Americas Silver Corporation (TSX: USA) (NYSE “MKT”: USAS)
(“Americas Silver” or the “Company”) is pleased to provide a
construction update on its 100% owned and fully funded San Rafael
development project located in Sinaloa, Mexico.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20170717006141/en/
San Rafael/ El Cajón Area - 2017 Drill
Targets Map (Graphic: Business Wire)
Budget & Timeline
Construction commenced in early Q4, 2016 with an estimated
initial capital expenditure of US $22 million based on the March
30, 2016, San Rafael pre-feasibility study. The initial capital
estimate was subsequently reduced to US $18 million due to project
optimization related to the mill expansion, refurbishing existing
equipment and ramp development, as well as favourable movements in
the Mexican peso. As at June 30, 2017, the Company has spent
approximately $10.5 million of the revised budget and expects to
have sufficient cash on hand and cash flow generated from
continuing operations to fund the project development.
Management expects that initial processing of material at the
existing Los Braceros mill will occur by mid-September. The initial
targeted throughput of 1,500 tonnes per day from the
pre-feasibility study is expected early in Q4, 2017. In early 2018,
management will evaluate a potential mill expansion based on
realized mill throughput of the San Rafael ore, achievable future
mining rates and current metal prices.
San Rafael is expected to deliver average annual production of 1
million ounces of silver, 50 million pounds of zinc and 20 million
pounds of lead over a 6 plus year mine life at negative all-in
sustaining costs based on current reserves and metal prices. The
project is expected to have an IRR of greater than 100%, generate
substantial free cash flow and provide a step change in the
Company’s cash cost and all-in sustaining cost profile in 2018.
“The pace of development at San Rafael has picked up
considerably with the challenging ground conditions now largely
behind us, allowing the project to remain on track to deliver on
budget and on schedule for first production by the end of Q3,
2017,” said Daren Dell, Chief Operating Officer of Americas Silver.
“I’m proud of our Mexican team’s resolve to work through the ground
issues and maintain the short-term development schedule, while also
preserving the maximum long-term flexibility of the mine.”
Underground Ramp
Development
Main access at San Rafael continues to develop toward the center
of the Main Zone. Concurrently, a secondary ramp development
heading to the west which accesses the first 18-24 months of
production in the southern-most part of the Main Zone has less than
190 meters of development to reach the first ore stopes. Management
currently anticipates that ramp development to this area will allow
ore stockpiling to begin in early August. The main access
development continues to advance through a localized “karst” zone
that hosts challenging ground conditions at the contact between
volcanic and limestone rock-types. Development is moving
successfully through this area and an augmented ground support
regime has been implemented to ensure its long-term stability.
Continued development beyond this area will provide future access
to the Main Zone and Upper Zone areas of the mine for production
beyond 2019.
Processing Facility
Mill modifications including additional flotation capacity,
reagent preparation and distribution areas, and concentrate regrind
circuits at the existing Los Braceros mill are progressing well.
All major equipment has been delivered and contractors are
currently focusing on electrical cable installation and piping.
Commissioning of the new equipment is set for the second half of
August in anticipation of initial production from San Rafael.
Drilling
Earlier in the year, the Company completed a 20-hole, 1,900
meter definition drill campaign covering the southern part of the
Main Zone. The program successfully confirmed the limits of the
current resource and provided additional information for final
stope design. Management is also evaluating options to mine and
stockpile additional material from this area made economic through
higher metal prices.
In Q2, 2017, the Company completed an 8-hole, 2,700 meter
diamond drilling campaign targeting the Zone 120 area. Given the
success of that original program, four additional holes are
currently testing the southern extension of Zone 120 to evaluate a
potential connection with the El Cajón mine. The individual
drill-hole results from the first campaign will be incorporated
into the Company’s mid-year reserve and mineral resource update
expected to be released by the end of Q3, 2017. See attached map
for drill locations.
Current Operations
Current production for the Cosalá operations continues to be
primarily sourced from the Nuestra Señora mine as higher zinc and
lead prices have prioritized this ore above the El Cajón ore,
currently in stockpiles at the Los Braceros mill. It is expected
that ore from Nuestra Señora will be processed through most of Q3,
2017. El Cajón stockpiles are available to supplement mill feed
until San Rafael commences at the end of the quarter.
About Americas Silver Corporation
Americas Silver is a silver mining company focused on growth in
precious metals from its existing asset base and execution of
targeted accretive acquisitions. It owns and operates the Cosalá
Operations in Sinaloa, Mexico and the Galena Mine Complex in Idaho,
USA. The Company has acquired an option on the San Felipe
development project in Sonora, Mexico.
Daren Dell, Chief Operating Officer and a Qualified Person under
Canadian Securities Administrators guidelines, has approved the
applicable contents of this news release. For further information
please see SEDAR or americassilvercorp.com.
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, the Company’s
expectations intentions, plans, assumptions and beliefs with
respect to, among other things, the realization of operational and
development plans (including the successful completion of the San
Rafael Project), the Cosalá Operations and Galena Complex as well
as the Company’s financing efforts. Often, but not always,
forward‐looking information can be identified by forward‐looking
words such as “anticipate”, “believe”, “expect”, “goal”, “plan”,
“intend”, “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 the Company 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 the Company to
be materially different from those expressed or implied by such
forward looking information. This includes the ability to develop
and operate the Cosalá and Galena properties, risks associated with
the mining industry such as economic factors (including future
commodity prices, currency fluctuations and energy prices), ground
conditions and factors 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 expenditures, reclamation activities, social and
political developments and other risks of the mining industry.
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. By its nature, forward-looking information involves
numerous assumptions, inherent risks and uncertainties, both
general and specific that contribute to the possibility that the
predictions, forecasts, and projections of various future events
will not occur. The Company undertakes no 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.
Cautionary Note to U.S. Investors:
The terms “mineral resource”, “measured mineral resource”,
“indicated mineral resource”, “inferred mineral resource” used in
the press release are Canadian mining terms used in accordance with
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects under the guidelines set out in the Canadian Institute of
Mining, Metallurgy and Petroleum Standards. Mineral resources which
are not mineral reserves do not have demonstrated economic
viability.
While the terms “mineral resource”, “measured mineral resource”,
“indicated mineral resource”, and “inferred mineral resource” are
recognized and required by Canadian regulations, they are not
defined terms under standards in the United States and normally are
not permitted to be used in reports and registration statements
filed with the Securities & Exchange Commission (“SEC”). As
such, information contained in the Company's disclosure concerning
descriptions of mineralization and resources under Canadian
standards may not be comparable to similar information made public
by U.S companies in SEC filings. With respect to “inferred mineral
resource” there is a great amount of uncertainty as to their
existence and a great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
“inferred mineral resource” will ever be upgraded to a higher
category. Investors are cautioned not to assume that any part or
all of mineral deposits in these categories will ever be converted
into reserves.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170717006141/en/
Americas Silver CorporationDarren Blasutti,
416-848-9503President and CEO
Americas Gold and Silver (TSX:USA)
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