Galena Mine continues exploratory drilling
The Galena Hoist towers over the Galena Mine Complex. The Galena Mine is in the midst of several different rehabilitation projects, all falling under the umbrella of its Recapitalization Plan that has pumped millions of dollars into the mine for several improvements to infrastructure, equipment, as well as exploration.
Photo by JOSH McDONALD
WALLACE — The Recapitalization Plan efforts at Americas Gold and Silver Corporation’s (AGSC) Galena Mine continue to progress and the company is now in the midst of its exploration efforts.
After finishing up the rehabilitation projects on the 4300 and 5500 levels of the mine, crews have been able to complete 13,000 (or 33%) of the 39,000 meters of proposed exploratory drilling and will continue to conduct exploratory drilling work into 2021.
The exploration plan includes two different plans for drilling- completing extensions of the known veins at depth below current infrastructure, as well as targeting extensions of current known reserves and resources in the upper levels of the operation.
The exploration of known veins below the currently mined areas of the Silver Valley’s shallowest mine is particularly exciting, as the company believes that there is a possibility that several major known silver veins all converge into one, large, ore-rich area that has yet to be mined.
They are also doing additional exploration of the 72 Vein, which was discovered in 1999 and mined from 2000 through 2006 and has produced more than 9.5 million ounces of silver.
It was a significant contributor during the period when the Galena Complex produced more than five million ounces of silver per year.
In addition to the further exploration of the 72 Vein, exploration crews will focus on the “triple point,” which is where the 175, 185 and Silver Veins are projected to converge.
This area is projected to be 100 meters below historical workings of the mine and so far, all of the projections have AGSC officials excited to continue the exploration efforts.
“We are confident that the vein systems continue at depth based on the geologic modeling we have completed to date and are excited to add further drilling through the start of 2021,” said Stefan Axell, AGSC VP of Corporate Development Communications.
The exploratory drilling of the Triple Point will begin in early September from a newly developed drill station, east of the current 5500 level drill station.
The Galena Mine’s Recapitalization Plan was announced almost one year ago when Americas Gold and Silver Corporation entered into a strategic joint venture agreement with Eric Sprott.
Sprott, an existing shareholder of AGSC, committed $20 million that was designated for capital improvements and operations in exchange for 40% interest in the Galena Complex.
These investment dollars have been the lifeblood of the successful Recapitalization Plan that is currently going on at the mine and have allowed the company to increase development, modernize infrastructure, purchase new equipment, and expand its exploration of areas not being mined at this time.
“The Galena Complex is an excellent demonstration of the precious metals optionality that the company possesses,” said Darren Blasutti, AGSC president and CEO. “We are already seeing the potential benefit from the Recapitalization Plan in terms of increased productivity, which is coinciding with significantly higher silver prices. As the shallowest operation in the Silver Valley in Idaho with hundreds of millions of dollars of infrastructure in place including excess milling capacity, we are confident that the Recapitalization Plan and the three high-grade silver target systems below known workings will propel the operation to become a significant silver producer and free cash flowing asset.”