Americas Silver Corporation (TSX:USA) (NYSE “MKT”:USAS)
(“Americas Silver” or the “Company”) today provided an exploration
update for its Galena Complex located in Idaho, USA and its Cosalá
Operations located in Sinaloa, Mexico.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20170531005517/en/
Figure 1 - 4900 Level (Graphic: Business
Wire)
Exploration Highlights
Galena Complex
- A new silver-lead zone (366 FW Vein)
was discovered within 30 meters of existing reserves in the
footwall of the 360 Vein on the 4900 Level. Significant intercepts
include 2.8 meters at 347g/t silver and 14.0% lead and 12.8 meters
at 116g/t silver and 5.6% lead.
- Drilling on the 3400 Level in a
previously unexplored area encountered a new zone of strong
silver-lead mineralization 135 meters south of existing
workings.
- Step out drilling on the 4000 Level
extended known mineralization 90 meters laterally and 50 meters
vertically. Significant intercepts include 17.2 meters at 154g/t
silver and 7.3% lead and 2.6 meters at 340g/t silver and 15.9%
lead.
Cosalá Operations
- Infill drilling at the southern part of
San Rafael’s Main Zone confirmed the existing zinc-silver-lead
resource model in preparation for first ore production at the end
of the third quarter.
- San Rafael’s Zone 120 infill and
extension drilling was completed. Assay results are pending but
core logging indicates that existing silver-copper mineralization
extends an additional 350 meters to the southeast and remains open
in that direction. The newly discovered mineralization is less than
600 meters from the El Cajón silver-copper mine.
- Drilling at Los Manueles has started
with initial results expected before the end of the second
quarter.
“The 2017 exploration program is off to a fantastic start,” said
Americas Silver Chief Operating Officer Daren Dell. “Only five
months into the year and we have new discoveries at the Galena
Complex which will positively impact the mine plan in the near term
and provide optimism for future resource growth. At Cosalá, a
significant extension of the San Rafael Zone 120 mineralization
combined with our existing El Cajón mine points toward a new
development scenario where our silver-copper resource could support
a production centre.”
Galena Exploration
On the 4900 Level, the 366 FW Vein was recently discovered
following drilling to extend the 360 Vein above and to the west of
known resources. Eighteen holes of a twenty-hole drill program
totaling 2,080 meters have been completed with significant
intercepts shown in Table 1. The 366 FW Vein is located on the
eastern side of the 4900 Level as shown in Figures 1 and 2. Current
information indicates the 366 FW Vein extends approximately 120
meters vertically and has a strike length of 180 meters. Width is
variable and may be suited for mechanized mining. This drilling
also provided additional confidence on the existing reserves for
the 360 Vein. Results from this drilling will be included in the
mid-year Mineral Reserve and Mineral Resource update to be
published in the third quarter. Both veins are open in both
vertical directions and follow-up drilling is anticipated to test
their extent.
Table 1 – Significant Intercept Results
for the 366 FW Vein1
Hole Zone
From (m)
To (m)
True Width(m)
Ag (g/t)
Pb (%)
49-438 366 FW 104.2 107.3 2.4
181 13.6 49-444 366 FW 74.3 78.9
2.4 173 8.2 49-445 366 FW 98.8
105.9 6.7 219 8.6 Including 366 FW
100.9 104.5 2.8 347 14.0 49-456
366 FW 46.9 49.0 1.8 238
9.3 49-458 366 FW 47.2 60.8 12.8
116 5.6 Including 366 FW 53.3 57.3
3.7 221 10.3 49-459 366 FW 42.9
48.2 4.9 319 12.6
A 1,390 meter, three-hole greenfield type exploration program
was completed on previously untested ground along the Polaris Fault
Zone (PFZ) and across several fault zones. Drilling is being done
from the 3400 Level south of the main development with final assay
results expected in early June 2017. The first hole, Hole 34-204,
intersected 19 meters of silver-lead mineralization approximately
135 meters down the hole. Holes 34-205 and 34-206 did not intersect
significant mineralization. Plans for follow-up drilling will be
considered once all information from this program has been
incorporated into the local geological model.
