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First gold pour at Americas' Relief Canyon

19th February 2020

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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The Relief Canyon gold mine, in Nevada, has successfully poured its first gold and has now completed initial construction within its budget of $28-million to $30-million, TSX- and NYSE American-listed Americas Gold and Silver reported on Tuesday.

The first gold pour was achieved in nine months from the start of production in May last year.

The mine will ramp up to full design capacity of 14 500 t/d in the second quarter, president and CEO Darren Blasutti confirmed in a statement.

He added that Relief Canyon would provide considerable exposure to gold and increase the company’s forecast consolidated revenue to about 70% from precious metals, based on current prices.

“Our two-year outlook demonstrates that 2020 will be a transformational year for the company with further significant increases expected in 2021,” said Blasutti.

The company expects to significantly increase precious metals production with the gold contribution from Relief Canyon. Consolidated gold-equivalent production for 2020 is anticipated to be between 60 000 oz and 70 000 oz, which includes pre-commercial production gold sales from Relief Canyon. This represents a year-on-year increase in gold equivalent production of about 300%.

All-in sustaining costs for 2020 are expected to range between $900 and $1 100 a gold-equivalent ounce (GEO).

Silver production from the Cosalá operations, in Mexico, in 2020 is forecast to be between 0.8-million and 0.9-million silver ounces. Cosalá is expected to increase silver production throughout 2020 benefitting from higher grade silver areas in the Upper zone of the San Rafael mine in the second half of 2020. 

Americas said that production from Cosalá was predicated on a resolution to the illegal blockade, that currently forced the company to suspend mining and processing.

In 2021, the company anticipates GEO production to further increase in 2021 as Relief Canyon contributes a full-year of commercial production. GEO production is expected to increase to between 90 000 oz to 110 000 oz in 2021 bringing the increase to more than 500%. 

The 2021 outlook includes silver production from the Cosalá Operations of 1.0-million to 1.5-million silver ounces. Production from Cosalá in 2021 is expected to fully benefit from higher grade silver areas in the Upper zone that increasingly contribute by the end of 2020. 

Consolidated production in 2019 was 5.8-million silver equivalent ounces, including 1.2-million silver ounces, compared with production in 2018 of 6.3-million silver equivalent ounces, including 1.4-million silver ounces, representing a decrease of 18% and 7%, respectively.  Production in 2019 includes only nine months of production from the Idaho-based Galena Complex, which is being recapitalised.

Edited by Creamer Media Reporter

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