Construction of the $30-million Relief Canyon gold mine, in Nevada, is proceeding well and remains on track to produce its first gold before the end of the year, dual-listed Americas Gold and Silver CEO Darren Blasutti reported on Wednesday.
The company acquired Relief Canyon through the acquisition of Pershing Gold earlier this year, and in April approved construction of the mining and heap leaching facilities.
Located near Reno in Pershing county, Relief Canyon includes three historic openpit mines and a state-of-the-art, fully permitted and constructed heap-leach processing facility. The mine is expected to produce about 91 000 oz/y of gold over a 5.6 year mine life at an all-in sustaining cost of $801/oz gold.
Meanwhile, Blasutti said that the company’s Cosala operations, in Mexico, continued to outperform, while a recapitalisation plan was in place for the Galena Complex, in Idaho.
Americas entered into a joint venture (JV) agreement with investor Eric Sprott last month for a 40% non-controlling interest of the Galena Complex with initial contribution up to $20-million to fund capital improvements and operations. The goal of the JV agreement is to position the Galena Complex to significantly grow resources, increase production, and reduce operating costs at the mine over the next two years.
The company reported third-quarter revenue of $12.5-million and net loss of $8.8-million, an increase of $0.7-million in revenue and an increase in net loss of $3-million compared with the prior-year period, owing to lower tonnage and grades at the Galena Complex and higher zinc treatment charges at the Cosalá operations. Higher non-cash one-time items also increased the loss.
The company’s third-quarter production was 1.3-million silver equivalent ounces and 0.3-million silver ounces, representing decreases of 5% and 7% year-on-year to both silver equivalent ounces and silver ounces, respectively.