Galena’s Recapitalization Plan progressing ‘better than expected’
Photo by JOSH McDONALD 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 their Recapitalization Plan that has pumped millions of dollars into the mine for several improvements to infrastructure, equipment, as well as exploration.
WALLACE — It was announced last September that the Americas Gold and Silver Corporation (AGSC) entered into a strategic joint venture agreement with Eric Sprott to recapitalize operations at the Galena Mine.
Sprott, an existing shareholder of Americas Gold and Silver Corporation, committed $20 million that was designated for capital improvements and operations in exchange for 40% interest in the Galena Complex.
AGSC kicked in an additional $5 million to fund further capital improvements.
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 their exploration of areas not being mined at this time.
So far, the plan is going well and has surpassed the company’s initial expectations according to Andrea Totino, who works in Investor Relations for AGSC.
“The Recapitalization Plan that began in October 2019 is proceeding better than expected with benefits in both production and exploration, while positively impacting productivity and worker morale,” Totino said. “The Recapitalization Plan improves productivity in the short term with the purchase and refurbishment of underground mining equipment. Underground development improvements, additional equipment procurements, and an exploration drilling program will benefit the operation longer term by further improving mining efficiency and lowering cash costs.”
The exploration, designed for adding mineral resources, has already yielded successful results in the first quarter of 2020, and was initially budgeted for a total of 39,000 meters of exploration drilling is 20% complete.
According to a release from AGSC, silver and lead production increased by 44% and 67% respectively during the first quarter.
The release also stated that, based on the current drill plan, AGSC expects drilling to finish in approximately 15 months with two drills in operation. Targets include various extensions of known veins, with emphasis on untested zones below the 5500 Level, which is the deepest working level of the mine.
The rehabilitation project specific to the plan is already underway, with the 4300 Level expected to be complete by the end of this month.
That rehab work also includes a recently developed drill station on the 4300 Level that will facilitate testing of extensions of silver/lead‐rich zones, which were scheduled to begin this month.
The 5500 Level drift rehabilitation is complete, and a new ramp that will connect the 5200 and 5500 Levels is proceeding as planned, which will allow miners and equipment to move between the levels with greater ease and efficiency.