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Be the first with the news that moves the market- Americas Gold and Silver (TSX:USA) expects to begin commercial production at its Nevada-based Relief Canyon mine sometime in the next two quarters
- The company completed construction at the site almost a year ago, but ramp up to production has been slowed due to the COVID-19 pandemic
- As a result, commercial production has been delayed by one month and will commence in the second or third quarter of this year
- The company has withdrawn its full-year 2020 guidance, due to the COVID-19 pandemic’s effects on mining industries around the world
- Americas Gold and Silver (USA) is down 5.75 per cent, with shares trading for C$2.95 and a market cap of $281.1 million
Americas Gold and Silver (TSX:USA) expects to begin commercial production at its Nevada-based Relief Canyon mine sometime in the next two quarters.
The company completed construction at the site almost a year ago but ramp up to production has been slowed due to the COVID-19 pandemic.
The site has remained operational during the pandemic, but social distancing measures have curtailed the site planned schedule. As a result, the company has delayed commencing commercial production at the site by around a month.
First gold at the site was poured in mid-February and the company remains confident about the site’s progress moving forward.
Despite saying this, the company has withdrawn its full year 2020 guidance during this volatile time. However, the company does not expect the pandemic, and resulting challenges, to materially impact its previously announced 2021 guidance.
While quarantine restrictions in Mexico did include the company’s Cosalá Operations, the site has been inaccessible since before the restriction were announced. A group of protesters and unionised employees seized the site in February and the site has remained inactive ever since.
The company said that it remains confident that the issues at Cosalá can be resolved and expects to recommence operations when the Mexican Government lifts the lockdown.
President and CEO of Americas Gold and Silver, Darren Blasutti is eager to finally ramp up operations at Relief Canyon.
“All aspects of the Relief Canyon mine are starting to perform near design capacity following some initial teething pains common to commissioning a new operation.
“These start‐up challenges took slightly longer to remediate due to travel and operational restrictions caused by the COVID‐19 pandemic. However, Relief Canyon is now well on its way to a successful ramp‐up,” he said.
Speaking on the pandemic, Darren went on to say that the company is closely monitoring any development and remains focused on the health and safety of its staff.
Americas Gold and Silver (USA) is down 5.75 per cent, with shares trading for C$2.95 at 10:52am EDT.
