Americas Gold and Silver Corporation (“the Company”)
(TSX: USA, NYSE American: USAS) is pleased to provide an
update on its ongoing work programs at the Galena Complex
(“Galena”) following the closing of the Galena consolidation and
recapitalization transaction (the “Transaction”) closed on December
19, 2024 (see associated press release dated December 19,
2024).
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the full release here:
https://www.businesswire.com/news/home/20250224871832/en/
Figures 1, 2, 3 & 4: New Equipment
Ordered (Image credit: Americas Gold and Silver Corporation)
Significant progress has been made in identifying opportunities
and initiating action as part of the Company’s technical review and
optimization work to ensure that the Galena Complex reaches its
full production potential, underscoring the Company's ongoing
commitment to operational efficiency, safety, production growth,
and maximizing value from existing assets. This progress includes
initial work on the #3 shaft, a trade off study currently underway
at the mine and the ordering of new mining equipment to boost
productivity underground. The Company is also pleased to release
new drilling results that continue to demonstrate the geologic
prospectivity of the deposit and identify new veins that could be
brought into production with further drilling. Lastly, as a result
of an initial review of byproduct metallurgical performance, the
Company has also initiated further test work to evaluate the
potential to maximize recoveries of copper and antimony.
Key Highlights:
- #3 Shaft Hoist Upgrades Underway – The Company has
identified hoisting capacity as the primary bottleneck at the
Galena Complex. A multi-step upgrade plan for the #3 Hoist includes
increasing motor size, modifying the motor base, brake and control
system improvements, and installing a down-rope shaft communication
system. Completion is expected in Q4 2025.
- New Equipment Acquisition – To improve safety,
efficiency, and productivity, the Company has ordered five new
pieces of underground equipment, including one 4yd LHD, two 2yd
LHDs, and two 20-ton haul trucks. Initial deliveries are expected
in Q1 2025, with commissioning in Q2 2025.
- Metallurgical Sampling in Progress – A metallurgical
test program has been initiated to optimize concentrate sales by
assessing by-product recovery and payability. 1,000 drill hole
pulps from past Ag-Cu vein intersections have been shipped for
multi-element analysis, and flotation testing is underway at SGS
Laboratories in Lakefield, Canada to maximize recoveries of silver,
copper, antimony, and gold.
- Discovery of the 049 Vein – A new high-grade
silver-copper vein was intercepted while targeting the 072 vein.
Notable results include up to 1,731 opt Ag (53,839 g/t) and 16.3%
Cu over 0.15m true width. Three additional drill holes are in
progress to further define the resource and integrate it into
near-term production plans.
- 368 Vein Infill Drilling Program – Recent infill
drilling in the 360 Complex has confirmed the continuity of
economic mineralization and identified the shifting of higher
grades shift into a parallel shear structure. The results support
continued mining in this zone, with new development and resource
conversion ongoing.
Paul Huet, CEO of Americas Gold and Silver, commented: “The
first two months of review and optimization work undertaken at the
Galena Complex have been remarkably productive. I have been very
impressed by the energized workforce and the tremendous potential
of our primary silver asset. In my 35 years of mining, I have been
fortunate to lead several operational improvement projects, and I
am encouraged by both the opportunities and the commitments I have
seen from the team at Galena during our first 60 days as part of
the new Americas team.
Our review of the primary #3 hoisting shaft has yielded some
strong near-term and longer-term upgrade projects. We have also
ordered five new pieces of equipment, with initial deliveries this
quarter. On the exploration front, the Galena Complex continues to
demonstrate its exceptional exploration potential under the new
leadership team. The discovery of the 049 Vein, along with the
discovery of the new 181 & 182 Veins and the 368 Vein,
reaffirms our confidence in the long-term sustainability of this
asset. Finally, our review of metallurgical opportunities
identified during our due diligence has led to immediate action
with new sampling programs underway to optimize our concentrate by
product potential by capturing previously untapped metal value.
As we move forward with these exciting programs, we remain
committed to improving the productivity of the operation through a
safety-focused approach. We look forward to sharing further
progress on all of our initiatives in the coming months.”
Operational Revitalization through Technical Review and
Optimization Projects
The Company is investing significantly both in terms of capital
projects and equipment as well as management focus and operational
team excellence with the aim to potentially return the Galena
Complex back to historical production levels through growth and
operational efficiency improvements.
Major projects already underway include:
- Upgrades to #3 Hoist and Shaft
- Acquisition of five new pieces of underground mobile
equipment
- Comprehensive mine-wide trade off studies
- Metallurgical sampling program to identify by-product revenue
optimization opportunities
Upgrades to #3 Hoist
Hoisting capacity has been identified as the primary bottleneck
to increasing future production at the Galena Complex. Following
technical review, the Company has developed a multi-step plan to
begin improving productivity at the #3 Hoist, which is the primary
production hoist. The project aims to boost total hoisting capacity
significantly beyond the current 700tpd of total material hoisting.
