TORONTO, Dec. 19, 2019 /PRNewswire/ — Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) (“Americas” or the “Company”), a growing North American precious metals producer, provides a construction update on the Relief Canyon gold project in Nevada.
The Relief Canyon project has advanced to its final stage of construction with initial ore placement on the leach pads achieved earlier today and first gold pour expected in the first half of January 2020. The development continues on budget at a rapid pace and the Company expects to bring the mine into commercial production by late Q1/early Q2, 2020.
“Fiscal 2019 has been a pivotal year for the Company with the successful acquisition and execution of the Relief Canyon project, the ramp-up and optimization of the San Rafael mine in Mexico, and the announcement and commencement of the Galena Complex re-capitalization plan with Mr. Eric Sprott,” said Americas Gold and Silver President and CEO, Darren Blasutti. “I’m extremely proud of our technical team, the Relief Canyon employees, and contractors who were able to get ore placed on the newly constructed leach pads, only seven months since the start of construction. Construction commenced in mid-May after closing the Pershing transaction and Sandstorm financings in April, and our team has worked diligently since then to achieve the Company’s objectives. With the commencement of ore stacking, the Company is anticipating first gold production in the first half of January 2020 and commercial production by late Q1/early Q2, 2020.”
In early December, Americas began actively mining ore at Relief Canyon. The mining contractor continues to deliver and assemble mobile equipment to meet the planned ramp-up in the mining rate, as required. Construction of the leach pads is effectively complete, including placement of the overliner. Commissioning of the 3,200-foot overland conveyor system and grasshopper conveyors is complete. The Company has begun crushing and stacking ore on the leach pads with over 70,000 tons of ore stockpiled and is waiting on expected ordinary course permits before the start of leaching.
The ADR processing plant at the Relief Canyon project has received and installed over 90% of the equipment necessary to refine and pour gold. Wet testing of the plant is in its final stages and the Company plans to test the carbon stripping circuit, including electrowinning, over the next two weeks.
The Company expects to see multi-year precious metals growth in 2020 and 2021 driven primarily from the Relief Canyon mine along with progressively increasing silver production from the San Rafael mine. With the closing of the acquisition of Relief Canyon, Americas increased its precious metal reserves by approximately 250% year-over-year and over 90% on a per share basis. The ramp-up of gold production at the Relief Canyon project is expected to advance the Company towards its anticipated 500% increase in precious metals production by 2021. The Company expects to release two-year forward production and cost guidance in early February 2020.
Americas has budgeted approximately $1.9 million for exploration at Relief Canyon in 2020. Exploration drilling will commence in the south and southwest areas of the pit with the goal of increasing resources by the end of 2020. The Relief Canyon deposit is geologically open on three sides and the Company controls a land package of approximately 11,700 hectares (~30,000 acres) in-and-around the mine site, of which only 20% has been explored to date. Additional exploration plans include field work on the larger land package to identify future satellite drill targets.
About Americas Gold and Silver Corporation
Americas Gold and Silver is a high-growth, low-cost, precious metals mining company with multiple assets in North America. It owns and operates the Cosalá Operations in Sinaloa, Mexico and manages the 60%-owned Galena Complex in Idaho, USA. The Company also holds an option on the San Felipe development project in Sonora, Mexico. For further information, please see SEDAR or www.americas-gold.com