Galena Complex Continues To Generate Silver Production Increases

TORONTO - Americas Gold and Silver Corporation, President & CEO Darren Blasutti, said “The Cosala Operations,in Mexico, have re-started and will begin to generate revenue and cash flow in the fourth quarter. With the re-opening of the Cosala Operations, I am confident that the Company will return to positive cash flow generation at current commodity prices, reducing the necessity of further equity financing. The Galena Complex, in Idaho, continues to demonstrate its tremendous upside as demonstrated by the continued quarterly silver production increases and the successful start to the Phase II drill program. The Company expects this trend to continue for the foreseeable future.”

Production from the San Rafael mine is expected to increase over the next month as the normal mining cycle is re-established. The Los Braceros processing plant will initially be fed with a combination of existing stockpiled ore and new production from the mine. The milling rate is expected to ramp up in tandem with mine production with a goal of processing 1,800 tonnes per day. Including the mill stockpile and the broken ore in the San Rafael mine, the operation has over 20,000 tonnes of ore ready to be processed. Approximately 20 loads of existing concentrate were shipped in late October. Initial production will focus on the Main Zone consisting of high-grade zinc areas fully developed before the illegal blockade to maximize near-term free cash flow. Over the course of the next six months, the mine will continue development into the Upper Zone, which carries silver grades approximately 5-6 times higher than the Main Zone. Mining the silver-rich areas of the Cosala Operations is expected to significantly increase silver production to over 2.5 million ounces of silver per year.

The Phase II drill program at the Galena Complex began in late August 2021. The initial focus is to extend the recently discovered Silver Vein to 800 feet below the 5500 Level before year end. In addition, continued definition drilling from the 4900 Level to define mineral reserves and increase mineral resources adjacent to current production areas is part of the Phase II plan. To date, the Silver Vein has been delineated to approximately 350 ft below the 5500 Level. Drilling will continue at depth until the end of 2021.

As part of the 5500 Level Phase I drilling (completed in June 2021) targeting the Silver Vein, the Company also intersected the 220 Vein within close proximity to existing infrastructure. During the Phase II drilling plan, the Company is targeting where the Silver Vein and 220 Vein intersect and Company geologists believe both the width and grade increases at the intersection. A short drill program began in late October to test this area from the 5500 Level. The first of these holes, 55-222, drilled from the western edge of the Silver Vein, is shown below. The Company believes this high-grade area can be exploited in the near term and positively impact silver production. Mining of the Silver Vein will resume in late November and continue into 2022. This is expected to increase silver production and profitability of the operation even before the new hoist is installed in Q3-2022.

The goal of Phase II drilling is to add significant mine life in known vein systems and to discover new ore bodies both at depth and near surface. Drilling at depth will continue to focus on the three south-east plunging veins which include the 72 Vein, the Silver Vein and the down-dip extension of the 360 Complex. The Company is targeting an additional 50 million ounces of silver from the Phase II drilling program (100% basis).

The Company considered fiscal 2021 as a transitional year at the Galena Complex however the operation has already benefited from the Recapitalization Plan with silver and lead production continuing to increase on a yearly and quarterly basis. The Company is targeting to increase production to a 2 million ounce per year plan by the end of 2022 and, in the longer term, assuming continued exploration success, the Company anticipates the operation will again reach peak historical annual production levels of approximately 5 million ounces per year.