Americas GOLD and Silver Corporation Reports Third Quarter 2021 Results
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AMERICAS GOLD AND SILVER CORPORATION REPORTS THIRD QUARTER 2021 RESULTS
TORONTO, ONTARIO— November 15, 2021 —Americas Gold and Silver Corporation (TSX: USA) (NYSE
American: USAS) (“Americas” or the “Company”), a growing North American precious metals producer,
reports consolidated financial and operational results for the quarter ended September 30, 2021.
This earnings release should be read in conjunction with the Company’s Management’s Discussion and
Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have
been posted on the Americas Gold and Silver Corporation SEDAR profile at www.sedar.com, and on its
EDGAR profile at www.sec.gov, and which are also available on the Company’s website at www.americas‐
gold.com. All figures are in U.S. dollars unless otherwise noted.
Operational and Third Quarter Financial Highlights
● Revenue of $10.9 million and net loss of $18.6 million for Q3‐2021 or a loss of ($0.13) per share,
with the loss mostly attributable to operating costs at Relief Canyon. With the temporary
suspension of mining at Relief Canyon, the Company has significantly reduced the monthly spend
moving forward. The Company continues leaching operations and ongoing metallurgical test work
at Relief Canyon.
● The Cosalá Operations are operational with the San Rafael mine and Los Braceros mill expected to
ramp‐up to full production of approximately 1,800 tonnes per day next month. Concentrate
shipments have resumed. A return to revenue and cash flow generation is expected later in Q4‐
2021.
● Galena’s Recapitalization Plan is proceeding well with the Company continuing to experience
higher year‐over‐year silver production in Q3‐2021 compared to Q3‐2020. Silver production has
increased by 35% year‐over‐year.
● Phase 2 drill program at the Galena Complex began in late August 2021 with the initial focus on
expanding the recently discovered Silver Vein extension at depth from an eastern drill station on
the 5500 Level as well as definition drilling on the 4900 Level. With the completion of Phase 1
drilling midyear, proven and probable silver ounces increased by 38%, measured and indicated
silver ounces increased by 72% and inferred silver ounces increased by 36%, year‐over‐year.
● On November 12, 2021, the Company amended its existing 2024 Convertible Debenture by
increasing the outstanding principal balance by C$6.3 million for a total outstanding of C$17.9
million, among other terms.
“With the reopening of the Cosalá Operations and the strong current metal prices, I am confident the
Company has turned the corner with the return to cash flow generation expected in the near term and the
risk of further equity dilution significantly reduced,” stated Americas Gold and Silver President & CEO
Darren Blasutti.
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Cosalá Operations
The Cosalá Operations have re‐started and all workers have been re‐called. The Company has addressed
over 95% of the recommendations from the Ministry of Labour report. Outstanding items are longer‐term,
caused by the 19‐month illegal blockade, and administrative in nature.
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 maximizing near‐term free cash flow by mining high‐grade zinc areas of the
Main Zone which were fully developed prior to the illegal blockade. 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 Cosalá Operations is expected to
significantly increase silver production to over 2.5 million ounces of silver per year.
Galena Complex
The Phase II drill program at the Galena Complex began in late August 2021. The initial focus is to test the
recently discovered Silver Vein extension 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 extension 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 extension, the
Company also intersected the 220 Vein near existing infrastructure. During the Phase II drilling plan, the
Company is targeting the Silver Vein extension and 220 Vein intersection 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 Company believes this high‐grade area can be exploited in the near
term and positively impact silver production. Mining of the Silver Vein extension will resume in late
November 2021 and continue into 2022. This program is expected to increase silver production and
profitability of the operation even before the new hoist installation is completed 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 extension and the down‐dip extension of the 360
Complex. The Company is targeting an additional 50 million ounces of silver from the Phase II drill program
(on a 100% basis).
Fiscal 2021 is 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. Assuming continued exploration success, the Company anticipates the operation will again reach
peak historical annual production levels of approximately 5 million ounces per year in the longer term.
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Relief Canyon
A record of decision for the Phase 2 Environmental Impact Study (“EIS”) was published by the Bureau of
Land Management on October 4, 2021. The EIS will allow the Company to deepen the existing pit below
the water table, expand the mining permit boundary, expand and add waste rock storage facilities, heap
leach pads, process ponds, groundwater dewatering facilities, and groundwater re‐infiltration facilities.
The Company is committed to continuing efforts to resolve the metallurgical challenges at Relief Canyon.
However, the Company is in the process of reopening the Cosalá Operations and is currently prioritizing its
capital resources to the restart. As a result of these capital allocation decisions, Relief Canyon has
temporarily suspended mining operations as of August 13, 2021 with approval by the Board of Directors.
