Americas Gold & Silver Completes Galena Complex Shaft Upgrades Ahead of Schedule, Doubles Production Capacity

• Americas Gold & Silver Corporation completed Phase 1 upgrades to the No. 3 Shaft at its Galena Complex four days ahead of the planned 14-day schedule
• The upgrades delivered a 100% improvement in skipping capacity, reaching 80 tons per hour in initial operations versus the previous 40 tons per hour
• Hoisting speeds are expected to increase from 690 feet per minute to approximately 1,200-1,400 feet per minute upon full implementation
• The company now maintains critical backup capacity with a spare 2,250 hp hoist motor for enhanced operational security
• Phase 2 upgrades are scheduled for completion before year-end as part of the broader production growth strategy

Americas Gold & Silver Corporation (TSX: USA, NYSE American: USAS) operates as a growing North American precious metals producer focused on expanding production capabilities across its asset portfolio. The company maintains 100% ownership of the Galena Complex located in Wallace, Idaho, which serves as a cornerstone asset in its production growth strategy. Under new management leadership, Americas has implemented aggressive operational improvements aimed at substantially increasing production capacity while maintaining safety standards and cost discipline.

Operational Excellence Drives Early Project Completion

The completion of Phase 1 upgrades to the Galena Complex No. 3 Shaft represents a significant operational milestone for Americas Gold & Silver. The project finished four days ahead of the planned 14-day shutdown schedule, demonstrating the execution capabilities of the operational team and effective project management protocols.

The accelerated timeline reflects the company's strategic focus on operational efficiency improvements. Chairman and CEO Paul Andre Huet emphasized the significance of this achievement:

"I am very pleased to announce that the first phase of the Galena No. 3 Shaft upgrade has been completed ahead of schedule, which is a tremendous outcome for our operations. I would personally like to thank and congratulate our team on a very successful upgrade period which was completed in just 10 days versus a planned 14 days."

The early completion provides Americas with additional operational days that would otherwise have been lost to maintenance activities, potentially translating to increased production volumes and revenue generation during the current quarter.

Technical Specifications & Performance Metrics

The Phase 1 upgrades encompassed comprehensive improvements to critical shaft infrastructure components, including motor systems, lilies, braking mechanisms, and the introduction of automated hoist-control systems. These technical enhancements target specific performance bottlenecks that previously limited production throughput.

Current operational data demonstrates substantial performance improvements across key metrics. Hoisting speeds are projected to increase significantly from the existing 690 feet per minute baseline. Huet provided specific performance targets:

"Upon completion of the upgrades on the motor, lilies, brakes, and introducing hoist-control automation, we expect to increase skipping times from the current 690 feet per minute to approximately 1,200 to 1,400 feet per minute and increase our skipping capacity from approximately 40 tons per hour to approximately 100 tons per hour."

The company has already achieved measurable improvements in early operations following the upgrade completion. Initial performance data shows the system reaching 80 tons per hour capacity, representing a doubling of previous throughput capabilities.

Production Capacity Enhancement Strategy

The No. 3 Shaft upgrades form a central component of Americas' broader production expansion strategy at the Galena Complex. The increased hoisting capacity directly supports plans to scale long hole stoping operations, which require efficient material movement systems to optimize production workflows.

The technical improvements address fundamental infrastructure constraints that previously limited production scaling potential. By doubling the hourly tonnage capacity from approximately 40 tons to the current 80 tons per hour achieved, with targets reaching 100 tons per hour, the company has eliminated a key bottleneck in the production process.

Huet outlined the strategic importance of these capacity improvements:

"This will enable us to move a significantly larger amount of tons from our operation while we continue to set up the mine for increased long hole stoping next year."

The enhanced capacity provides operational flexibility to support expanded mining activities while maintaining efficient material handling workflows essential for sustained production growth.

Risk Mitigation Through Backup Systems

A critical component of the Phase 1 upgrades involves the installation of redundant equipment systems to reduce operational risks. The company now maintains a spare 2,250 hp hoist motor specifically for the primary No. 3 shaft operations, representing the first time such backup capacity has been available.