Table 2 – Significant Intercepts
Results for 3400 Level Drilling1
Hole Zone
From(m)
To(m)
True Width(m)
Ag(g/t)
Pb(%)
34-204 3400-Pb 133.5 152.1 18.6
81 5.2 Including 3400-Pb 139.0 152.1
2.4 189 11.9 34-204 3400-Pb
155.6 162.6 7.0 120 6.2 Including
3400-Pb 155.6 160.5 4.9 161
8.2
Typifying the ongoing work at the Galena Complex, resource
expansion drilling is almost complete on the 116 Vein on the 4000
Level as shown in Figure 2. Thirteen holes of a sixteen-hole drill
program totaling 765 meters have been completed. Drill results will
be used to expand and upgrade the associated mineral resource and
generate preliminary production designs. The mineralized zone
remains open vertically in both directions. Future drilling from
the 3700 and 4300 Levels will test the vertical extents of the
zone.
Table 3 – Significant Intercepts
Results for 4000-116 Drilling1
Hole Zone
From(m)
To(m)
True Width(m)
Ag(g/t)
Pb(%)
40-382 116 Vn 27.4 44.2 14.5 161
8.4 Including 116 Vn 27.4 30.5
2.6 340 15.9 40-383 116 Vn 28.2
45.1 16.7 150 6.3 Including 116 Vn
29.1 40.8 11.6 190 8.0 40-384
116 Vn 21.3 37.0 13.6 155
6.6 Including 116 Vn 27.4 31.5 3.5
326 11.7 40-385 116 Vn 29.7 39.0
9.2 166 8.1 40-387 116 Vn 20.4
28.6 8.2 139 8.1 40-389 116 Vn
15.9 25.9 8.2 165 8.6 40-392
116 Vn 14.8 32.0 17.2 154
7.3 Including 116 Vn 22.9 27.7 4.9
312 13.1
Cosalá Exploration
An infill drilling program targeting the south part of the
zinc-silver-lead Main Zone at San Rafael was recently completed.
The program consisted of twenty holes totaling 1,901 meters.
Results support and confirm the resource model and mine planning
done in the Prefeasibility Study.
Drilling at the silver-copper Zone 120 deposit at San Rafael was
recently completed to upgrade and extend the zone of
mineralization. The program consisted of eight holes totaling 2,700
meters. Assay results are pending and will be incorporated into the
Company’s mid-year Mineral Reserve and Mineral Resource update to
be published late in the third quarter. Results from this program
are expected to be released before the end of second quarter. The
mineralization extends the Zone 120 approximately 350 meters to the
southeast, bringing the deposit within 600 meters of the El Cajón
mine where the Company has been mining transitional ore prior to
the commencement of San Rafael.
An eight-hole exploration drill program totaling 1,200 meters
has commenced at the Los Manueles project. Los Manueles is adjacent
to San Rafael. Prospecting has traced Zn-Pb-Ag mineralization along
this trend for 2 kilometers. Results from this program are expected
to be released at the end of June.
Method of Analysis
Measures were taken to ensure the integrity and validity of the
sampling in the drill core at the Galena Complex. The core was
photographed, logged and sampled based on lithologic and
mineralogical interpretations. Assays for the Galena Complex were
completed by American Analytical Services (AAS) in Osburn, Idaho.
The AAS laboratory is an ISO-17025 accredited laboratory. A
percentage of samples were sent to an external laboratory; ALS
Global (accredited ISO-17025 Laboratory) in Reno, Nevada for
independent check analysis. Sample preparation includes a 30-gram
pulp sample analyzed primarily by atomic absorption spectroscopy
(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. A conventional atomic absorption
spectroscopy technique was used for the analysis of all 3 elements
at ALS Global with the same industry standard procedures used for
sample analysis as AAS.
