AGSC reports promising first quarter
Staff Reporter | May 30, 2021 3:35 PM
WALLACE — Americas Gold and Silver Corporation reported consolidated financial and operational results for the quarter ended March 31.
These consolidated results pertain to the company’s ongoing work efforts at its Galena Mine and Relief Canyon complexes.
After a historic final quarter report in 2020, the Galena continues to show promising results that will allow them to see increased production.
Initial drilling from the new drill station on the 5500 Level has yielded several high-grade intercepts at depth.
In a recent release from AGSC, the discovery of a new vein, which is located near an existing ore vein has the company excited.
“Galena geologists discovered a new silver-copper trend south of the prolific Silver Vein,” the release read. “The strike and dip of this new trend matches very well with the strike and dip of the majority of the Silver Vein mined from the 3200 Level to the 4300 Level. Initial interpretations are that this trend is either a southern splay of the Silver Vein or that it is the true Silver Vein at depth.”
Dip is the acute angle that a rock surface makes with a horizontal plane, while the strike is the direction of the line formed by the intersection of a rock surface with a horizontal plane.
AGSC expects 2021 to be a transitional year at the Galena, with the goals of future production on the horizon as they continue their exploratory drilling.
“Longer term and assuming continued exploration success, with the results from the 5500 Level and East Coeur drilling providing a solid initial indication, the Company is confident that the operation will again reach peak historical annual production levels of approximately 5 million ounces per year,” read the release.
The mine saw significant increases in production in its year-over-year production in the fourth quarter of 2020.
Citing the completion of key underground development projects, including work done on the 5500 Level and equipment purchases as major keys to success, it was reported that the company’s fourth quarter production in 2020 was a 70% increase over what they had during the same time frame in 2019.
The success can be tied almost directly to the Galena Mine’s Recapitalization Plan, which began in 2019 when AGSC 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 ongoing at the mine and has allowed the company to increase development, modernize infrastructure, purchase new equipment, and expand their exploration of areas that were previously unmined.