This redundancy addresses a significant operational risk factor that could previously result in extended production interruptions during equipment failures or maintenance requirements. Huet emphasized the risk mitigation benefits:

"Very importantly, we now have a spare 2,250 hp hoist motor for our primary No. 3 shaft for the first time, providing critical backup capacity and de-risking our mine plan."

The backup motor system enhances operational reliability and reduces the potential for unplanned production disruptions, supporting more predictable production forecasting and revenue generation capabilities.

Management Execution & Strategic Vision

The successful completion of Phase 1 upgrades reflects the execution capabilities of Americas' management team, particularly in identifying and addressing operational improvement opportunities. The current leadership team conducted comprehensive due diligence on the Galena Complex's production potential prior to implementing the upgrade strategy.

Huet described the strategic assessment process:

"During the due diligence period prior to the new management team joining Americas, our team recognized the potential to substantially increase production from the Galena Complex and identified shaft upgrades as a critical element to our success."

This systematic approach to operational improvements suggests a disciplined methodology for identifying and implementing value-enhancing projects across the company's asset portfolio. The ability to complete complex technical projects ahead of schedule while maintaining safety standards demonstrates operational competence that could translate to successful execution of future expansion initiatives.

Financial Performance & Cost Management

The early completion of Phase 1 upgrades provides positive indicators regarding the company's project management capabilities and cost control measures. Completing the project four days ahead of schedule likely resulted in reduced direct costs while minimizing production interruptions.

The operational team's ability to deliver projects "ahead of plan and under budget" as noted by management suggests effective cost discipline that could positively impact margins and cash flow generation. This execution track record becomes particularly relevant as the company pursues additional capital-intensive projects to support production growth objectives.

The doubled production capacity achieved through the upgrades should translate to improved operational leverage, allowing the company to generate higher revenues from existing infrastructure investments without proportional increases in fixed costs.

Phase 2 Implementation Timeline

Americas plans to complete Phase 2 of the No. 3 Shaft upgrade project before the end of 2025, representing the final component of the comprehensive shaft improvement initiative. While specific technical details of Phase 2 have not been disclosed, the timeline suggests continued momentum in the operational improvement strategy.

The completion of both phases within the current fiscal year would position Americas to realize the full production capacity benefits from the shaft upgrades during 2026 operations. This timing aligns with the company's plans to implement expanded long hole stoping operations, creating operational synergies between the infrastructure improvements and mining methodology enhancements.

Huet confirmed the Phase 2 timeline:

"We look forward to updating our stakeholders on the second phase of the No. 3 Shaft upgrades before the end of the year."

Safety & Operational Standards

Throughout the upgrade process, Americas maintained its commitment to safety standards while executing complex technical modifications to critical infrastructure systems. The company emphasized that operational improvements continue alongside maintaining safety protocols and meeting production targets.

The management team's focus on "increasing the safety and efficiency of the Galena mine" demonstrates recognition that sustainable production growth requires maintaining robust safety standards alongside operational improvements. This balanced approach reduces the risk of safety-related production interruptions while supporting long-term operational sustainability.

The successful execution of technical upgrades without safety incidents provides confidence in the company's ability to manage complex operational modifications while maintaining workforce safety standards essential for sustained operations.

For Investors

The successful completion of Phase 1 shaft upgrades at the Galena Complex demonstrates Americas Gold & Silver Corporation's operational execution capabilities and commitment to systematic production capacity expansion. The project's early completion timeline, combined with immediate achievement of doubled production capacity, provides tangible evidence of management's ability to identify and implement value-enhancing operational improvements.

The technical upgrades address fundamental infrastructure constraints that previously limited production scaling potential, positioning the company to support expanded mining operations through 2026 and beyond. The installation of backup systems reduces operational risks while the enhanced capacity provides operational flexibility to optimize production workflows.

For investors evaluating Americas Gold & Silver Corporation, the Galena Complex upgrades represent a clear demonstration of management's strategic vision and execution capabilities. The combination of accelerated project timelines, immediate performance improvements, and systematic approach to operational enhancements suggests a disciplined methodology for creating shareholder value through operational excellence. The completion of Phase 2 upgrades before year-end will provide additional data points to assess the company's ability to sustain this execution track record across its broader production growth strategy.