Americas Gold and Silver Raises Silver Production Goals
Boosted by an increase in activity following the resolution of a union conflict at its Cosalá operations in Sinaloa, Americas Gold and Silver Corporation elevated its annual silver production guidance. The company expects its silver equivalent production to increase to between 4.8 and 5.2MMoz in 2022, with further increases to between 7.0 to 7.4MMoz in 2024. This represents growth of approximately 240 percent and 375 percent, respectively, compared to 2021’s production.
“Silver and silver equivalent production is expected to significantly increase over the next couple of years and benefit from continuing strong silver and base metal prices,” stated Americas President and CEO, Darren Blasutti. “Cosalá silver production is expected to increase toward 2H22, as higher-grade silver ore from the upper zone (of the San Rafael deposit) is mined. The Galena Complex is expected to gain from increased operating capacity and flexibility once the Galena Hoist is commissioned in the second half of 2022, resulting in higher silver production in 4Q22 and into 2023,” he added.
The Canada-based company also informed that for 4Q21, total silver production increased at the Galena Complex, owned by the company at 60 percent, as well as at the Cosalá operation despite battling a blockade for over a year. For 4Q21, silver production stood at 207MozTotal silver production for 2021 was 670Moz, while silver equivalent production was 1.5MMoz. Now that the 19-month blockade at Cosalá has been resolved and the company carried out its continued recapitalization at the Galena Complex, Americas Gold and Silver expects 2022 production to significantly increase.
Cosalá comprises 67 mining concessions, covering approximately 19,385ha in Sinaloa, including the San Rafael mine, where the company produces silver, zinc and lead. From January 2020 to September 2021, the company’s operations were blocked by union members, who argued that the mine was too dangerous to work at. However, Americas emphasized on several occasions that these claims were based on false accusations and that the real objective of the group was to dishonestly obtain collective agreements and other benefits.
After months of negotiations between the government, the union and the company, Americas restarted operations on Sept. 13, 2021. Americas stressed that a key factor for the effective and permanent opening of the mine will be the government´s continued support.