TORONTO, April 30, 2014 /CNW/ - U.S. Silver & Gold
Inc. (TSX: USA, OTCQX: USGIF)
("U.S. Silver & Gold" or the "Company") today announced
production figures for its Galena Mine Complex in Idaho.
Highlights
- Galena Complex production for the quarter of 460,490 silver
equivalent ounces1 including 385,503 silver ounces which
represents a 33% decrease in silver production compared with Q1,
2013. As previously announced in the January
20, 2014 and March 24, 2014
press releases, the Company had forecasted Q1, 2014 to be the
lowest production and highest cost quarter of the year. Cash costs
for the quarter were $18.64 per ounce
silver, a reduction of 9% over Q1, 2013.
- Guidance for 2014 silver production remains at 2.0 - 2.4
million ounces at cash costs of $14.50 -
$15.50 per ounce and all-in cash costs of $18.00 - $19.00 per ounce.
- Two main factors contributed to the expected lower production
in the first quarter: 1) planned sand cycles to a number of
productive high-grade silver/copper stopes between mid-February and
early March caused overall silver grade to drop by 27% versus
fourth quarter 2014; and 2) the transition of workers mining
lower-grade silver/copper stopes to development of new wider,
higher value silver/lead stopes. This transition is expected
to lead to higher silver equivalent production and significantly
lower cash and all-in costs for the remainder of the year.
- April production has already shown a material increase in
silver, lead and copper production, with production well-exceeding
the production rates from the fourth quarter of 2013 and the first
quarter of 2014. Second quarter silver production is expected to
exceed 500,000 ounces and exceed 600,000 silver equivalent
ounces.
- Cost initiatives implemented last year continue to show
improvement in the bottom line. Although first quarter silver
production was down 33% compared with the same period in 2013, cash
costs and all-in cash costs were reduced by almost 9% and 15%
respectively. The Company is constructively working with our
salaried and unionized workforce to target an additional
$2 million in annualized savings
through labour and benefit adjustments in addition to the ongoing
cost reduction initiatives already in place. These savings will be
reinvested into the development of wider, high grade silver/lead
stopes in the upper areas of the mine. These stopes will be lower
cost as they are wider, allow for mechanized mining and provide
higher tonnage. The grades of these targeted areas are 15 - 20
ounce per ton silver equivalent.
- As of March 31, 2014, the
Company's cash balance totaled approximately $7.3 million.
The Company expects to release its first quarter financial
results on Tuesday, May 13, 2014.
"As previously highlighted, the first quarter was expected to be
our lowest production, highest cost quarter of the year, as we
mined lower grade silver/copper stopes due to expected sand cycles
in a number of our highest grade areas, and began the transition to
mine the wider, higher silver equivalent grade silver/lead veins in
the upper levels of the mine," said Darren
Blasutti, President and CEO of U.S. Silver & Gold. "Our
guidance for full year production and costs remains unchanged.
Silver production in the second quarter will increase to over
500,000 ounces of silver and exceed 600,000 silver equivalent
ounces at cash costs and all-in costs within our guidance
range."
Galena Complex First Quarter Production Details
The Galena Complex produced 385,503 ounces of silver during the
first quarter of 2014 at a grade of 10.4 ounces per ton and a cash
cost of $18.64 per ounce of silver.
As expected, production for the quarter decreased by 33% because a
number of high-grade stopes were unavailable due to planned sand
cycles, and personnel were transitioning from lower grade
silver/copper stopes to the development of wider, higher grade
silver/lead stopes. Further, high grade silver/lead stopes on the
5200 level were inaccessible for mining during the first quarter as
the Company continued to make progress in resolving citations
related to routine maintenance in #3 Shaft. This work is being
completed in accordance with plans submitted to the Mine Safety and
Health Administration and these stopes will be accessible during
the second quarter, and for the remainder of the year. Cash costs
during the quarter fell by 9%, a significant reduction over costs
during the first quarter of 2013, despite this being the lowest
production quarter of the year.
Table
1
Galena Production
Highlights
|
|
Q1
2014
|
Q1
2013
|
Change
|
Q4
2013
|
Processed Ore
(tons milled)
|
38,646
|
62,826
|
-38%
|
32,377
|
Production
(ounces)
|
385,503
|
577,095
|
-33%
|
449,652
|
Grade (ounces
per ton)
|
10.45
|
9.55
|
9%
|
14.37
|
Cash
Costs
|
$ 18.64
|
$ 20.48
|
-9%
|
$
6.26
|
All-in Sustaining
Costs ($ per ounce silver)
|
$ 23.95
|
$ 28.29
|
-15%
|
$ 21.02
|
Lead
(pounds)
|
1,020,285
|
1,772,256
|
-42%
|
1,453,811
|
Copper
(pounds)
|
176,825
|
261,618
|
-32%
|
227,047
|
|
|
|
|
|
|
Quality Assurance / Quality Control ("QA/QC")
U.S. Silver & Gold maintains a QA/QC Program for all assays,
including the use of standards, blanks and duplicates. All QA/QC
results are routinely evaluated using a program of QA/QC
monitoring. Details of the program are provided in the
Company's NI 43-101 compliant Technical Report on the Galena
Project dated March 22, 2013.
About U.S. Silver & Gold Inc.
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 and is the second most prolific silver mine in
U.S. history, delivering over 200 million ounces to date. The
Caladay Zone is being evaluated for bulk mining development. U.S.
Silver & Gold also owns the Drumlummon Mine Complex in
Lewis and Clark County,
Montana.
Mr. Daren Dell, Vice President,
Technical Services 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
www.us-silver.com.
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 & 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.
1 Silver equivalent calculation is based on prices of
$20 per ounce silver, $0.95 per pound lead and $3.00 per pound copper.
SOURCE U.S. Silver & Gold Inc.