Americas Gold & Silver boosts production with Galena shaft upgrade

Galena Complex: A Leap in Production Efficiency

Amid a silver market rally, America's Gold & Silver Corporation is poised for a major leap, thanks to infrastructure upgrades at its Galena Complex. The company, known for its strategic antimony production, has made significant advancements in its operations, promising a substantial rise in output.

Accelerated Infrastructure and Production Goals

Enhancements at the Galena Complex, especially the completion of the No. 3 shaft upgrade ahead of schedule, have markedly increased hoisting capacity from 42 to a projected 120 tonnes per hour. As stated by Oliver Turner, Executive VP of Corporate Development, the introduction of a more powerful hoist motor is pivotal:

"We've replaced the hoist motor on top of the number three shaft with a 2,250 horsepower motor... This allows us to increase production and we've had some record days in terms of hoisting."

This transformation is designed to boost ore production from 350 tonnes per day to over 900 tonnes, reinforcing the mine’s capacity to achieve its 5-million-ounce annual silver production target.

Strategic Antimony Production

The Galena mine holds the distinction of being the only active antimony producer in the United States. This is strategically significant amid rising geopolitical concerns about critical minerals. With historical production levels reaching more than 20 million pounds of antimony, Americas Gold & Silver is uniquely positioned to benefit from the U.S. government's over $2 billion investment in domestic antimony production.

"People want to be pushing these projects forward," Turner notes. "What about existing production and what about expanding production in the US? That's exactly what Galena provides."

Strong Financial Outlook and Multi-Stream Revenue

High-grade silver operations, producing between 400-450 grams per tonne, bolster financial outcomes with potential for even higher yields. With silver prices significantly above initial estimates, the company capitalizes on increased revenues, further supported by byproduct credits from lead, copper, gold, and antimony.

Moreover, renegotiated contracts ensure comprehensive valuation of all byproducts, enhancing financial stability and reinforcing the company's strategic outlook.

Infrastructure Strength and Operational Diversification

The company's operations in Idaho’s Silver Valley benefit from a robust mining infrastructure, skilled workforce, and advantageous regulatory environments. The Galena Complex, alongside Cosalá operations in Mexico, offers a diversified revenue stream and operational resilience, stabilizing the company's financial journey while expanding production capabilities.

Innovation in Mining Techniques

Americas Gold & Silver’s adoption of long-hole stoping at the Galena Complex promises heightened safety and efficiency. With a paste backfill plant slated for 2025, this innovative method is set to unlock further production potential, ensuring the mine can meet its ambitious targets.

Addressing Risks and Ensuring Growth

While the outlook is promising, challenges such as silver price volatility and operational complexities linger. Nonetheless, the company's strategic positioning, enhanced infrastructure, and diversified asset base provide a buffer against potential downturns.