Americas Silver Corporation (TSX:USA) (NYSE “MKT”:USAS)
(“Americas Silver” or the “Company”) is pleased to provide updated
mineral reserve and resource estimates for its two 100% assets, the
Galena Complex in Idaho, USA and the Cosalá Operations in Sinaloa,
Mexico, including the San Rafael, El Cajon, and Nuestra Senora
mines, and the Zone 120 deposit.
This updated Mineral Reserve and Resource estimate reflects the
drilling programs completed between January 1, 2016 and June 30,
2017 as well as production data during that period with an
effective date of June 30, 2017 for the estimates. The estimate
does not include drill results from holes SR399 to SR401 completed
in the third quarter at the Company’s Zone 120 deposit released
previously, nor the associated resources attributable to the
Company’s option on the San Felipe property.
Highlights include:
- Silver inventory contains 28 million
ounces of proven and probable reserves, 58 million ounces of
measured and indicated resources and 37 million ounces of inferred
resources, a decrease of 9%, and increases of 16% and 37%,
respectively.
- San Rafael estimated proven and
probable reserves increased by 512,000 tonnes (16%), 650,000 ounces
of silver (6%), 12 million pounds of lead (10%), and 34 million
pounds of zinc (11%).
- Zone 120 measured and indicated
resource increased by 70% to 12.6 million ounces of contained
silver while the inferred resource increased to 9.6 million silver
ounces with silver grades increasing by approximately 46% and 98%
respectively. Drilling is expected to resume early in the fourth
quarter to follow-up on the recent exploration success outlined in
the August 24, 2017 press release.
- Galena silver-lead ore proven and
probable reserves were increased by 1.3 million ounces of silver,
net of 18 months of production depletion.
Proven and Probable Mineral Reserves †
June 30, 2017
Grade Contained Metal Tonnes
Silver Copper Lead Zinc Silver
Copper Lead Zinc 000s g/t % % % koz Mlbs Mlbs Mlbs
Total Cosalá P&P 4,004 100 0.02 1.64 3.94 12,894 1.5 144.8
347.5 Total Galena P&P 1,354 354 0.13 5.93 -- 15,396 3.8 177.1
-- Total P&P 5,358 164 0.04 2.73
2.94 28,290 5.2 321.9 347.5
Measured and Indicated Mineral
Resources (Exclusive of Mineral Reserves) ‡ June 30, 2017
Grade Contained Metal Tonnes Silver Copper
Lead Zinc Silver Copper Lead Zinc 000s g/t % % % koz Mlbs Mlbs Mlbs
Total Cosalá M&I 8,003 128 0.24 0.54 1.20 33,030 43.1 95.9
211.6 Total Galena M&I 1,909 405 0.24 5.64 -- 24,854 10.1 237.3
-- Total M&I 9,912 182 0.24 1.52
0.97 57,884 53.1 333.2 211.6
Inferred Mineral Resources ‡ June 30,
2017
Grade Contained Metal Tonnes Silver Copper
Lead Zinc Silver Copper Lead Zinc 000s g/t % % % koz Mlbs Mlbs Mlbs
Total Cosalá Inferred 4,127 147 0.33 0.65 0.97 19,507 30.3 59.4
88.3 Total Galena Inferred 1,667 321 0.14 7.49 -- 17,224 5.1 275.3
-- Total Inferred 5,794 197 0.28 2.62
0.69 36,731 35.4 334.7 88.3
“We’re pleased to have replaced and grown our metal inventory
despite minimal exploration drilling until early 2017 due to the
difficult state of the precious metal industry since 2012,” said
Darren Blasutti, President and CEO. “The building of the San Rafael
mine on time and budget coupled with the early drilling success of
the adjacent Zone 120 deposit demonstrates the quality of our
properties. It highlights the achievement of our disciplined
capital allocation approach, prioritizing the most accretive
investments to position the Company for future silver production
growth without share dilution.”
Compared to the last update at December 31, 2015, silver
contained in the consolidated proven and probable reserves dropped
9%, or 3.0 million ounces, to 28 million ounces due to 18 months of
production, the impending closure of Cosalá’s Nuestra Señora mine
in Q4, 2017, and the reclassification of some silver-copper
material at Galena. Galena has been producing silver-lead ore since
January 2016 and the reserve associated with this material
increased by 18% or approximately 1.3 million ounces despite
production depletion.
Silver contained in the consolidated measured and indicated
resources increased by 16% to 58 million ounces. The Galena
resources were roughly consistent with the 2015 report while Cosalá
Operations resources were boosted by gains at Zone 120 (increased
5.2 million ounces) and the reinstatement of El Cajón (increased
5.7 million ounces) as a result of the resolution of a property
boundary uncertainty in Q2, 2017. Total silver contained in the
inferred category increased by 37% to 37 million ounces primarily
due to the exploration success at Zone 120 in the first half of
2017.
The increase in the San Rafael reserves is expected to extend
the mine life at San Rafael beyond that identified in the San
Rafael Technical Report released in March 2016. The Company expects
the mine life to continue to grow as current spot prices for
Company’s silver and the by-product metals are sustained over time
and further resources are economically converted to reserves.
