Americas Gold & Silver hits bonanza grades at Galena in Idaho

Americas Gold & Silver (TSX: USA; NYSE-A: USAS) on Friday said it had traced a high-grade upper extension of the producing 149 Vein at its Galena Complex in Idaho. Drilling returned exceptional silver and copper grades in spots, sending shares higher.

Hole DDH 43-317 cut 0.21 metres at 24,913 grams silver per ton (equivalent to 25,312 grams silver per tonne) and 16.9% copper from 110 metres deep. The new intercepts sit roughly 120 metres above the current mining level and could lift mill feed quality, the company said.

“Identifying this copper-silver-antimony extension positions us to potentially expand production from an already high-performing vein and enhance mill feed quality,” CEO Paul Andre Huet said in a news release. “This extension positions us to potentially expand production from an already high-performing vein.”

Drilling from the 4300 Level returned two more standout hits: 1.05 metre at 2,816 grams silver per ton, 2% copper and 1.05% antimony from 107.44 metres deep. Hole DDH 43-316 returned 2,354 grams silver per ton and 1.7% copper from 106.25 metres depth. Antimony assays for the narrowest intercepts are pending.

The 149 Vein currently being mined already contributes 600 – 700-ton cuts averaging 700 – 950 grams silver per ton below the new hits, according to company data.

The results sent the company’s Toronto-listed shares up 8.8% by midday at $1.36 apiece. Americas Gold & Silver has a market capitalization of $923.5 million (US$668.3 million). Americas had earlier this week effected a 2.5-for-1 share consolidation; trading on a post-consolidation basis is expected to begin Aug. 26 on both the TSX and NYSE American.

Antimony counts

Americas’ new 149 Vein hits slot into a back-to-silver pivot. After taking 100% of Galena in December 2024 and securing up to US$100 million to fund growth, the company is trying to lift head grades and throughput at Galena. It further targets more than 80% of revenue from silver by year-end and de-risked concentrate handling by signing a multi-metal offtake to Teck Resources’ (TSX: TECK.A, TECK.B; NYSE: TECK) Trail smelter in British Columbia.

The vein sits in the transition between the Upper Revett and St. Regis formations and remains open. Americas has drilled 4,878 metres of a planned 18,100 metres from this station. The vein is a strong candidate currently under review for long-hole open stoping, the company said.

The new hits build on other recent exploration gains at Galena. Earlier this month, the company highlighted 3.4 metres at 983 grams silver per ton in the new 034 Vein and outlined an initial target of 1.2 – 1.5 million oz. silver from that structure.

The company cautions the bonanza intercepts are narrow and follow-up drilling is still underway to confirm its continuity and mineability. Further infill and step-outs are planned.

However, metallurgical tests showed over 90% recovery of the antimony, supporting a new U.S. antimony by-product stream for the company.