First Phase Of Upgrades On The Galena No. 3 Shaft

TORONTO – Americas Gold and Silver Corporation has completed Phase 1 upgrades to increase the hoisting capacity of the No. 3 Shaft at its Galena Complex, located in Wallace, Idaho. The Phase 1 upgrade, completed ahead of schedule, is part of a planned two-phase upgrade project on the No. 3 Shaft, and a key component of the Company’s ambitious production growth strategy at the Galena Complex. The Phase 1 upgrade was completed during a 10-day shutdown period, four days shorter than planned.
Paul Andre Huet, Chairman and CEO, said, “I am very pleased to announce that the first phase of the Galena No. 3 Shaft upgrade has been completed ahead of schedule, which is a tremendous outcome for our operations. I would personally like to thank and congratulate our team on a very successful upgrade period which was completed in just 10 days versus a planned 14 days.
During the due diligence period prior to the new management team joining Americas, our team recognized the potential to substantially increase production from the Galena Complex and identified shaft upgrades as a critical element to our success. Upon completion of the upgrades on the motor, lilies, brakes, and introducing hoist-control automation, we expect to increase skipping times from the current 690 feet per minute to approximately 1,200 to 1,400 feet per minute and increase our skipping capacity from approximately 40 tons per hour to approximately 100 tons per hour. I am very excited to say that in just our first few days of operating the upgraded hoist, we have already reached 80 tons per hour which is a 100% improvement on our existing skipping capacity. This will enable us to move a significantly larger amount of tons from our operation while we continue to set up the mine for increased long hole stoping next year. Very importantly, we now have a spare 2,250 hp hoist motor for our primary No. 3 shaft for the first time, providing critical backup capacity and derisking our mine plan.
“The Galena team continues to execute on our overall strategy of increasing the safety and efficiency of the Galena mine by delivering projects ahead of plan and under budget while continuing to operate the mine safely and hit our production targets. We look forward to updating our stakeholders on the second phase of the No. 3 Shaft upgrades before the end of the year.”