Americas Gold and Silver Corporation (TSX: USA) (NYSE American:
USAS) (“Americas” or the “Company”), a growing North American
precious metals producer, is pleased to provide its Q1-2024
production results and announce Jim Currie as Chief Operating
Officer.
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Consolidated Quarterly Attributable
Silver Production (Graphic: Americas Gold and Silver
Corporation)
- Q1-2024 consolidated attributable silver production of 0.48
million ounces compared with approximately 0.50 million ounces in
Q1-2023. The Company also produced 8.0 million attributable pounds
of zinc and 4.0 million attributable pounds of lead during
Q1-2024.
- Production from the Cosalá Operations was strong as the
operation benefitted from above budgeted silver grades and
recoveries. The Galena Complex production was slightly below budget
as focus during the quarter was re-allocated to lateral development
to access the new mining areas in the Upper Country Lead Zone veins
between 2400 and 2800 levels. This silver-lead area is expected to
be in production in early May and increase production for the next
several years.
- Mr. Jim Currie appointed as the Company’s Chief Operating
Officer, effective May 6, 2024. Mr. Currie is an engineer with over
40 years of senior management, engineering, and operations
experience. Mr. Currie has served as Chief Operating Officer of
Equinox Gold Corp., Pretium Resources Inc. and New Gold Inc.
- The Company is in the documentation phase with a metal trader
to provide concentrate prepayment financing for the entire capital
requirement at its 100%-owned El Cajón and Zone 120 silver-copper
project (“EC120 Project”) at the Cosalá Operations. The Company
expects to close on this financing in Q2-2024 with the goal of
producing higher-grade silver-copper concentrates at the beginning
of 2025.
“The Company had a reasonable start to the year in terms of
silver production and anticipates much stronger quarterly silver
production for the remainder of the year. Silver production at the
Galena Complex is expected to increase immediately with the
completion of the development on the 2400 Level, followed by
lateral development on both the 3700 Level and 4600/4900 Levels,
which will expose new mining areas in the second half of the year.
The increases from the Galena Complex, coupled with the expected
EC120 silver-copper production from the Cosalá Operations at the
beginning of 2025, coincides almost perfectly with the recent and
expected further increase in silver and copper prices.” stated
Americas President and CEO Darren Blasutti. “We are also very
pleased that Jim Currie will join the Company as our new Chief
Operating Officer. His wealth of experience and underground mining
expertise is expected to have an immediate positive impact at the
Galena Complex in terms of both production and profitability.”
“I am thrilled to join Americas Gold and Silver during this
exciting silver growth period for the Company while corresponding
silver, copper and zinc prices are all trending in a positive
direction.” stated Jim Currie, Americas’ Chief Operating Officer.
“The Galena Complex has tremendous potential to become one of the
three largest primary silver producers in the United States over
the next several years with not only substantial resource base on
the balance sheet, but largely untapped exploration potential and
excess milling capacity to grow silver production.”
Consolidated attributable silver production in Q1-2024 was
approximately 482,000 ounces compared with approximately 500,000
ounces in Q1-2023. While Q1-2024 silver production was slightly
down year-over-year and down quarter-over-quarter, the quarterly
silver production has trended in a positive direction over the
course of the last three years and the Company expects this trend
to continue as noted in the chart. This upward trend in production
is expected from increased working faces at the Galena Complex as
well as the exploitation of EC120 at the Cosalá Operations which
contains high-grade silver and copper mineralization.
The Cosalá Operations produced approximately 295,000 ounces of
silver, 2.8 million pounds of lead and 8.0 million pounds of zinc
in Q1-2024, compared with approximately 265,000 ounces of silver,
2.7 million pounds of lead and 7.2 million pounds of zinc in
Q1-2023. Silver and zinc production increased by over 10%
year-over-year while lead production was essentially unchanged.
With the current higher silver and copper price, the Company
decided to expedite the development of its 100%-owned EC120 Project
at the Cosalá Operations. Initial access to the Zone 120 deposit
occurred in Q3-2023 from the San Rafael Upper Zone development. In
addition, the Company continues mining and processing silver-zinc
ore from the San Rafael Main and Upper Zones and is pleased with
the increase in zinc prices so far in the second quarter.
The Company has an agreement in principle and is completing
documentation with an international metal trader to provide
concentrate prepayment financing options for the capital
requirements at the EC120 Project. The Company expects to close on
this financing in Q2-2024 and has the goal of completing the
required development and preparations to be producing higher-grade
silver-copper concentrates from the Project at the beginning of
2025.
Attributable production from the 60% owned Galena Complex was
approximately 187,000 ounces of silver and 1.1 million pounds of
lead in Q1-2024, compared to approximately 235,000 ounces of silver
and 2.8 million pounds of lead in Q1-2023. During the quarter, the
Company focused on horizontal development work in the Upper Country
Lead Zone between the 2400 and 2800 Levels to access additional
working areas. The development work reduced silver and lead
production in the quarter but is expected to positively impact
overall production for the remainder of the year and going forward.
Following completion of the development work on the 2400 Level, the
mining crews and equipment will be available to accelerate
development into a high-grade silver copper stope accessed off of
the 3700 level which will add additional working areas in the
second half of the year.
