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Americas Silver reserves jump 250%

Americas Silver is to rename as Americas Gold and Silver to reflect the increasing importance of the yellow metal in its portfolio, as it also announced a 250% increase in its gold-equivalent reserves from 320,000oz to 1.12 million ounces.
Americas Silver reserves jump 250% Americas Silver reserves jump 250% Americas Silver reserves jump 250% Americas Silver reserves jump 250% Americas Silver reserves jump 250%

Relief Canyon in Nevada, USA

Staff Reporter

"The recent acquisition of the Relief Canyon mine and reserve growth from our existing operations have increased our gold equivalent reserves by about 250% and is expected to increase our precious metals production by more than 500% by 2021. This significant increase in our leverage to gold creates a unique re-rating opportunity for our shareholders as we transition to a diversified precious metals producer with multiple assets in North America," said president and CEO Darren Blasutti.

Proven and probable gold reserves increased to 653,000 ounces as a result of the acquisition of Pershing Gold and the Relief Canyon mine in Nevada, USA in April. Proven and probable reserves of silver increased 45%, from 25.6Moz to 37.1Moz, primarily from the inclusion of 14.5Moz from EC120 project reserves at the Cosala operations in Sinaloa, Mexico following the completion of a preliminary feasibility study and 1.1Moz from Relief Canyon.

These were partially offset by mine depletion and a reduction in silver reserves at the Galena complex in Idaho, USA and San Rafael, part of the Cosala operations. A 1.2Moz (11%) decrease at San Rafael was mainly due to mining depletion in the Main Central and Main Superior areas of the orebody. A 3Moz (20%) decrease at Galena is due to mining depletion and adoption of more conservative estimation parameters.

Construction continues to advance at Relief Canyon with earthworks for leach pad construction about 85% complete and the majority of the pad liner fabricated and onsite. About 35% of the liner is installed and over 35% of the leach pad overliner has been crushed, with completion of both scheduled for the fourth quarter of this year.

This month will see the delivery and installation of the crusher, conveyor system and refinery equipment. First gold pour continues to be anticipated for December.

Shares in Americas Gold and Silver (TSX:USA) are trading at C$4.30, valuing the company at $355 million.