The Company continues leaching operations with the most recent run‐of‐mine leach pad having recovered
over 60% of gold place on that pad to‐date. An extensive audit of drilling, sampling, ore control, and
modelling, implementing internal QA/QC programs, and metallurgy testing program on carbonaceous
material is ongoing in an effort to improve recoveries and the overall profitability. The Company plans to
update the market in early 2022 on next steps.
Financing
On November 12, 2021, the Company amended its existing 2024 Convertible Debenture by increasing the
outstanding principal balance by C$6.3 million to a total outstanding principal of C$17.9 million, in addition
to amending its conversion price of C$3.35 to C$1.48 (based on a 35% premium to the 5‐day VWAP at the
time the increase to the principal amount was originally discussed), and retraction option terms. The net
proceeds raised will be used for the previously stated purposes relating to the reopening of the Cosalá
Operations and working capital purposes. All other material terms of the debenture remain unchanged.
The effectiveness of the amendments and the listing of the shares issuable upon conversion are subject to
the approval of the TSX.
The Company continues to deliver gold ounces under the Sandstorm agreement and expects to meet its
near‐term delivery requirements. If the Company is unable to meet its requirements, Sandstorm has
agreed to provide equity funding to support any liquidity with respect to such requirements in 2022.
Consolidated Operations
Consolidated operating results from YTD‐2021 were generally not comparable to YTD‐2020 due to the
illegal blockade at the Cosalá Operations, the Recapitalization Plan at the Galena Complex, and the
temporary suspension of mining operations at Relief Canyon. Consolidated revenue increased by $3.6
million during Q3‐2021 compared to Q3‐2020 primarily due to increased silver production and realized
lead prices at the Galena Complex during the period plus revenue from Relief Canyon following the
declaration of commercial production.
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a high‐growth precious metals mining company with multiple
assets in North America. The Company owns and operates the Relief Canyon mine in Nevada, USA, the
Cosalá Operations in Sinaloa, Mexico and manages the 60%‐owned Galena Complex in Idaho, USA. The
Company also owns the San Felipe development project in Sonora, Mexico. For further information, please
see SEDAR or www.americas‐gold.com.
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For more information:
Stefan Axell Darren Blasutti
VP, Corporate Development & Communications President and CEO
Americas Gold and Silver Corporation Americas Gold and Silver Corporation
416‐874‐1708 416‐848‐9503
Technical Information and Qualified Persons
The scientific and technical information relating to the operation of the Company’s material operating
mining properties contained herein has been reviewed and approved by Daren Dell, P.Eng., Chief Operating
Officer of the Company. The scientific and technical information relating to mineral resources and
exploration contained herein has been reviewed and approved by Niel de Bruin, Director of Geology of the
Company. Each of Messrs. Dell and de Bruin are "qualified persons" for the purposes of NI 43‐101.
The Company’s current Annual Information Form and the NI 43‐101 Technical Reports for its other material
mineral properties, all of which are available on SEDAR at www.sedar.com, and EDGAR
at www.sec.gov contain further details regarding mineral reserve and mineral resource estimates,
classification and reporting parameters, key assumptions and associated risks for each of the Company’s
material mineral properties, including a breakdown by category.
The diamond drilling program used NQ‐size core. Americas Gold and Silver’s standard QA/QC practices
were utilized to ensure the integrity of the core and sample preparation at the Galena Complex through
delivery of the samples to the assay lab. The drill core was stored in a secure facility, photographed, logged
and sampled based on lithologic and mineralogical interpretations. Standards of certified reference
materials, field duplicates and blanks were inserted as samples shipped with the core samples to the lab.
Analytical work was carried out by American Analytical Services Inc. (“AAS”) located in Osburn, Idaho. AAS
is an independent, ISO‐17025 accredited laboratory. Sample preparation includes a 30‐gram pulp sample
analyzed by atomic absorption spectrometry (“AA”) techniques to determine silver, copper, and lead, using
aqua regia for pulp digestion. Samples returning values over 514g/t Ag are re‐assayed using fire‐assay
techniques for silver. Additionally, samples returning values over 23% Pb are re‐assayed using titration
techniques.
Duplicate pulp samples were sent out quarterly to ALS Global, an independent, ISO‐17025 accredited
laboratory based in Reno, Nevada to perform an independent check analysis. A conventional AA technique
was used for the analysis of silver, copper and lead at ALS Global with the same industry standard
procedures as those used by AAS. The assay results listed in this report did not show any significant
contamination during sample preparation or sample bias of analysis.
All mining terms used herein have the meanings set forth in National Instrument 43‐101 – Standards of
Disclosure for Mineral Projects (“NI 43‐101”), as required by Canadian securities regulatory authorities.
These standards differ significantly from the requirements of the SEC that are applicable to domestic
United States reporting companies. Any mineral reserves and mineral resources reported by the Company
in accordance with NI 43‐101 may not qualify as such under SEC standards. Accordingly, information
contained in this news release may not be comparable to similar information made public by companies
subject to the SEC’s reporting and disclosure requirements.
