Americas Gold and Silver Corporation (TSX: USA) (NYSE American:
USAS) (“Americas” or the “Company”), a growing North American
precious metals producer, is pleased to provide an exploration
update for its Galena Complex Joint Venture.
Highlights
- The Galena JV Management Committee met in June 2022 to review
Phase II exploration drilling, future exploration targets, the
Galena Hoist project and future production plans for the Galena
Complex (60% Americas / 40% Eric Sprott).
- Phase II exploration has completed approximately 19,000 meters
of drilling with a focus on continued deeper exploration drilling
and upgrading inferred mineral resources.
- The updated mineral resource estimate is expected to increase
when completed in late Q3-2022. The Galena Complex continues to add
resources at a discovery cost of less than 10 cents per silver
ounce. Key results from the in-fill drill program includes:
- Hole 37-329: 7,501 g/t silver and 2.6% copper (7,781 g/t
silver equivalent [1]) over 1.7 m [2]
- including: 21,500 g/t silver and 7.6% copper (22,300 g/t silver
equivalent) over 0.6 m
- Hole 49-573: 1,517 g/t silver and 0.7% copper (1,591 g/t
silver equivalent) over 1.3 m
- including: 7,130 g/t silver and 3.2% copper (7,470 g/t silver
equivalent) over 0.2 m
- Exploration drilling has defined the Silver Vein extension down
over 400 feet from the 5500 Level and the 185 Vein down over 800
feet from the 5500 Level with new mineralization encountered as
deep as 1,000 feet below the 5500 Level. Key results include:
- Hole 55-216: 4,010 g/t silver and 3.9% copper (4,420 g/t
silver equivalent) over 1.2 m
- Hole 55-217: 1,460 g/t silver and 1.3% copper (1,594 g/t
silver equivalent) over 1.7 m
- including: 9,600 g/t silver and 8.8% copper (10,500 g/t silver
equivalent) over 0.2 m
- and: 4,120 g/t silver and 3.1% copper (4,440 g/t silver
equivalent) over 0.3 m
- and: 1,745 g/t Ag, 7.8% Pb and 0.8% Cu (2,111 g/t silver
equivalent) over 0.8 m
- Further, the 5500 Level East development has encountered the
291 Vein, which was previously mined to the 5200 Level with an
average width of 2 meters at an average grade of approximately
1,200 g/t silver.
- Hole 55-223: 2,402 g/t silver and 2.2% copper (2,620 g/t
silver equivalent) over 0.6 m
- including: 3,150 g/t silver and 2.9% copper (3,440 g/t silver
equivalent) over 0.4 m
- In addition to continuing to target known vein extensions,
Galena Complex management have outlined five prospective brownfield
target areas based on large gap areas containing no drill
data.
- With the significant number of drill targets, the Galena JV
Management Committee approved the purchase of an additional
underground drill and hiring of personnel to accelerate the
exploration program.
- As a result of the current and proposed geologic targets, the
Galena JV Management Committee reviewed a 5-year exploration
strategy with the objective of doubling the current Galena Complex
global silver resource over the next 5 years.
- The Galena Hoist project remains on target to be installed and
commissioned in Q4-2022 with the total Galena Complex capital
budget for the year expected to remain within 5% of the initial
forecast.
- Silver production for 2023 and beyond is forecast to increase
to over 2.5 million ounces per year with a 5-year target to double
production by the end of 2027.
“Steady progress is being made at the Galena Complex to
transform it into one of the largest primary silver producers in
the United States,” stated Americas Gold and Silver President &
CEO Darren Blasutti. “The Phase II drilling continues to increase
silver mineral resources, and when coupled with the progress being
made on the Galena Hoist installation, is expected to bring silver
production to over 2.5 million ounces in 2023. Further, new
exploration targets within the Galena Complex have been identified
from the structural geology review to target a doubling of the
current global silver mineral resource over the next 5 years,
allowing the Galena Complex to get back to its historical peak
production capacity in 2027.”
Galena Complex Update
The Galena JV Management Committee met in June 2022 to review
Phase 2 exploration drilling, future exploration targets, the
Galena Hoist project and future production plans for the Galena
Complex (60% Americas / 40% Eric Sprott). The Phase II drill
program at the Galena Complex began in late August 2021.
The initial focus was to test the recently discovered Silver
Vein extension below the 5500 Level, the deepest level of the mine.
