Americas Silver Corporation (TSX: USA) (NYSE “American”: USAS)
(“Americas Silver” or the “Company”) is pleased to provide an
update on exploration activities at its two operating properties,
the 100%-owned Cosalá Operations in Sinaloa, Mexico and the
100%-owned Galena Complex in Wallace, Idaho and a brief update on
its new San Rafael Mine. The Cosalá Operations includes the Zone
120 deposit, adjacent to the San Rafael Mine.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20180605006641/en/
Figure 1: Location of Latest Reported
Holes (Graphic: Business Wire)
Exploration Highlights
Cosalá Operations - Zone 120
- Hole SR-435 with multiple intervals
including:
- 20.131 meters grading 249g/t Ag,
0.38g/t Au, and 0.76% Cu (362g/t AgEq2)
- 29.94 meters grading 203g/t Ag, 0.31g/t
Au, and 0.61% Cu (295g/t AgEq)
- 10.65 meters grading 123g/t Ag, 0.16g/t
Au, and 0.27% Cu (166g/t AgEq)
- Hole SR-438 with 6.20 meters grading
620g/t Ag, 0.75g/t Au, and 1.32% Cu (825g/t AgEq) including
1.05 meters at 1,051g/t Ag, 1.42g/t Au and 2.33% Cu (1,419g/t
AgEq)
- Hole SR-439 with 5.15 meters grading
166g/t Ag, 0.15g/t Au, and 0.06% Cu (184g/t AgEq)
Galena Complex
- 3200 Level – Strike extension of Upper
Country Lead Zone
- Hole 32-055 with 6.65 meters grading
160g/t Ag and 8.20% Pb (488g/t AgEq)
- Hole 32-059 with 3.17 meters grading
387g/t Ag and 11.41% Pb (843g/t AgEq)
- 4300 Level – Vertical extension of the
366 Foot Wall (FW) structure
- Hole 43-188 with 24.09 meters grading
107g/t Ag and 5.25% Pb (317g/t AgEq) including 6.83 meters
at 158g/t Ag and 8.11% Pb (482g/t AgEq)
- Hole 43-189 with 4.57 meters grading
100g/t Ag and 7.26% Pb (391g/t AgEq)
“These excellent drill results at both of our operating
complexes continue to expand our silver resources allowing for
future low capital and operating cost production,” said Darren
Blasutti, President and CEO of Americas Silver Corporation, “With
the San Rafael mill processing 1,650 tonnes per operating day with
further ramp up expected, our cash costs and all-in sustaining
costs will continue to reduce over the remainder of the year.”
San Rafael Update
The mine and mill continued to make steady progress through the
end of May, 2018. Ore production is exceeding mill feed
requirements with development into the Main and Upper Zones
remaining on plan. The mill is treating 1,650 tonnes per operating
day and building consistency at this level; throughput is targeted
to reach 1,700 tonnes per operating day by the end of the second
quarter.
Cosalá Operations - Zone 120 Exploration Results
Drill results are now available for holes SR-433 through SR-441.
Significant intercepts in excess of 100g/t AgEq and with widths
greater than 4 meters are shown in Table 1. A complete summary of
the drill results can be found on the Company’s website at
www.americassilvercorp.com.
Table 1: Zone 120 Drill Results
Hole From To True
Width Ag Au Cu
AgEq (m) (m) (m) (g/t)
(g/t) (%) (g/t) SR-435 261.90 273.30 10.65 123
0.16 0.27 166 Including 263.20 264.65 1.35 334 0.24 0.75 437 SR-435
295.70 317.25 20.13 249 0.38 0.76 362 Including 303.95 305.10 1.07
491 0.75 1.46 712 Including 311.00 312.45 1.35 727 0.91 2.17 1,041
SR-435 295.70 327.75 29.94 203 0.31 0.61 295 SR-438 319.05 325.55
6.20 620 0.75 1.32 825 Including 321.05 323.70 1.05 1,051 1.42 2.33
1,419 SR-439 15.90 21.40 5.15 166 0.15 0.06 184
These latest results conclude the planned 12,000 meter drill
program at Zone 120. Analysis of data is underway as part of a
mid-year resource estimate. The Company has begun evaluating
development alternatives for the project with the goal of
prioritizing preferred options by the end of the third quarter.
