Americas Gold and Silver NYSEAMERICAN: USAS Chairman and CEO Paul outlined the company’s efforts to increase production, improve mining efficiency and strengthen its balance sheet during a presentation at the Denver Gold show.
Paul said the company has focused over the past roughly 16 months on revitalizing its Galena Complex in Idaho, where it consolidated ownership of the district, acquired Eric Sprott’s 40% interest and purchased the nearby Crescent Mine. The company’s stated long-term objective is to return Galena to production levels comparable to 2002, when the operation produced 5 million ounces of silver.
“We know it’s been done before,” Paul said of the 2002 production level. “We just got to build the plan, build the infrastructure.” He added that the company aims to sustain higher output rather than achieve a short-lived production increase.
Long-Hole Mining Conversion at Galena
A central part of the company’s plan is converting much of Galena’s mining from traditional jackleg methods to long-hole mining. Paul said the mine had historically relied on air-leg and jackleg mining, while neighboring operations have used long-hole methods to produce about 5 million ounces annually.
Americas Gold and Silver has targeted conversion of approximately 70% of Galena’s mining to long-hole methods, alongside infrastructure improvements. Paul said the company mined its first six long-hole stopes at Galena in 2025 and reported what he described as the mine’s best grade in 20 years from those stopes.
The company has since mined 19 stopes using the new approach, according to Paul. He cited an example of a one-meter-wide stope that took about one month to mine using long-hole methods, compared with an estimated 12 to 14 months under the prior jackleg approach.
To support the transition, the company has added 12 pieces of equipment, including long-hole drills and remote-control capabilities. It is also constructing a paste-fill plant at Galena, which Paul said is expected to cost about $24 million and be completed in the fourth quarter. The plant is intended to help the company fill stopes, manage geotechnical conditions and improve mining cycles.
Paul also highlighted upgrades to the Galena shaft, which he said historically was constrained to moving 600 to 650 tons per day of ore and waste. Following modernization work that included new skips, motors and communications systems, the shaft can now move about 1,400 tons per day, he said, although the mine is not yet operating at that rate consistently.
The company has additionally restarted activity at the Coeur shaft, which had been inactive for years, and is using it to lower workers and equipment. At the Crescent Mine, Americas Gold and Silver is conducting drilling while planning a secondary egress route.
Exploration Results and Mexico Operations
Paul said the company sees significant exploration potential after what he described as a decade of limited drilling at Galena, Crescent and its Cosalá operation in Mexico. At Galena, he said the company has made six new discoveries, including the 034 Vein, which he said averaged 3.4 to 3.6 meters in width and 938 grams per ton of silver.
He also pointed to drilling at Crescent that returned grades of approximately 1,100 grams per ton of silver in narrow intervals.
In Mexico, Paul said the Cosalá operation is becoming increasingly important to the company’s portfolio. The mine produced about 1.1 million ounces in 2025, which he characterized as a record year, and he said the company expects to exceed that production level this year.
Recent drilling results in Mexico included intervals of 14 meters grading 598 grams per ton of silver, 20 meters grading 650 grams per ton, 10 meters grading 500 grams per ton, 16 meters grading 300 grams per ton and 10 meters grading 560 grams per ton, according to Paul. He said the results were four to five times higher than the average grades mined during the prior 18 months and were not included in the company’s resource estimates.
Metal Payments, Antimony Plans and Balance Sheet
Paul said silver represents about 85% of the company’s revenue, while Galena also produces copper, antimony, lead and gold. He said the company renegotiated concentrate contracts with Teck so that it is now paid for copper, gold and antimony, whereas it previously did not receive payment for copper or gold and faced penalties related to antimony.
The company plans to develop an antimony facility in Idaho with United States Antimony Corporation. Paul said the company is reviewing bids from eight groups and expects work with its partners to begin next year. He said Galena currently supplies antimony feed that is processed at United States Antimony’s Montana facility and produces roughly 4 million to 5 million pounds annually, compared with U.S. demand of about 50 million pounds.
On the balance sheet, Paul said Americas Gold and Silver eliminated approximately $76 million of debt during the second quarter through the retirement of obligations to Royal Gold and Sprott. The company ended the quarter with about $89 million in cash and roughly $50 million of undrawn capacity, he said. Since the current management team took over, Paul said the company has repaid approximately $160 million in debt.
Looking ahead, Paul said the company’s primary catalyst is updating mine plans at Galena and Cosalá to incorporate higher-grade and wider drilling targets, potentially replacing lower-grade material in future production plans. He said continued drilling and a focus on sustaining production growth will be key to the company’s goal of reaching and maintaining output of 5 million ounces of silver and beyond.
About Americas Gold and Silver (NYSEAMERICAN:USAS)
Americas Gold and Silver Corporation is a precious metals mining company focused on the acquisition, development, and operation of mineral properties in North America. Its production and exploration activities are primarily centered on silver, with additional exposure to lead, zinc, and other associated metals.
The company's principal assets include the Cosalá Operations in Sinaloa, Mexico, and the Galena Complex in Idaho. The Cosalá Operations include the San Rafael mine and related processing and infrastructure, while the Galena Complex is an underground silver-lead mining operation.
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