Americas Silver Corporation Declares Commercial Production at the San Rafael Mine
December 21 2017 - 7:00AM
Business Wire
Americas Silver Corporation (TSX:USA) (NYSE American:USAS)
(“Americas Silver” or the “Company”) is pleased to announce that
the San Rafael mine (“San Rafael”), at the Company’s Cosalá
Operations in Sinaloa, Mexico, has successfully completed its
pre-production phase and declared commercial production as of
December 19, 2017.
Mine production at San Rafael is currently averaging
approximately 1,200 tonnes per day and increasing as additional ore
headings continue to be established. The Company’s Los Braceros
mill began processing San Rafael ore on November 19, 2017 and has
steadily increased throughput and recoveries. It has averaged
approximately 1,400 tonnes per day through the pre-production
period with silver, zinc and lead recoveries within 5% of Company
expectations and continues to improve. An accumulated
pre-production stockpile of approximately 23,000 tonnes is
available to supplement mill feed as necessary. The mine is
initially targeting 1,500 tonnes per day of throughput in early Q1
2018 and expects to test the limits of the existing design capacity
of the mill in the second half of 2018.
The San Rafael Mine is expected to drive significant earnings and cash flow at current metals prices for
the Company’s shareholders starting in Q1, 2018 and over the life
of the mine. It is projected to provide a substantial reduction in
the consolidated cash costs and all-in sustaining costs. The mine
was developed on-time and on budget for approximately US$17 million
from internally-generated and existing resources. The Company
expects to provide consolidated guidance for fiscal 2018 to the
market in late January 2018.
“We are pleased at achieving this significant milestone for the
Company,” said Daren Dell, Americas Silver’s Chief Operating
Officer. “This mine will be the cornerstone of our Mexican
operations and provide cash flow for further drilling and
development of our Zone 120 resource, as well as future exploration
on our greater land position in the Cosalá district without equity
dilution. I would like to thank the entire staff of the Cosalá
Operations who successfully brought the San Rafael mine into
production while sustaining operations without significant
interruption at the Company’s Nuestra Senora mine.”
San Felipe Property Update
The Company has agreed to terms with Minera Hochschild Mexico
S.A. de C.V. (“Hochschild”) to amend the timing of payments under
its option agreement on the San Felipe project. The San Felipe
silver‐zinc‐lead project (the “Property”) is located 130 km
northeast of Hermosillo City, Sonora State in Mexico. As announced
in a release dated March 2, 2017 the Company purchased an option
granting it the right to acquire a 100% interest in the Property
for total consideration of US$15 million in cash (plus applicable
VAT), payable in two staged payments. The initial payment of US$7
million was made in March and the remaining US$8 million is to be
made as follows: US$500,000 on each of January 1, 2018 and April 1,
2018 respectively; US$1,000,000 on July 1, 2018; and balance of
US$6,000,000 on or before December 31, 2018. The Company expects to
make any remaining payments with cash on hand from its
operations.
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.
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 the San Rafael Mine), 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20171221005359/en/
Americas Silver CorporationDarren Blasutti,
416‐848‐9503President and CEO
Americas Gold and Silver (TSX:USA)
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