TORONTO, Jan. 20, 2014 /CNW/ - U.S. Silver & Gold Inc.
(TSX: USA) (OTCQX: USGIF)
("U.S. Silver & Gold" or the "Company") today announced
fourth quarter and 2013 full year production figures for its Galena
Mine Complex and guidance for 2014.
Highlights
- Production of approximately 450,000 silver ounces and 543,000
silver equivalent1 ounces for the fourth quarter of 2013
at a silver cash cost of $16.25 per
ounce and an all-in sustaining cost per ounce of $21.002 despite a 10-day shaft
shutdown at the Galena Complex in mid-December.
- Full year Galena Complex production of 2.12 million silver
ounces at a silver cash cost of $17.75 and all-in sustaining costs of
$24.25. Year-over-year silver
production down 6%, cash costs per silver ounce reduced 7% and
all-in sustaining costs decreased 20%.
- The Small Mine Plan implemented early in the third quarter of
2013 delivered significant cost reductions and increased silver
cut-off grade by 33% to over 15 ounces per ton silver
equivalent. Silver head grade for the quarter rose 34% to
14.38 ounces per ton and increased 12% for the year to 11.31 ounces
per ton.
- 2014 Galena Complex silver production forecast to be 2.2 – 2.4
million ounces with projected silver cash costs of $14.50 - $15.50 per ounce and all-in sustaining
cash costs of $18.00 - $19.00 per
ounce. This represents an 8% increase in production, a 15%
reduction in cash costs and a 24% decrease in all-in sustaining
cash costs over full year 2013. As in the previous year, the
Company expects to see continued cost improvement throughout fiscal
2014.
- Year-end cash balance of approximately $7.2 million as at December 31, 2013.
Year-end financial statements for U.S. Silver & Gold are
scheduled to be released by March 27,
2014. References to cash, cash costs and all-in sustaining
cash costs for both the quarter and full year are unaudited and may
change based on final audited results.
"We made significant progress in 2013, reducing costs,
increasing grade and achieving our production guidance for the
year," said Darren Blasutti,
President and CEO of U.S. Silver & Gold. "Given the
current silver price environment, we made a strategic decision
mid-year to focus on delivering higher grade silver at lower
tonnage levels by introducing the Small Mine Plan which
considerably reduced our operating costs, capital expenses and
exploration budget. In 2014, we expect to increase silver
production slightly while further reducing silver cash costs to
approximately $15.00 per ounce and
all-in cash costs to between $18.00 and
$19.00 per ounce. Management took over the Galena
Complex in late August 2012 and is on
pace to reduce all-in cash costs by 45 percent since the third
quarter of 2012."
___________________________
1 Silver
equivalent ounces produced is based on prices of $22 per ounce silver, $0.90 per pound lead, and $3.25 per pound copper for Q4 2013.
2 Silver industry cash cost plus all development,
capital expenditures, exploration spending and mine general and
administrative costs.
Galena Complex Production Update
The Galena Mine delivered strong production of 449,652 silver
ounces during the fourth quarter of 2013 and 2.12 million ounces
for the full year despite receiving an order from the Mine Safety
and Health Administration requiring the Company to shut down Shaft
#3 for 10 days pending resolution of previously existing citations
that did not allege any imminent danger. Had this production loss
not occurred, the mine would have surpassed its production goal for
the quarter and the mid-point of its guidance for the year.
Prior to the shutdown, the Company was on track to produce roughly
500,000 silver ounces at a cash cost of $15.00 per ounce and an all-in sustaining cost
below $20.00 per ounce.
Ore grade for the fourth quarter was 14.38 ounces per ton, and
11.31 ounces per ton for the year compared with 10.70 ounces per
ton in the fourth quarter of 2012 and 10.09 ounces per ton for the
year. This represents an increase of 34 percent for the
quarter and 12 percent year-over-year.
Table
1
Galena Production
Highlights
|
|
Q4
2013
|
Q4
2012
|
Change
|
YTD
2013
|
YTD
2012
|
Change
|
Processed Ore
(tons milled)
|
32,377
|
60,497
|
-46%
|
194,534
|
231,496
|
-16%
|
Production
(ounces)
|
449,652
|
625,604
|
-28%
|
2,120,824
|
2,248,835
|
-6%
|
Grade (ounces
per ton)
|
14.38
|
10.70
|
+34%
|
11.31
|
10.09
|
+12%
|
Cash Costs ($
per ounce silver)*
|
$
16.26
|
$
18.62
|
-13%
|
$
17.76
|
$
19.02
|
-7%
|
All-in Sustaining
Costs ($ per ounce silver)
|
$
21.02
|
$
28.56
|
-26%
|
$
24.24
|
$
30.14
|
-20%
|
Lead Produced
(pounds)
|
1,453,811
|
1,403,481
|
+4%
|
6,567,821
|
5,264,023
|
+25%
|
Copper
Produced (pounds)
|
227,047
|
298,241
|
-24%
|
1,001,710
|
1,027,991
|
+3%
|
* During 2012, the Company changed its presentation of cash
costs to report under a payable ounces basis to conform to
presentation used by other comparable entities within the silver
mining industry. Previous disclosures have been restated to
conform with the amended presentation.
2014 Guidance
Silver production of between 2.2 and 2.4 million ounces is
expected for 2014. This represents an 8 percent increase over
silver production in 2013. Cash costs are projected to be
between $14.50 and $15.50 per ounce
which represents a 15 percent reduction over 2013, and all-in
sustaining cash costs are projected to be between $18.00 and $19.00 per ounce, a 24 percent
decrease over 2013.
About U.S Silver & Gold
U.S. Silver & Gold is a silver and gold mining company
focused on growth from its existing asset base and execution of
targeted accretive acquisitions. It owns and operates the Galena
Mine Complex in the heart of the Silver
Valley/Coeur d'Alene Mining District, Shoshone County, Idaho which produces
high-grade silver ore and is the second most prolific silver mine
in U.S. history, delivering over 200 million ounces to date. U.S.
Silver & Gold also owns the Drumlummon Mine Complex in
Lewis and Clark County,
Montana.
For further information please see SEDAR or www.us-silver.com
for the NI 43-101 compliant Technical Report on the Galena Project
dated March 22, 2013.
Cautionary Statement Regarding 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, and beliefs with respect to, among
other things, the Galena Complex and the Drumlummon Mine. Often,
but not always, forward‐looking information can be identified by
forward‐looking words such as "anticipate", "believe", "expect",
"goal", "plan", "intend", "estimate", "may", 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 Galena and Drumlummon properties, risks associated
with the mining industry such as economic factors (including future
commodity prices, currency fluctuations and energy prices), failure
of plant, equipment, processes and transportation services to
operate as anticipated, environmental risks, government regulation,
actual results of current exploration 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 U.S.
Silver and Gold 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 those 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.
SOURCE U.S. Silver & Gold Inc.