Cautionary Statement on Forward‐Looking Information:
This news release contains “forward‐looking information” within the meaning of applicable securities
laws. Forward‐looking information includes, but is not limited to, Americas Gold and Silver’s expectations,
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intentions, plans, assumptions and beliefs with respect to, among other things, estimated and targeted
production rates and results for gold, silver and other precious metals, the expected prices of gold, silver
and other precious metals, as well as the related costs, expenses and capital expenditures; the
recapitalization plan at the Galena Complex, including the expected production levels and potential
additional mineral resources thereat; the resumption of mining and processing operations at the Cosalá
Operations following the resolution of the illegal blockade, including expected production levels and the
continuity of legal access for employees and contractors; the expected capital costs required in connection
with the resumption of mining and processing operations at the Cosalá Operations; the expectations
regarding the level of support from the Mexican government with respect to the long‐term stability of
Cosalá Operations, and its ability to maintain such support in the near‐ and long‐term; the Company’s
production, development plans and performance expectations at the Relief Canyon Mine, the Company’s
efforts to resolve metallurgical challenges at Relief Canyon, and its ability to finance, develop and operate
Relief Canyon, including any expected improvement of operations and overall project economics in
connection therewith, the timing and conclusions of the data compilation and analysis occurring at Relief
Canyon and the length of time of the temporary suspension in mining operations at Relief Canyon. Often,
but not always, forward‐looking information can be identified by forward‐looking words such as
“anticipate”, “believe”, “expect”, “goal”, “plan”, “intend”, “potential’, “estimate”, “may”, “assume” and
“will” or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions, or statements about future events or performance. Forward‐looking information
is based on the opinions and estimates of Americas Gold and Silver as of the date such information is
provided and is subject to known and unknown risks, uncertainties, and other factors that may cause the
actual results, level of activity, performance, or achievements of Americas Gold and Silver to be materially
different from those expressed or implied by such forward‐looking information. With respect to the
business of Americas Gold and Silver, these risks and uncertainties include risks relating to widespread
epidemics or pandemic outbreak including the COVID‐19 pandemic; the impact of COVID‐19 on our
workforce, suppliers and other essential resources and what effect those impacts, if they occur, would have
on our business, including our ability to access goods and supplies, the ability to transport our products
and impacts on employee productivity, the risks in connection with the operations, cash flow and results
of the Company relating to the unknown duration and impact of the COVID‐19 pandemic; interpretations
or reinterpretations of geologic information; unfavorable exploration results; inability to obtain permits
required for future exploration, development or production; general economic conditions and conditions
affecting the industries in which the Company operates; the uncertainty of regulatory requirements and
approvals; fluctuating mineral and commodity prices; the ability to obtain necessary future financing on
acceptable terms or at all; the ability to operate the Company’s projects; and risks associated with the
mining industry such as economic factors (including future commodity prices, currency fluctuations and
energy prices), ground conditions, illegal blockades and other factors limiting mine access or regular
operations without interruption, failure of plant, equipment, processes and transportation services to
operate as anticipated, environmental risks, government regulation, actual results of current exploration
and production activities, possible variations in ore grade or recovery rates, permitting timelines, capital
and construction expenditures, reclamation activities, labor relations or disruptions, social and political
developments and other risks of the mining industry. The potential effects of the COVID‐19 pandemic on
our business and operations are unknown at this time, including the Company’s ability to manage
challenges and restrictions arising from COVID‐19 in the communities in which the Company operates and
our ability to continue to safely operate and to safely return our business to normal operations. The impact
of COVID‐19 on the Company is dependent on a number of factors outside of its control and knowledge,
including the effectiveness of the measures taken by public health and governmental authorities to combat
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the spread of the disease, global economic uncertainties and outlook due to the disease, and the evolving
restrictions relating to mining activities and to travel in certain jurisdictions in which it operates. Although
the Company has attempted to identify important factors that could cause actual results to differ materially
from those contained in forward‐looking information, there may be other factors that cause results not to
be as anticipated, estimated, or intended. Readers are cautioned not to place undue reliance on such
information. Additional information regarding the factors that may cause actual results to differ materially
from this forward‐looking information is available in Americas Gold and Silver’s filings with the Canadian
Securities Administrators on SEDAR and with the SEC. Americas Gold and Silver does not undertake any
obligation to update publicly or otherwise revise any forward‐looking information whether as a result of
new information, future events or other such factors which affect this information, except as required by
law. Americas Gold and Silver does not give any assurance (1) that Americas Gold and Silver will achieve
its expectations, or (2) concerning the result or timing thereof. All subsequent written and oral forward‐
looking information concerning Americas Gold and Silver are expressly qualified in their entirety by the
cautionary statements above.