Americas to reopen Cosalá operations in Mexico after lengthy blockade
(Kitco News) - Americas Gold and Silver Corporation (TSX: USA) announced today that it has signed an agreement with the Mexican Ministries of Economy, Interior and Labour committing to a reopening at the Cosalá operations shut for over 17 months by an illegal blockade.
The company said that after the long period of denied access, the agreement contemplates immediate right to possession of the property with a joint inspection coordinated by the Ministry of Labor this Thursday, so that the mine can restart operations in a safe and sustainable manner.
Following the inspection and company review, Americas will provide an update on a schedule to a return to normal operations at the mine and mill.
Once production can be initiated, Americas said it anticipates that the current higher silver prices will allow the company to target the higher-grade silver ores in the Upper Zone of San Rafael and develop the silver-copper EC120 project.
The company added that 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 annum in the years following the restart.
Coupled with the exploration success at the Galena complex in Idaho, where the company is targeting to reach peak historical annual production levels of approximately 5 million ounces per year, the company expects to significantly increase silver production over the next few years.
Americas Gold and Silver is a 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.