, processes and transportation
services to operate as anticipated, environmental risks, government
regulation, actual results of current exploration and production
activities, possible variations in ore grade or recovery rates,
permitting timelines, capital and construction expenditures,
reclamation activities, labor relations or disruptions, social and
political developments and other risks of the mining industry. The
potential effects of the COVID-19 pandemic on our business and
operations are unknown at this time, including the Company’s
ability to manage challenges and restrictions arising from COVID-19
in the communities in which the Company operates and our ability to
continue to safely operate and to safely return our business to
normal operations. The impact of COVID-19 on the Company is
dependent on a number of factors outside of its control and
knowledge, including the effectiveness of the measures taken by
public health and governmental authorities to combat the spread of
the disease, global economic uncertainties and outlook due to the
disease, and the evolving restrictions relating to mining
activities and to travel in certain jurisdictions in which it
operate. Although the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated, or
intended. Readers are cautioned not to place undue reliance on such
information. Additional information regarding the factors that may
cause actual results to differ materially from this forward-looking
information is available in Americas Gold and Silver’s filings with
the Canadian Securities Administrators on SEDAR and with the SEC.
Americas Gold and Silver does not undertake any obligation to
update publicly or otherwise revise any forward-looking information
whether as a result of new information, future events or other such
factors which affect this information, except as required by law.
Americas Gold and Silver does not give any assurance (1) that
Americas Gold and Silver will achieve its expectations, or (2)
concerning the result or timing thereof. All subsequent written and
oral forward‐looking information concerning Americas Gold and
Silver are expressly qualified in their entirety by the cautionary
statements above.
1 AgEq was calculated using metal prices of $20.00/oz silver,
$3.00/lb copper and $1.05/lb lead. 2 Meters represent “True Width”
which is calculated for significant intercepts only and based on
orientation axis of core across the estimated dip of the vein.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210106005798/en/
Stefan Axell VP, Corporate Development & Communications
Americas Gold and Silver Corporation 416-874-1708
Darren Blasutti President and CEO Americas Gold and Silver
Corporation 416-848-9503
Americas Gold and Silver (AMEX:USAS)
Historical Stock Chart
From Apr 2024 to May 2024
Americas Gold and Silver (AMEX:USAS)
Historical Stock Chart
From May 2023 to May 2024