The new estimate contains a proven and probable reserve of 610,000 ounces of gold, 30.6 million ounces of silver, 134 million pounds of zinc, 129 million pounds of lead and 28Mlb of copper. Measured and indicated silver resources increased from 27.4Moz to 37.3Moz and inferred silver resources from 39Moz to 78.6Moz, increases of 36% and 101%, respectively.
"A significant amount of drilling remains planned for deeper levels of the Galena Complex. I am confident that with this drilling we will see continued increases to silver resources and eventually convert these silver resources to silver reserves," said president and CEO Darren Blasutti.
Drilling to date at Galena includes about 33% of planned exploration drilling based on the Galena Complex recapitalisation plan. The primary focus for the company over the past year was the construction of the Relief Canyon mine in Nevada and as a result, limited capital was allocated to drilling at Galena. As Relief Canyon continues to ramp up towards commercial production and the company seeks to restart mining at Cosala, it expects to generate cash flow and expand exploration drilling budgets.
The Galena recapitalisation plan is part of a 60:40 joint venture with Eric Sprott.
The company has recently started drilling deeper extensions of known mineralisation. It expects further increases to M&I resources as the current exploration programme continues through the start of 2021.
Shares in Americas Gold and Silver are trading at C$3.87, valuing the company at $454 million.