Quality Control
The Company’s QA/QC protocol includes internal certified
standard pulps and laboratory certified reference materials,
blanks, duplicates and quarterly check assays in accordance with
best practice industry standards.
About Americas Silver Corporation
Americas Silver is a silver mining company focused on growth in
precious metals from its existing asset base and execution of
targeted accretive acquisitions. It owns and operates the Cosalá
Operations in Sinaloa, Mexico and the Galena Complex in Idaho, USA.
The Company has acquired an option on the San Felipe development
project in Sonora, Mexico.
Daren Dell, Chief Operating Officer 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 americassilvercorp.com.
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, the Company’s
expectations intentions, plans, assumptions and beliefs with
respect to, among other things, the realization of operational and
development plans (including completion of the San Rafael Project),
the Cosalá Operations and Galena Complex as well as the Company’s
financing efforts. Often, but not always, forward‐looking
information can be identified by forward‐looking words such as
“anticipate”, “believe”, “expect”, “goal”, “plan”, “intend”,
“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 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 Cosalá and Galena properties, risks associated with
the mining industry such as economic factors (including future
commodity prices, currency fluctuations and energy prices), ground
conditions and factors other factors limiting mine access, 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 expenditures, reclamation activities, social and
political developments 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. By its nature, forward-looking information involves
numerous assumptions, inherent risks and uncertainties, both
general and specific that 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.
Cautionary Statement to Investors in the United States
Regarding Resources and Reserves
Information concerning the mineral properties of the Company has
been prepared in accordance with the requirements of Canadian
securities laws, which differ in material respects from the
requirements of U.S. securities laws applicable to U.S.
companies subject to the reporting and disclosure requirements of
the U.S. Securities Exchange Commission (the “SEC”). Under SEC
standards, mineralization may not be classified as a “reserve”
unless the determination has been made that the mineralization
could be economically and legally produced or extracted at the time
of the reserve determination, and the SEC does not recognize the
reporting of mineral deposits which do not meet the SEC Industry
Guide definition of “Reserve”. In accordance with Canadian National
Instrument 43-101 - Standards of Disclosure for Mineral Projects
(“NI 43-101”), the terms “mineral reserve”, “proven mineral
reserve”, “probable mineral reserve”, “mineral resource”, “measured
mineral resource”, “indicated mineral resource” and “inferred
mineral resource” used in this AIF are defined in the Canadian
Institute of Mining, Metallurgy and Petroleum (the “CIM”)
Definition Standards for Mineral Resources and Mineral Reserves
adopted by the CIM Council on May 10, 2014. While the terms
“mineral resource”, “measured mineral resource”, “indicated mineral
resource” and “inferred mineral resource” are recognized and
required by the NI 43-101, the SEC does not recognize them.
Shareholders who are U.S. persons are cautioned that, except for
that portion of the mineral resources classified as mineral
reserves, mineral resources do not have demonstrated economic
value. Inferred mineral resources have a high degree of uncertainty
as to their existence as to whether they can be economically or
legally mined. Under Canadian securities laws, estimates of
inferred mineral resources may not form the basis of an economic
analysis. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category.
Therefore, shareholders who are U.S. persons are cautioned not to
assume that all or any part of an inferred mineral resource exists,
that it can be economically or legally mined, or that it will ever
be upgraded to a higher category. Likewise, shareholders who are
U.S. persons are cautioned not to assume that all or any part of
measured or indicated mineral resources will ever be upgraded to
mineral reserves.
1 True widths were determined by measuring the distance
approximately perpendicular to the contacts. No top cut was
applied. All holes included in the table were drilled with BQ
diameter drill rod, except for the 4000-116 Vein drilling which
used AQTK diameter drill rod. Typical recoveries range from 85-100%
for all drilling.
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version on businesswire.com: http://www.businesswire.com/news/home/20170531005517/en/
Americas Silver CorporationDarren Blasutti,
416-848-9503President and CEO
Americas Gold and Silver (TSX:USA)
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