The four primary components to this capital improvement are:
- Increasing motor size: The Company owns two 2,250HP
motors that are currently being refurbished by a supplier in nearby
Spokane, WA which will upgrade the current 1,750HP motor.
- Upgrade the existing motor base for the new motors: A
modest amount of construction work is required to modify the
pedestal which holds the current motor.
- Complete brake and Lilly upgrades: to allow for faster
ascent and decent and improved operational control to optimize skip
loading and hoisting cycle times.
- Installing a down rope shaft communication system with load
link: Modernizing the #3 Hoist by providing real time skip
loading weights and improved hoisting controls with short interval
control data collection for continual improvements to hoist safety
and productivity.
The #3 hoist upgrades are expected to be complete during Q4
2025.
Equipment Acquisition & Trade Off Studies
The Company moved quickly in Q4 2024 to buy equipment and
improve the existing mobile equipment fleet to provide immediate
improvements to safety, efficiency, and productivity. This included
securing five new pieces of equipment, further modernizing
underground operations. Delivery of the equipment is expected
during Q1 2025, with the equipment being rebuilt and commissioned
underground in Q2 2025. The initial equipment purchase
includes:
- One 4yd LHD
- Two 2yd LHDs
- Two 20t Trucks
Comprehensive Mine Wide Trade Off Studies
The Company has begun a series of technical planning exercises
and mine-wide trade off studies to comprehensively align the needs
of mine production to the infrastructure and equipment required to
unlock the improvements. These studies will utilize internal
expertise as well as external consultants over the next several
months and are expected to guide the Company on priority production
areas, new infrastructure and upgrades to existing infrastructure.
Further updates on the findings will be provided in the coming
months.
Metallurgical Optimization
The Galena Complex continuously achieves excellent silver and
lead recoveries; however, one of the early opportunities identified
through a comprehensive audit of historical concentrate production
is the opportunity to optimize concentrate sales by enhancing
by-product recovery and payability. A historical analysis of
shipped flotation concentrates from Galena since the year 2000
indicates significant payable by-products were present in past
production. Since 2015, only a Pb/Ag concentrate has been sold,
with no revenue realized for copper, antimony, or gold content. In
order to better understand this opportunity, a metallurgical test
program has been initiated to assess the potential of optimizing
recoveries of all payable metals. The program involves:
- 1,000 drill hole pulps from past Ag-Cu vein intersections have
been shipped for multi-element analysis.
- Flotation testing is underway at the industry leading SGS
Laboratory in Lakefield, Canada, focused on:
- Maximizing recoveries of silver, copper, antimony, and
gold.
- Evaluating the viability of differential flotation to generate
separate Pb/Ag and Cu/Ag concentrates.
Results from the metallurgical study will be used to guide
future mill process improvements providing potential revenue
enhancements.
Operational Excellence
The management team and the board strongly believe in the full
potential of the Galena Complex and are dedicated to unlocking its
existing potential. This commitment has been evident since the
closing of the Transaction with the continuous presence of the
executive team on site and the addition of a number of new hires to
both the corporate and management team on site providing real-time
training support to mine leadership and operations. These early
actions are necessary to create a step change in performance at the
operation. The team has successfully improved data collection and
reporting which has led to a number of modifications to existing
procedures to improve task execution and efficiency. The new
focused approach has generated several quick wins and has begun to
build a culture of operational team excellence on site where all
employees participate in idea generation and execution of new
processes. The results and responses to date have been
positive.
Exploration Update
Recent drilling campaigns have identified three new potentially
economic veins as well as completing a successful infill program to
de-risk near term production. The strong exploration results are
reflective of the high exploration potential and geologic endowment
at the Galena Complex, leading to the discovery of the 049, 181 and
182 veins. The 368 vein has also been successfully infill drilled
ahead of production.
Discovery of 049 Vein at 5500 Galena Diamond Drill
Station
A previously undiscovered vein was intercepted while targeting
the 072 vein. The new 049 vein has returned exceptional silver and
copper grades. Geologic modeling identified eight additional
intercepts along the vein structure as outlined in the results
below. Three additional drill holes are in progress to further
define the potential resource and to create mining plans to add
this high-grade area into near term production. New high-grade
silver veins continue to be discovered at Galena, reinforcing the
long-term potential of the operation. The most significant
intercepts through the 049 vein are:
- Hole 52-514: 6,246 g/t (200.8 opt) silver, 1.7%
copper over 0.49 m true width[1]
- Hole 52-550: 7,853 g/t(252.5 opt) silver, 2.3% copper
over 0.27 m true width[1]
- Hole 52-553: 53,839 g/t (1,731.0 opt) silver, 16.3%
copper over 0.15 m true width[1]
The 049 vein was initially encountered in a previously reported
interval on January 23, 2024 in hole 52-507 containing:
- Hole 52-507: 6442.1 g/t (207.2 opt) silver and
1.8% copper over 0.37 m true width[1]
181 & 182 Vein Discovery
Drilling from the 49-132 Loop 5 diamond drill station identified
two new parallel silver-lead (Ag/Pb) veins situated near the 4900
Ramp system, approximately 15 meters (50 feet) northeast of the
drill station. Development access has since crosscut these veins,
and initial mining has commenced. Mining plans have been adjusted
to incorporate this discovery as a new production stope and
development is in progress.
