Americas Silver Corporation (TSX: USA) (NYSE American: USAS)
(“Americas Silver” or the “Company”) is pleased to announce the
results of a Preliminary Feasibility Study (“PFS”, “Study”) and
initial mineral reserve estimate prepared internally by Company
personnel for a combined operation at its 100% owned El Cajón and
Zone 120 silver-copper deposits (“EC120”, “Project”) located near
Cosalá, Sinaloa, Mexico. The base case economics for the EC120
Project are presented at long term consensus prices of $17.50 per
ounce silver and $3.00 per pound copper, with all amounts expressed
in US dollars.
EC120 Project PFS Highlights (all
values in USD unless otherwise noted):
- Estimated probable mineral reserve of
2.9 million tonnes with a grade of 157g/t silver and 0.42% copper
containing 14.5 million ounces of silver and 26.5 million pounds of
copper
- 5-year mine life with average annual
metal production of 2.5 million ounces of silver and 4.6 million
pounds of copper (3.3 million silver equivalent ounces1)
- The Project has a pre-tax net present
value with a 5% discount rate (“NPV5%”) of approximately $43
million and internal rate of return (“IRR”) of 61% or after-tax
NPV5% of $33 million and IRR of 47%
- Initial capital expenditure of
approximately $17 million with life of mine sustaining capital of
approximately $15 million2
- Life of mine cash cost3of approximately
$9.60 per silver ounce and average all-in sustaining cost2 (“AISC”)
of approximately $10.80 per silver ounce
“The EC120 Project is a significant addition to our precious
metals growth pipeline,” said Darren Blasutti, President & CEO
of Americas Silver. “Having a 2.5 million ounce per year silver
project ready for immediate development fits into our strategy of
preparing for the inevitable positive correction in the silver
price. It provides a solid five-year production base as we continue
to further explore the El Cajón and Zone 120 deposits and our other
silver-rich exploration target areas in Cosalá later in 2019.”
The Study considers two underground operations with concurrent
production from the adjacent El Cajón and Zone 120 deposits.
Following an 18-month pre-production period, the combined operation
will target a production rate of 1,800 tonnes per day. Overhand
mechanized cut-and-fill will be the mining method utilized at both
mines. The Project will take advantage of existing infrastructure
and equipment currently in use at the producing San Rafael mine and
existing development at the El Cajón deposit.
The Study assumes that processing will take place at the
existing Los Braceros facility to produce a silver-bearing copper
concentrate. The Los Braceros facility currently processes San
Rafael ore to produce silver-bearing zinc and lead concentrates.
Only minor modifications to the plant would be required to process
ore from EC120. The existing tailings storage facility has capacity
to store all planned production with scheduled dam lifts.
Based on the Study, the Project is expected to produce over 12
million ounces of silver and 23.0 million pounds of copper over a
mine life of approximately 5 years. The life of mine all-in
sustaining costs of the Project are expected to be below $11.00 per
ounce of silver produced. The Company has not yet made a production
decision with respect to the Project, however permits are in place
to allow development to begin at any time.
The Probable Mineral Reserve estimate for EC120 as at April 3,
2019 is presented below.
EC120 Probable Mineral Reserves Ore
Grade Contained Metal Tonnes Silver
Copper Silver Copper 000s g/t % koz Mlbs Zone 120 Probable
2,047 161 0.40 10,610 18.1 El Cajón Probable 831 147 0.46 3,939 8.4
EC120 Probable 2,877 157 0.42
14,549 26.5
Mineral Reserve Notes:
1. CIM (2014) Definition Standards were followed for Mineral
Reserves.
2. Mineral Reserves are estimated at a net smelter return
cut-off value of US$40/tonne at El Cajon and Zone 120.
3. Mineral Reserves are estimated using metal prices of
US$16.00/oz Ag and $2.50/lb Cu.
4. A minimum mining width of 4 meters and a 15% dilution factor,
at zero grade, was used for estimating Reserves at El Cajon and
Zone 120. Mining recoveries vary between 80% to 95% depending on
the width of the ore zone to reflect the proposed overhand cut and
fill mining method.
5. The EC120 Mineral Reserve estimate was prepared internally by
Shawn Wilson, P.Eng., who is a Qualified Person for the purpose of
National Instrument 43-101 (“NI 43-101”).
6. Numbers may not add or multiply accurately due to
rounding.
7. Americas Silver is not aware of any environmental,
permitting, legal, title, taxation, socio-economic, marketing,
political, or other relevant issues that would materially affect
this mineral reserve estimate.
Readers are encouraged to read the related technical report in
its entirety once filed on the Company’s SEDAR profile at
www.sedar.com and on the Company’s website at
www.americassilvercorp.com to fully understand the information in
this news release.
The technical information in this news release has been prepared
and approved by Shawn Wilson, P.Eng., Vice President Technical
Services for Americas Silver and a Qualified Person for the purpose
of NI 43-101.
About Americas Silver
Corporation
Americas Silver is a precious metal mining company focused on
growth 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. 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, Americas Silver’s and
Pershing Gold’s expectations, intentions, plans, assumptions and
beliefs with respect to, among other things, Americas Silver’s
potential advancement of the EC120 Project. 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 Americas Silver 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 Americas Silver
to be materially different from those expressed or implied by such
forward-looking information. With respect to the business of
Americas Silver, these risks and uncertainties include
interpretations or reinterpretations of geologic information;
unfavorable exploration results; inability to obtain permits
required for future exploration, development or production; general
economic conditions and conditions affecting the industries in
which the Company operates; the uncertainty of regulatory
requirements and approvals; fluctuating mineral and commodity
prices; the ability to obtain necessary future financing on
acceptable terms or at all; and risks associated with the mining
industry such as economic factors (including future commodity
prices, currency fluctuations and energy prices), ground conditions
and 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, labor relations,
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. Additional information regarding the factors that may
cause actual results to differ materially from this forward‐looking
information is available in Americas Silver’s filings with the
Canadian Securities Administrators on SEDAR and with the SEC.
Americas Silver does not undertake any 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.
Americas Silver does not give any assurance (1) that Americas
Silver will achieve its expectations, or (2) concerning the result
or timing thereof. All subsequent written and oral forward‐looking
information concerning Americas Silver, the EC120 Project, or any
person acting on the behalf of Americas Silver are expressly
qualified in their entirety by the cautionary statements above.
No Offer or Solicitation
This press release is for informational purposes only and does
not constitute an offer to sell or the solicitation of an offer to
buy any securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offer or sale of
securities shall be made except pursuant to registration under the
United States Securities Act of 1933, as amended (the “U.S.
Securities Act”), and any applicable state securities laws or in
compliance with an exemption therefrom.
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 the mineral deposits in these categories will ever be
converted into reserves.
1 Silver equivalent ounces are calculated using metal prices of
$17.50/oz silver and $3.00/lb copper2 Initial capex excludes
working capital and pre-production operating costs net of revenue3
Cash cost per ounce and all-in sustaining cost per ounce are
non-IFRS performance measures with no standardized definition. The
Company reconciles such measures to IFRS measures as shown in the
Company’s 2018 Management’s Discussion and Analysis under the
heading “Non-IFRS measures: Cash Costs per Ounce and All-in
Sustaining Cost per Ounce.” For further information on the PFS
non-IFRS measures, please see the pre-feasibility study once it is
filed on www.SEDAR.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190403005807/en/
Darren BlasuttiPresident and CEO416‐848‐9503
Andrea TotinoIR Manager416-866-1866
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