TORONTO, July 14, 2014 /CNW/ - U.S. Silver & Gold Inc.
(TSX: USA, OTCQX: USGIF) ("U.S.
Silver & Gold" or the "Company") today announced second quarter
production figures for its Galena Mine Complex in Idaho.
Highlights
- Production of approximately 521,000 silver ounces and 650,000
silver equivalent ounces1 for the second quarter of
2014, at a silver cash cost of $12.31
per ounce and an all-in sustaining cost of $15.36 per ounce.
- Extensive cost-cutting initiatives and productivity
improvements implemented over the last year delivered reductions of
25% in cash costs and 35% in all-in sustaining costs
year-over-year.
- Silver, lead and copper production increased by 35%, 100% and
22% respectively compared with Q1, 2014 and silver equivalent
production rose by 41%.
- The Company is on-track to deliver approximately 2.0 – 2.4
million silver ounces in 2014 at cash costs of $14.50 – $15.50 per
ounce and all-in cash costs of $18.00
– $19.00 per ounce.
- A collective bargaining agreement was ratified by workers at
the Galena Complex on June 12, 2014,
which will be in effect until June
2017. The agreement contains economic concessions from the
bargaining unit that will be reviewed in June 2016.
- As of June 30, 2014, the
Company's cash balance totaled approximately $7.2 million
The Company expects to release its second quarter financial
results on August 13, 2014.
"This quarter's operating results follow a year of sacrifice and
hard work that we undertook to restructure the Galena Complex and
allow us to be profitable in the current lower price environment,"
said Darren Blasutti, President and
CEO of U.S Silver & Gold Inc. "Since Q3, 2012 we have reduced
cash costs by almost 40% and lowered all-in sustaining costs by
roughly 55%. We believe these results are not only
sustainable but, we see them as benchmarks we can improve on going
forward. We will continue to transition from low tonnage, narrow,
silver/copper production to wider, more profitable high tonnage
silver/lead stopes for the remainder of the year."
Galena Complex Second Quarter Production Details
The
Galena Complex produced 520,723 ounces of silver during the second
quarter of 2014 at an average grade of 13.5 ounces per ton and a
cash cost of $12.31 per ounce of
silver. Production for the quarter rose by 35% as stopes that
had been undergoing planned sand cycles during the first quarter
became available and staff transitions from silver/copper stopes to
wider, silver/lead stopes were completed. Broad cost-cutting
initiatives implemented over the last 12 months continued to
benefit the bottom line. Cash costs fell 34% compared with the
first quarter of 2014 and 25% year-over-year; while, all-in
sustaining costs were reduced by 36% quarter-over-quarter and 35%
year-over-year.
Table
1
Galena Complex
Production Highlights
|
|
Q2
2014
|
Q1
2014
|
Change
|
Q2
2013
|
Change
|
Processed Ore
(tons milled)
|
40,166
|
38,646
|
+4%
|
58,585
|
-31%
|
Silver
Production (ounces)
|
520,723
|
385,503
|
+35%
|
629,227
|
-17%
|
Silver Grade
(ounces per ton)
|
13.49
|
10.45
|
+29%
|
11.14
|
+21%
|
Cash Costs ($
per ounce silver)
|
$12.31
|
$18.64
|
-34%
|
$16.41
|
-25%
|
All-in Sustaining
Costs ($ per ounce silver)
|
$15.36
|
$23.95
|
-36%
|
$23.65
|
-35%
|
Lead
Production (pounds)
|
2,040,198
|
1,020,285
|
+100%
|
2,636,089
|
-23%
|
Copper
Production (pounds)
|
215,302
|
176,825
|
+22%
|
268,392
|
-20%
|
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.