Americas Gold and Silver Corporation reports that it has poured the gold at the company’s Relief Canyon project in Nevada.
Americas Gold and Silver Corporation (TSX:USA,NYSEAMERICAN:USAS) reports that it has poured the gold at the company’s Relief Canyon project in Nevada.
As quoted from the press release:
- The company successfully poured first gold at its Relief Canyon gold mine and has completed initial construction within the estimated budget of US$28 to US$30 million.
- Relief Canyon ramp up is proceeding well with approximately 200,000 tonnes stacked on the leach pad. The mine is now running 24-hours a day which will enable the operation to reach design capacity of 14,500 tonnes per day.
- Precious metals production is expected to significantly increase over the next two years as production ramps up at Relief Canyon coupled with an anticipated increase in silver production from the Cosalá Operations starting in the second half of 2020. The Company’s gold equivalent production is expected to increase from approximately 14,000 ounces in 2019 to a range of 60,000 to 70,000 ounces in 2020 and 90,000 to 110,000 ounces in 2021, greater than a 300 percent and 500 percent increase, respectively, in gold equivalent production compared with 2019. The two-year outlook does not include production from the Galena Complex following the announcement of the recapitalization plan for 2020.
- Production from the Cosalá Operations increased year-over-year across key metrics including ore processed, silver production, zinc production and lead production. Silver production increased by 28 percent to 572,036 silver ounces in 2019 from 448,150 silver ounces in 2018. Cash costs and all-in sustaining costs were negatively impacted by lower zinc and lead prices as well as increased concentrate treatment charges.
- Recapitalization of the Galena Complex began in mid-October 2019 with the focus over the next 18 months on mine development, new equipment purchases and exploration to define and expand silver resources. As a result, the Company has suspended disclosure of certain operating metrics such as production, cash cost and AISC for the Galena Complex.
- As of December 31, 2019, the Company had cash and cash equivalents of US$20.0 million.
“Relief Canyon has successfully poured its first gold and the Company is excited to see the asset ramp up toward commercial production in the second quarter of this year,” stated Americas President and CEO Darren Blasutti. “Our two-year outlook demonstrates that 2020 will be a transformational year for the Company with further significant increases expected in 2021. Relief Canyon will provide considerable exposure to gold and increase the Company’s forecasted consolidated revenue to approximately 70 percent from precious metals based on current prices.”