Americas Gold and Silver Corporation ("Americas" or the "Company"), a growing North American precious metals producer, is pleased to provide an exploration update for its Galena Complex Joint Venture.
Highlights
- The Galena JV Management Committee met in June 2022 to review Phase II exploration drilling, future exploration targets, the Galena Hoist project and future production plans for the Galena Complex (60% Americas / 40% Eric Sprott).
- Phase II exploration has completed approximately 19,000 meters of drilling with a focus on continued deeper exploration drilling and upgrading inferred mineral resources.
- The updated mineral resource estimate is expected to increase when completed in late Q3-2022. The Galena Complex continues to add resources at a discovery cost of less than 10 cents per silver ounce. Key results from the in-fill drill program includes:
- Hole 37-329: 7,501 g/t silver and 2.6% copper (7,781 g/t silver equivalent [1]) over 1.7 m [2]
- including: 21,500 g/t silver and 7.6% copper (22,300 g/t silver equivalent) over 0.6 m
- Hole 49-573: 1,517 g/t silver and 0.7% copper (1,591 g/t silver equivalent) over 1.3 m
- including: 7,130 g/t silver and 3.2% copper (7,470 g/t silver equivalent) over 0.2 m
- Exploration drilling has defined the Silver Vein extension down over 400 feet from the 5500 Level and the 185 Vein down over 800 feet from the 5500 Level with new mineralization encountered as deep as 1,000 feet below the 5500 Level. Key results include:
- Hole 55-216: 4,010 g/t silver and 3.9% copper (4,420 g/t silver equivalent) over 1.2 m
- Hole 55-217: 1,460 g/t silver and 1.3% copper (1,594 g/t silver equivalent) over 1.7 m
- including: 9,600 g/t silver and 8.8% copper (10,500 g/t silver equivalent) over 0.2 m
- and: 4,120 g/t silver and 3.1% copper (4,440 g/t silver equivalent) over 0.3 m
- and: 1,745 g/t Ag, 7.8% Pb and 0.8% Cu (2,111 g/t silver equivalent) over 0.8 m
- Further, the 5500 Level East development has encountered the 291 Vein, which was previously mined to the 5200 Level with an average width of 2 meters at an average grade of approximately 1,200 g/t silver.
- Hole 55-223: 2,402 g/t silver and 2.2% copper (2,620 g/t silver equivalent) over 0.6 m
- including: 3,150 g/t silver and 2.9% copper (3,440 g/t silver equivalent) over 0.4 m
- In addition to continuing to target known vein extensions, Galena Complex management have outlined five prospective brownfield target areas based on large gap areas containing no drill data.
- With the significant number of drill targets, the Galena JV Management Committee approved the purchase of an additional underground drill and hiring of personnel to accelerate the exploration program.
- As a result of the current and proposed geologic targets, the Galena JV Management Committee reviewed a 5-year exploration strategy with the objective of doubling the current Galena Complex global silver resource over the next 5 years.
- The Galena Hoist project remains on target to be installed and commissioned in Q4-2022 with the total Galena Complex capital budget for the year expected to remain within 5% of the initial forecast.
- Silver production for 2023 and beyond is forecast to increase to over 2.5 million ounces per year with a 5-year target to double production by the end of 2027.
"Steady progress is being made at the Galena Complex to transform it into one of the largest primary silver producers in the United States," stated Americas Gold and Silver President & CEO Darren Blasutti. "The Phase II drilling continues to increase silver mineral resources, and when coupled with the progress being made on the Galena Hoist installation, is expected to bring silver production to over 2.5 million ounces in 2023. Further, new exploration targets within the Galena Complex have been identified from the structural geology review to target a doubling of the current global silver mineral resource over the next 5 years, allowing the Galena Complex to get back to its historical peak production capacity in 2027."
Galena Complex Update
The Galena JV Management Committee met in June 2022 to review Phase 2 exploration drilling, future exploration targets, the Galena Hoist project and future production plans for the Galena Complex (60% Americas / 40% Eric Sprott). The Phase II drill program at the Galena Complex began in late August 2021.
The initial focus was to test the recently discovered Silver Vein extension below the 5500 Level, the deepest level of the mine. To date, the Silver Vein extension has been delineated to over 400 ft below the 5500 Level. As part of the 5500 Level drilling of the Silver Vein extension, the Company successfully intersected the high grade 185 Vein approximately 800 ft below the 5500 Level. Key intercepts from the Silver Vein extension and the 185 Vein include:
- Hole 55-196: 780 g/t silver and 1.1% copper (890 g/t silver equivalent) over 1.5 m
- Hole 55-199: 1,405 g/t silver and 1.5% copper (1,561 g/t silver equivalent) over 1.8 m
- Hole 55-200: 1,593 g/t Ag, 0.2% Pb and 0.9% Cu (1,690 g/t silver equivalent) over 0.7 m
including: 3,220 g/t Ag, 0.4% Pb and 1.7% Cu (3,410 g/t silver equivalent) over 0.2 m
- Hole 55-216: 4,010 g/t silver and 3.9% copper (4,420 g/t silver equivalent) over 1.2 m
- Hole 55-217: 1,460 g/t silver and 1.3% copper (1,594 g/t silver equivalent) over 1.7 m
including: 9,600 g/t silver and 8.8% copper (10,500 g/t silver equivalent) over 0.2 m
and 4,120 g/t silver and 3.1% copper (4,440 g/t silver equivalent) over 0.3 m
and: 1,745 g/t Ag, 7.8% Pb and 0.8% Cu (2,111 g/t silver equivalent) over 0.8 m
A full table of drill results can be found at: https://americas-gold.com/site/assets/files/4297/dr20220623.pdf
The Company continues to advance development further east along the 5500 Level to allow for continued exploration of the 360 Complex and testing of the Caladay Zone. Development has crossed the 291 Vein which was a steady producing area when last mined on the 5200 Level. The Company now plans immediate exploration and development of the 291 Vein given the strong historical mining of the vein on the 5200 Level with average mining widths of over 2 meters at an average grade of approximately 1,200 g/t silver.