Recent drilling in the Company’s Zone 120 deposit continues to
show the prospectivity of the Company’s land holding at the Cosalá
Operations. The Company expects to drill additional step-out and
in-fill holes in Q4, 2017 and into 2018 to potentially increase the
size and understanding of the deposit after which it may assess the
economic viability of the deposit as a standalone mine development
scenario.
Additional detail can be found on the Company’s website
americassilvercorp.com.
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 Mine 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 exploration,
operational and development plans (including the successful
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 Note to U.S. Investors:
The terms “mineral resource”, “measured mineral resource”,
“indicated mineral resource”, “inferred mineral resource” used in
the press release are Canadian mining terms used in accordance with
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects under the guidelines set out in the Canadian Institute of
Mining, Metallurgy and Petroleum Standards. Mineral resources which
are not mineral reserves do not have demonstrated economic
viability.
While the terms “mineral resource”, “measured mineral resource”,
“indicated mineral resource”, and “inferred mineral resource” are
recognized and required by Canadian regulations, they are not
defined terms under standards in the United States and normally are
not permitted to be used in reports and registration statements
filed with the Securities & Exchange Commission (“SEC”). As
such, information contained in the Company's disclosure concerning
descriptions of mineralization and resources under Canadian
standards may not be comparable to similar information made public
by U.S companies in SEC filings. With respect to “inferred mineral
resource” there is a great amount of uncertainty as to their
existence and a great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
“inferred mineral resource” will ever be upgraded to a higher
category. Investors are cautioned not to assume that any part or
all of mineral deposits in these categories will ever be converted
into reserves.
† CIM Definition and Standards were followed for Mineral Reserve
Estimates. Mineral Reserves are estimated at a NSR cut-off value of
US$40/tonne at Nuestra Señora, US$54/tonne at San Rafael and
US$190/tonne at Galena. The NSR cut-off is calculated using recent
operating results for recoveries, off-site concentrate costs, and
on-site operating costs. Mineral Reserves are estimated using metal
prices of $16.00 per ounce of silver, $2.50 per pound of copper,
$0.90 per pound of lead and $0.90 per pound of zinc. Numbers may
not add or multiply accurately due to rounding.
‡ CIM Definition and Standards were followed for Mineral
Resource Estimates. Mineral Resources are estimated at a NSR
cut-off value of US$34/tonne at San Rafael, US$40/tonne at Zone
120, US$30/tonne at El Cajón and US$190/tonne at Galena. Mineral
Resources at Nuestra Señora are estimated at a 90g/tonne silver
equivalent cut-off grade. NSR and silver equivalent cut-offs were
calculated using recent or expected operating results for
recoveries, off-site concentrate costs, and on-site operating
costs. Mineral Resources are estimated using $18.00/oz Ag, $3.00/lb
Cu, $1.05/lb Pb and $1.05/lb Zn. Mineral Resources are reported
exclusive of Mineral Reserves and as such the Mineral Resources do
not have demonstrated economic viability. Numbers may not add or
multiply accurately due to rounding.
The Mineral Resource estimate for the Cosalá Operations is based
on block models prepared by independent mineral resource
consultants. The Nuestra Señora Mineral Reserve and Resource
estimate was prepared by Company personnel under the supervision of
James Stonehouse, a Qualified Person for the purpose of NI 43-101.
The San Rafael, Zone 120 and El Cajón Mineral Resource estimates
were prepared by Paul Tietz, C.P.G. who is an independent
consultant and Qualified Person for the purpose of NI 43-101. The
San Rafael Mineral Reserve estimate was prepared by company
personnel under the supervision of Shawn Wilson, a Qualified Person
for the purpose of NI 43-101.
The Mineral Resource estimate for the Galena Complex was
prepared using a combination of block modelling and the
accumulation method. The Mineral Resource estimate was prepared by
Company personnel under the supervision of Aaron Gross, C.P.G., a
Qualified Person for the purpose of NI 43-101. The Mineral Reserve
estimate was prepared by Company personnel under the supervision of
Shawn Wilson, a Qualified Person for the purpose of NI 43-101.
Varying cut-off grades have been used depending on the mine,
methods of extraction and type of ore contained in the reserves.
Mineral resource metal grades and material densities have been
estimated using industry-standard methods appropriate for each
mineral project with support of various commercially available
mining software packages. The Company’s normal data verification
procedures have been employed in connection with the calculations.
Verification procedures include industry standard quality control
practices. Sampling, analytical and test data underlying the stated
mineral resources and reserves have been verified by employees of
the Company under the supervision of Qualified Persons, for
purposes of 43-101 and/or independent Qualified Persons. Additional
details regarding Mineral Reserve and Mineral Resource estimation,
classification, reporting parameters, key assumptions and
associated risks for each of the Company’s mineral properties are
provided in the respective NI 43-101 Technical Reports which are
available at www.sedar.com
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version on businesswire.com: http://www.businesswire.com/news/home/20170918005323/en/
Americas Silver CorporationDarren Blasutti,
416-848-9503President and CEO
Americas Gold and Silver (AMEX:USAS)
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