The Zone 120 deposit is characterized by steeply dipping
parallel lenses of Ag-Cu-Au skarn mineralization developed in
volcanically derived calcareous sediments adjacent to intermediate
intrusive dikes and sills. Skarn mineralization is characterized by
disseminated chalcopyrite and tetrahedrite. The mineralization is
similar to that at Americas Silver’s nearby El Cajón mine which has
been mined and processed in the past. Mineralization at Zone 120
has been found over an area greater than 500 meters in length, 300
meters in width and down to a depth of 550 meters. Individual
lenses have widths up to 60 meters.
Galena Complex Exploration Results
Exploration drilling at Galena is continuing to successfully
expand areas of mineralization near existing underground mine
infrastructure. The most recent results have benefited the Upper
Country Lead Zone in the 3200 level and identified a possible
up-dip extension of the 366 Foot Wall which was mentioned in the
press release of April 5, 2018. Significant intercepts for this
drilling are shown in Table 2.
Table 2: Galena Complex Drill Results
Hole Area From
(m)
To
(m)
True Width
(m)
Ag
(g/t)
Pb
(%)
AgEq
(g/t)
32-055 B-Branch 30.18 36.83 6.65 160 8.20 488 32-056 B-Branch 37.20
39.63 2.44 145 7.66 452 32-059 2A Vn 2.44 6.10 3.17 387 11.41 843
32-060 2A Vn 4.27 6.71 2.10 169 5.13 374 32-071 2A Vn 24.39 25.52
1.13 214 13.20 742 32-071 B-Branch 35.06 37.50 2.44 67 3.49 207
43-188 Poss. 366 FW 33.54 57.62 24.09 107 5.25 317 Including
46.22 53.05 6.83 158 8.11 482 43-189 Poss. 366 FW 53.35 57.93 4.57
100 7.26 391 43-189 Poss. 366 FW 67.99 70.67 2.68 171 11.77 642
Development of the Upper Country Lead Zone on the 3200 Level is
progressing well. Exploration drifting over the past twelve months
has been supported by ongoing diamond drilling to better define and
validate the geological model. A total of 391 meters of vein
development has identified silver-lead mineralization with an
average mined width of 2.6 meters at typical mined grades of 180g/t
Ag and 6.2% Pb. Data from the recent diamond drill holes has
improved delineation of the eastern extent of the resource and
identified new exploration targets along the B-Branch fault zone.
Incorporated into the geological model, these drill results have
the potential to add a further 362 meters of strike length to the
3200 level exploration project while providing vital structural
information to the benefit of production currently sourced from the
3400 level.
The 366 FW zone was first identified in 2017 from drilling on
the 4900 Level. Recent drilling from the 4300 Level has identified
the possible up-dip extension of this mineralized structure which,
if confirmed, could nearly double the size of the zone to
approximately 200 meters in height and 180 meters in length and 3.8
meters in width. As presently defined the structure remains open in
both vertical directions. Given the zone’s proximity to existing
underground infrastructure on the 4900 Level, development has
reached the area and initial production results have been
positive.
Technical Information
Drill core samples from the Cosalá operations are prepared at
the Company’s secure facility in Cosalá, Sinaloa. Assaying was done
by ALS Chemex Labs in Hermosillo, Sonora.
Drill core samples from the Galena Complex are prepared and
assayed at American Analytical Services Inc. in Osburn, Idaho. The
Company has a QA/QC program supervised by a Qualified Person.
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.
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 holds 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 exploration,
operational and development plans, 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 regarding mineral
resources:
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.
1 True widths reported.2 Silver equivalent grade (AgEq)
calculated using metal prices of $18.00/oz Ag, $1,300/oz Au,
$1.05/lb Pb and $3.00/lb Cu
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version on businesswire.com: https://www.businesswire.com/news/home/20180605006641/en/
Americas Silver CorporationDarren BlasuttiPresident and
CEO416-848-9503
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