To date, the Silver Vein extension has been delineated to over 400
ft below the 5500 Level. As part of the 5500 Level drilling of the
Silver Vein extension, the Company successfully intersected the
high grade 185 Vein approximately 800 ft below the 5500 Level. Key
intercepts from the Silver Vein extension and the 185 Vein
include:
- Hole 55-196: 780 g/t silver and 1.1% copper (890 g/t
silver equivalent) over 1.5 m
- Hole 55-199: 1,405 g/t silver and 1.5% copper (1,561 g/t
silver equivalent) over 1.8 m
- Hole 55-200: 1,593 g/t Ag, 0.2% Pb and 0.9% Cu (1,690
g/t silver equivalent) over 0.7 m including: 3,220 g/t Ag, 0.4% Pb
and 1.7% Cu (3,410 g/t silver equivalent) over 0.2 m
- Hole 55-216: 4,010 g/t silver and 3.9% copper (4,420 g/t
silver equivalent) over 1.2 m
- Hole 55-217: 1,460 g/t silver and 1.3% copper (1,594 g/t
silver equivalent) over 1.7 m including: 9,600 g/t silver and 8.8%
copper (10,500 g/t silver equivalent) over 0.2 m and: 4,120 g/t
silver and 3.1% copper (4,440 g/t silver equivalent) over 0.3 m
and: 1,745 g/t Ag, 7.8% Pb and 0.8% Cu (2,111 g/t silver
equivalent) over 0.8 m
A full table of drill results can be found at:
https://americas-gold.com/site/assets/files/4297/dr20220623.pdf
The Company continues to advance development further east along
the 5500 Level to allow for continued exploration of the 360
Complex and testing of the Caladay Zone. Development has crossed
the 291 Vein which was a steady producing area when last mined on
the 5200 Level. The Company now plans immediate exploration and
development of the 291 Vein given the strong historical mining of
the vein on the 5200 Level with average mining widths of over 2
meters at an average grade of approximately 1,200 g/t silver.
- Hole 55-223: 2,402 g/t silver and 2.2% copper (2,620 g/t
silver equivalent) over 0.6 m including: 3,150 g/t silver and 2.9%
copper (3,440 g/t silver equivalent) over 0.4 m
In addition to deep exploration drilling, the Company has
focused on in-fill drilling to upgrade inferred mineral resources
adjacent to current production areas to the measured and indicated
categories. Key results from the in-fill drilling includes:
- Hole 37-328: 8,230 g/t Ag, 0.2% Pb and 3.9% Cu (8,640
g/t silver equivalent) over 0.2 m and: 1,650 g/t Ag, 1.0% Pb and
0.6% Cu (1,760 g/t silver equivalent) over 1.0 m
- Hole 37-329: 7,501 g/t silver and 2.6% copper (7,781 g/t
silver equivalent) over 1.7 m including: 21,500 g/t silver and 7.6%
copper (22,300 g/t silver equivalent) over 0.6 m
- Hole 49-573: 1,517 g/t silver and 0.7% copper (1,591 g/t
silver equivalent) over 1.3 m including: 7,130 g/t silver and 3.2%
copper (7,470 g/t silver equivalent) over 0.2 m and: 561 g/t silver
and 17.1% lead (1,177 g/t silver equivalent) over 1.5 m
- Hole 49-574: 1,378 g/t silver and 0.7% copper (1,451 g/t
silver equivalent) over 1.1 m including: 9,090 g/t silver and 4.3%
copper (9,540 g/t silver equivalent) over 0.1 m and: 1,584 g/t
silver and 0.8% copper (1,665 g/t silver equivalent) over 0.5 m
including: 6,380 g/t silver and 3.2% copper (6,700 g/t silver
equivalent) over 0.1 m
With the most recent update to its mineral reserve and mineral
resource statement as at June 30, 2021, the Company successfully
increased proven and probable silver reserves at the Galena Complex
by 38%, increased the measured and indicated silver resources by
72% and the inferred mineral silver resources by 36%. The Company
is confident that the mineral reserve and mineral resource will
continue to increase with its next mineral reserve and mineral
resource update as at June 30, 2022.
The Galena Complex property is composed of over 12,000 acres in
the Silver Valley, Idaho. The property represents the largest
property position in the Silver Valley. The property remains
underexplored despite the long history of production on the
property, with over 235 million ounces of silver produced. Galena
Complex management has outlined promising targets for continued
mineral resource growth including five prospective brownfield
target areas based on highly favourable structural geology located
in large gap areas with no drill data. The key areas that Galena
Complex management are targeting include:
- Kilbuck Trend: This was the first surface discovery on
the property back in the late 1800’s with a number of fan holes
planned for later this year. This area is largely untested and
based on success, would allow for mining areas to be accessed from
surface ramps.
