Galena Mine moves into next phase
The Galena Mine has entered Phase 2 of its drilling program as part of its ongoing Recapitalization Plan.
Photo by JOSH McDONALD
WALLACE — Americas Gold and Silver recently announced that they have completed Phase 1 of their drilling program at the Galena Complex as part of their ongoing Recapitalization Plan.
Phase 1 ran from July 2020 through June of this year, with Phase 2 now underway with several targets identified.
According to a recent release from AGS, they will continue to drill three south-east facing veins including the 72 Vein, the Silver Vein, and an extension of the 360 Complex.
A newly completed drill station on the 5500-Level will allow miners to test the extension of the Silver Vein, and the first test holes have commenced with a target of reaching 500 feet below the station.
Subsequent drill stations are planned further east on the 5500-Level to continue to target the veins mentioned previously.
The 360 Complex saw tremendous drilling success during Phase 1, and now in Phase 2 crews will continue to explore that area to determine the size and continuity of the multiple high-grade mineralized vein systems.
AGS is hoping that through this second phase in their drilling program that they will add a significant amount of years to the life of the Galena Complex and is targeting an additional 50 million ounces of silver.
“I expect the second half of 2021 will showcase the strength of the company’s silver portfolio following a challenging start to the year,” said Americas Gold and Silver President & CEO Darren Blasutti. “The anticipated resource update for the Galena Complex is projected to highlight the significant potential of the asset while silver production continues to ramp-up quarter over quarter.”
The Galena Mine’s Recapitalization Plan was announced in 2019 when Americas Gold and Silver Corporation entered into a strategic joint venture agreement with Eric Sprott.
Sprott, an existing shareholder of Americas Gold and Silver Corporation (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 their exploration of areas not being mined at this time.
AGS is targeting to increase production to a two million ounce per year plan by the end of 2022 and longer term, assuming continued exploration success, and anticipates the operation will again reach peak historical annual production levels of approximately five million ounces per year.