Americas Gold And Silver Announces Significant Increase To Galena Complex

TORONTO, Sept. 14, 2020 /PRNewswire/ — Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) (“Americas” or the “Company”), a growing North American precious metals producer, provides an update to its Mineral Reserve and Resource statement as at June 30, 2020.

On a consolidated and attributable basis, estimated contained metal in the proven and probable mineral reserve categories totalled 610,000 ounces of gold, 30.6 million ounces of silver, 134 million pounds of zinc, 129 million pounds of lead and 28 million pounds of copper.  Please refer to the Company’s website for a full breakdown of its Mineral Reserve and Mineral Resource statement by asset.

2020 Mineral Reserve and Mineral Resource Update Highlights

• Since the June 2019 Mineral Reserve and Resource statement, exploration drilling was focused solely at the Galena Complex as the Company constructed and commissioned Relief Canyon.
• Drilling to date at the Galena Complex includes approximately 33% of planned exploration drilling based on the Galena Complex Recapitalization Plan (“Recapitalization Plan”).
• Based on this initial drilling at the Galena Complex, measured and indicated (“M&I”) silver resources on a 100% basis (60% USA/40% Eric Sprott) increased from 27.4 million ounces to 37.3 million ounces and inferred silver resources increased from 39.0 million ounces to 78.6 million ounces. This represents a 36% and 101% increase, respectively, from previous reported estimates.

“I am pleased to see the initial exploration efforts at the Galena Complex translating into meaningful increases to silver resources in such a short time,” stated Americas President and CEO Darren Blasutti.  “A significant amount of drilling remains planned for deeper levels of the Galena Complex.  I am confident that with this drilling we will see continued increases to silver resources and eventually convert these silver resources to silver reserves.  As Relief Canyon ramps up to commercial production and we continue efforts to re-start the Cosalá Operations, we expect a renewed focus on exploration efforts at these operations in the future.”

Mineral Reserve and Mineral Resource Statement – June 30, 2020¹

Proven and Probable Mineral Reserves – 100% basis for all assets except the Galena Complex at 60%

The primary focus for the Company over the last year was the construction of the Relief Canyon mine in Nevada.   As a result, a limited amount of capital was allocated to drilling to expand or delineate gold reserves or resources.  With limited drilling conducted at Relief Canyon and the Cosalá Operations, coupled with mined depletion, gold reserves decreased by 7% while silver reserves decreased by 5%.  At the Galena Complex, reserves were relatively flat with increases to reserves offsetting depletion.  The current focus of the Recapitalization Plan is on silver resource expansion ahead of reserve development. 

As Relief Canyon continues to ramp up towards commercial production and the Company seeks to achieve the restart of mining activities at the Cosalá Operations, the Company expects to generate meaningful cash flow from its operations and expand the exploration drilling budgets at these two operations, in addition to the continued drilling at the Galena Complex pursuant to the Recapitalization Plan.

Measured & Indicated Mineral Resources – 100% basis for all assets except the Galena Complex at 60%