- Vulcan Gap: A discovery hole is planned to test for
mineralization in the gap between the Vulcan workings and known
trends. This area is located between the Coeur and #3 shafts and
above the historical workings which started on the 2400 Level. The
area is largely untested with prospective host rocks and
structures.
- Caladay – 360 Complex: Drilling from the 4900 Level will
test the plunge line of the recently defined blue rock horizon and
the Silver Standard fault, which appear to control the
mineralization of the farthest east ore bearing trend.
- Upper Coeur: Testing of the up-dip extensions of the 400
Vein, 483 Vein and their intersections which will serve as a
precursor to surface drilling.
- Deep Caladay and 360 Complex: Continued development of
the 5500 Level further east to establish a new drill station to
enable for deep exploration and modeling.
As a result of the current and proposed exploration targets, the
Galena JV Management Committee reviewed a 5-year exploration
strategy with the objective of doubling the Galena Complex silver
resource over the next 5 years. Given the significant number of
drill targets, the Galena JV Management Committee approved the
purchase of an additional underground drill and hiring of personnel
to accelerate the exploration program.
The Company aims to commission the Galena Hoist project in
Q4-2022 which will increase hoisting capacity at the operation in
the near term with the total Galena capital budget for the year
expected to remain within 5% of the initial forecast. Cash costs
[3] per silver ounce and all-in sustaining costs [3] per silver
ounce at the Galena Complex are anticipated to decrease on a per
silver ounce basis as most of the operating costs are fixed
assuming expected higher silver and lead production beginning in
2022.
Silver production for 2023 and beyond is forecast to increase to
over 2.5 million ounces per year with a 5-year target to double
production by the end of 2027.
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 owns and operates the Relief Canyon mine in Nevada, USA,
the Cosalá Operations in Sinaloa, Mexico and manages the 60%-owned
Galena Complex in Idaho, USA. The Company also owns the San Felipe
development project in Sonora, Mexico. For further information,
please see SEDAR or www.americas-gold.com.
Qualified Persons
Niel de Bruin, P.Geo., Director of Geology of the Company and a
“qualified person” under National Instrument 43-101, has approved
the applicable contents of this news release.
Technical Information
The diamond drilling program used NQ-size core. The Company’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.
All mining terms used herein have the meanings set forth in
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”), as required by Canadian securities
regulatory authorities. These standards differ from the
requirements of the SEC that are applicable to domestic United
States reporting companies. Any mineral reserves and mineral
resources reported by the Company in accordance with NI 43-101 may
not qualify as such under SEC standards. Accordingly, information
contained in this news release may not be comparable to similar
information made public by companies subject to the SEC’s reporting
and disclosure requirements.
Cautionary Statement on Forward-Looking Information:
This news release contains “forward-looking information” within
the meaning of applicable securities laws. Forward-looking
information contained in this news release 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 metals, the expected prices of gold, silver and
other metals, as well as the related costs, expenses and capital
expenditures; production from the Galena Complex, including the
expected production levels and potential additional mineral
resources and the ongoing results of exploration efforts thereat.
Guidance and outlook contained in this press release was prepared
based on current mine plan assumptions with respect to production,
costs and capital expenditures, the metal price assumptions
disclosed herein, completion of installation and commissioning of
the Galena Hoist work by Q4-2022, and assumes no adverse impacts to
operations from the COVID 19 pandemic and is subject to the risks
and uncertainties outlined below. 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 operate the Company’s projects; and risks associated
with the mining industry such as economic factors (including future
commodity prices, currency fluctuations and energy prices), ground
conditions, illegal blockades and other factors limiting mine
access or regular operations without interruption, 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 operates. 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 Silver equivalent 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 is based on
orientation axis of core across the estimated dip of the vein.
3 This metric is a non-GAAP financial
measure or ratio. The Company uses the financial measures “Cash
Costs”, “Cash Costs/Ag Oz Produced”, “All-In Sustaining Costs”, and
“All-In Sustaining Costs/Ag Oz Produced” in accordance with
measures widely reported in the silver mining industry as a
benchmark for performance measurement and because it understands
that, in addition to conventional measures prepared in accordance
with IFRS, certain investors and analysts use this information to
evaluate the Company’s underlying cash costs and total costs of
operations. Cash costs are determined on a mine-by-mine basis and
include mine site operating costs such as mining, processing,
administration, production taxes and royalties which are not based
on sales or taxable income calculations, while all-in sustaining
costs is the cash costs plus all development, capital expenditures,
and exploration spending.
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version on businesswire.com: https://www.businesswire.com/news/home/20220623005372/en/
For more information: 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)
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