The 181/182 veins were discovered in 2024 and the geology was
immediately identified as having a positive significant impact on
mining and production. The veins are open at depth and above with
both extensional and infill drilling scheduled for later this year.
From the next drill station on 4600L, which is located in an
actively producing mining area. The Company is confident in the
potential to extend the size of these two prospective vein
areas.
368 Vein Infill Drilling Program
The 360 Complex is an active mining area in the eastern portion
of the mine currently accessed from the 4900L. The 360 Complex has
contributed profitable tons over the past several years as the ramp
system has developed up towards the 4600L. An infill program
confirmed the continuation of economic mineralization following the
structure up dip of the 360 Vein, with higher grades appearing to
jump to a parallel vein structure within a broader shear zone which
is currently an active significant production area. Highlighted
drill results include:
- Hole 49-768: 353 g/t (10.3 opt) silver, 9.8% lead
over 2.65 m true width[1]
- Hole 49-764: 302 g/t (8.8 opt) silver, 9.2% lead over
2.04 m true width[1]
Ongoing infill drilling to convert resources also demonstrate
grade increases to the west of the current mining area. Current
forecasted grade and tons represents a significant source of feed
material to support the planned increase in mined and milled tons
as part of the planned revitalization of Galena.
A full table of drill results can be found at:
https://americas-gold.com/site/assets/files/4297/dr20250224.pdf
About Americas Gold and Silver Corporation
Americas Gold and Silver is a growing precious metals mining
company with multiple assets in North America. The Company owns and
operates the Cosalá Operations in Sinaloa, Mexico, and in December
2024, the Company acquired 100% ownership in the Galena Complex
(located in Idaho, USA) in a transaction with Eric Sprott and a
Paul Huet-led management team, further strengthening its position
as a leading silver producer. Eric Sprott is now the largest
shareholder in the company, holding a ~20% interest. Additionally,
the Company owns the San Felipe development project in Sonora,
Mexico. With these strategically positioned assets, Americas Gold
and Silver is striving to become one of the top North American
silver-focused producers with an objective of over 80% of its
revenue generated from silver by the end of 2025.
Technical Information and Qualified Persons
The scientific and technical information relating to the
operation of the Company’s material operating mining properties
contained herein has been reviewed and approved by Chris McCann,
P.Eng., VP Technical Services of the Company. The Company’s current
Annual Information Form and the NI 43-101 Technical Reports for its
other material mineral properties, all of which are available on
SEDAR at www.sedar.com, and EDGAR at www.sec.gov, contain further
details regarding mineral reserve and mineral resource estimates,
classification and reporting parameters, key assumptions and
associated risks for each of the Company’s material mineral
properties, including a breakdown by category.
The diamond drilling program used NQ-size core and BQ-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 includes, but is not limited to, Americas 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; Company’s technical review and optimization
work at the Galena Complex; operational improvements and production
from the Galena Complex, including the expected production levels
and anticipated improvements through production growth and
operational efficiency, and potential additional mineral resources
thereat; the expected timing and completion of the Galena hoist and
shaft improvements, mine-wide trade-off studies and equipment
upgrades and the expected operational and production results
therefrom, including the anticipated improvements to total capacity
and operational efficiency, to the cash costs per silver ounce and
all-in sustaining costs per silver ounce at the Galena Complex
following completion; opportunities relating to the optimization of
concentrate sales by enhancing by-product recovery and payability;
and the timing and results of its metallurgical sampling program to
identify by-product revenue optimization opportunities and the
anticipated improvements therefrom; and the initial results and
expectations arising out of the Company’s exploration and drilling
programs at the Galena Complex. 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” ‘ensure” 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 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 to be materially different from those expressed or
implied by such forward-looking information. With respect to the
business of Americas , these risks and uncertainties include risks
relating to widespread epidemics or pandemic outbreak;
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; potential litigation; 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,
risks associated with generally elevated inflation and inflationary
pressures, risks related to changing global economic conditions,
and market volatility, risks relating to geopolitical instability,
political unrest, war, and other global conflicts may result in
adverse effects on macroeconomic conditions including volatility in
financial markets, adverse changes in trade policies, inflation,
supply chain disruptions 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. Additional information regarding the factors that may
cause actual results to differ materially from this forward‐looking
information is available in Americas filings with the Canadian
Securities Administrators on SEDAR and with the SEC. Americas 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 does not give any
assurance (1) that Americas will achieve its expectations, or (2)
concerning the result or timing thereof. All subsequent written and
oral forward‐looking information concerning Americas are expressly
qualified in their entirety by the cautionary statements above.
1 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250224871832/en/
For further information, please contact: Maxim Kouxenko -
Manager, Investor Relations M: +1(647) 888-6458 E:
ir@americas-gold.com W: americas-gold.com
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