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a high-growth precious
metals mining company with multiple assets in North America. The
Company owns and operates the Cosalá Operations in Sinaloa, Mexico,
manages the 60%-owned Galena Complex in Idaho, USA, and is
re-evaluating the Relief Canyon mine in Nevada, USA. The Company
also owns the San Felipe development project in Sonora, Mexico. For
further information, please see SEDAR+ or
www.americas-gold.com.
Technical Information and Qualified Persons
The scientific and technical information relating to the
operation of the Company’s material operating mining properties
contained herein has been reviewed and approved by Chris McCann,
P.Eng., VP Technical Services of the Company. The Company’s current
Annual Information Form and the NI 43-101 Technical Reports for its
other material mineral properties, all of which are available on
SEDAR+ at www.sedarplus.ca, and EDGAR at www.sec.gov, contain
further details regarding mineral reserve and mineral resource
estimates, classification and reporting parameters, key assumptions
and associated risks for each of the Company’s material mineral
properties, including a breakdown by category.
All mining terms used herein have the meanings set forth in
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”), as required by Canadian securities
regulatory authorities. These standards differ from the
requirements of the SEC that are applicable to domestic United
States reporting companies. Any mineral reserves and mineral
resources reported by the Company in accordance with NI 43-101 may
not qualify as such under SEC standards. Accordingly, information
contained in this news release may not be comparable to similar
information made public by companies subject to the SEC’s reporting
and disclosure requirements.
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’
expectations, intentions, plans, assumptions and beliefs with
respect to, among other things, estimated and targeted production
rates and results for gold, silver and other metals, the expected
prices of gold, silver and other metals, as well as the related
costs, expenses and capital expenditures; production from the
Galena Complex and Cosalá Operations, including the expected number
of producing stopes and production levels; the expected timing and
completion of required development and the expected operational and
production results therefrom, including the anticipated
improvements to production rates and cash costs per silver ounce
and all-in sustaining costs per silver ounce ; and statements
relating to Americas’ EC120 Project, including expected approvals,
prepayment financing availability and timing and capital
expenditures required to develop such project and reach production
thereat, and expectations regarding its ability to rely in existing
infrastructure, facilities, and equipment; and statements regarding
management changes at the Company. Guidance and outlook references
contained in this press release were prepared based on current mine
plan assumptions with respect to production, development, costs and
capital expenditures, the metal price assumptions disclosed herein,
and assumes no further adverse impacts to the Cosalá Operations
from blockades or work stoppages, and completion of the shaft
repair and shaft rehab work at the Galena Complex on its expected
schedule and budget, the realization of the anticipated benefits
therefrom, and is subject to the risks and uncertainties outlined
below. The ability to maintain cash flow positive production at the
Cosalá Operations, which includes the EC120 Project, through
meeting production targets and at the Galena Complex through
implementing the Galena Recapitalization Plan, including the
completion of the Galena shaft repair and shaft rehab work on its
expected schedule and budget, allowing the Company to generate
sufficient operating cash flows while facing market fluctuations in
commodity prices and inflationary pressures, are significant
judgments in the consolidated financial statements with respect to
the Company’s liquidity. Should the Company experience negative
operating cash flows in future periods, the Company may need to
raise additional funds through the issuance of equity or debt
securities. Often, but not always, forward-looking information can
be identified by forward-looking words such as “anticipate”,
“believe”, “expect”, “goal”, “plan”, “intend”, “potential’,
“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 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 to be materially
different from those expressed or implied by such forward-looking
information. With respect to the business of Americas, these risks
and uncertainties include risks relating to widespread epidemics or
pandemic outbreak, actions that have been and may be taken by
governmental authorities to contain such epidemic or pandemic or to
treat its impact and/or the availability, effectiveness and use of
treatments and vaccines (including the effectiveness of boosters);
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; potential litigation; fluctuating
mineral and commodity prices; the ability to obtain necessary
future financing on acceptable terms or at all; the ability to
operate the Company’s projects; and risks associated with the
mining industry such as economic factors (including future
commodity prices, currency fluctuations and energy prices), ground
conditions, illegal blockades and other factors limiting mine
access or regular operations without interruption, 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 and construction expenditures, reclamation activities,
labor relations or disruptions, social and political developments,
risks associated with generally elevated inflation and inflationary
pressures, risks related to changing global economic conditions,
and market volatility, risks relating to geopolitical instability,
political unrest, war, and other global conflicts may result in
adverse effects on macroeconomic conditions including volatility in
financial markets, adverse changes in trade policies, inflation,
supply chain disruptions 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’ filings with the Canadian
Securities Administrators on SEDAR+ and with the SEC. Americas 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 does not give any
assurance (1) that Americas will achieve its expectations, or (2)
concerning the result or timing thereof. All subsequent written and
oral forward‐looking information concerning Americas are expressly
qualified in their entirety by the cautionary statements above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501811319/en/
Stefan Axell VP, Corporate Development & Communications
Americas Gold and Silver Corporation 416-874-1708
Darren Blasutti President and CEO Americas Gold and Silver
Corporation 416‐848‐9503
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