- Hole 55-223: 2,402 g/t silver and 2.2% copper (2,620 g/t silver equivalent) over 0.6 m
including: 3,150 g/t silver and 2.9% copper (3,440 g/t silver equivalent) over 0.4 m
In addition to deep exploration drilling, the Company has focused on in-fill drilling to upgrade inferred mineral resources adjacent to current production areas to the measured and indicated categories. Key results from the in-fill drilling includes:
- Hole 37-328: 8,230 g/t Ag, 0.2% Pb and 3.9% Cu (8,640 g/t silver equivalent) over 0.2 m
and: 1,650 g/t Ag, 1.0% Pb and 0.6% Cu (1,760 g/t silver equivalent) over 1.0 m
- Hole 37-329: 7,501 g/t silver and 2.6% copper (7,781 g/t silver equivalent) over 1.7 m
including: 21,500 g/t silver and 7.6% copper (22,300 g/t silver equivalent) over 0.6 m
- Hole 49-573: 1,517 g/t silver and 0.7% copper (1,591 g/t silver equivalent) over 1.3 m
including: 7,130 g/t silver and 3.2% copper (7,470 g/t silver equivalent) over 0.2 m
and: 561 g/t silver and 17.1% lead (1,177 g/t silver equivalent) over 1.5 m
- Hole 49-574: 1,378 g/t silver and 0.7% copper (1,451 g/t silver equivalent) over 1.1 m
including: 9,090 g/t silver and 4.3% copper (9,540 g/t silver equivalent) over 0.1 m
and: 1,584 g/t silver and 0.8% copper (1,665 g/t silver equivalent) over 0.5 m
including: 6,380 g/t silver and 3.2% copper (6,700 g/t silver equivalent) over 0.1 m
With the most recent update to its mineral reserve and mineral resource statement as at June 30, 2021, the Company successfully increased proven and probable silver reserves at the Galena Complex by 38%, increased the measured and indicated silver resources by 72% and the inferred mineral silver resources by 36%. The Company is confident that the mineral reserve and mineral resource will continue to increase with its next mineral reserve and mineral resource update as at June 30, 2022.
The Galena Complex property is composed of over 12,000 acres in the Silver Valley, Idaho. The property represents the largest property position in the Silver Valley. The property remains underexplored despite the long history of production on the property, with over 235 million ounces of silver produced. Galena Complex management has outlined promising targets for continued mineral resource growth including five prospective brownfield target areas based on highly favourable structural geology located in large gap areas with no drill data. The key areas that Galena Complex management are targeting include:
- Kilbuck Trend: This was the first surface discovery on the property back in the late 1800's with a number of fan holes planned for later this year. This area is largely untested and based on success, would allow for mining areas to be accessed from surface ramps.
- Vulcan Gap: A discovery hole is planned to test for mineralization in the gap between the Vulcan workings and known trends. This area is located between the Coeur and #3 shafts and above the historical workings which started on the 2400 Level. The area is largely untested with prospective host rocks and structures.
- Caladay - 360 Complex: Drilling from the 4900 Level will test the plunge line of the recently defined blue rock horizon and the Silver Standard fault, which appear to control the mineralization of the farthest east ore bearing trend.
- Upper Coeur: Testing of the up-dip extensions of the 400 Vein, 483 Vein and their intersections which will serve as a precursor to surface drilling.
- Deep Caladay and 360 Complex: Continued development of the 5500 Level further east to establish a new drill station to enable for deep exploration and modeling.
As a result of the current and proposed exploration targets, the Galena JV Management Committee reviewed a 5-year exploration strategy with the objective of doubling the Galena Complex silver resource over the next 5 years. Given the significant number of drill targets, the Galena JV Management Committee approved the purchase of an additional underground drill and hiring of personnel to accelerate the exploration program.
The Company aims to commission the Galena Hoist project in Q4-2022 which will increase hoisting capacity at the operation in the near term with the total Galena capital budget for the year expected to remain within 5% of the initial forecast. Cash costs [3] per silver ounce and all-in sustaining costs [3] per silver ounce at the Galena Complex are anticipated to decrease on a per silver ounce basis as most of the operating costs are fixed assuming expected higher silver and lead production beginning in 2022.
Silver production for 2023 and beyond is forecast to increase to over 2.5 million ounces per year with a 5-year target to double production by the end of 2027.
Source: https://www.americas-gold.com/