Americas Gold & Silver: Silver Valley Mill Expansion Targets 1,200 Tonnes Per Day

• Americas Gold & Silver is targeting an increase in Galena mill capacity from approximately 750 to 1,200 tonnes per day by year-end 2026 through crushing, flotation and ball-mill upgrades.
• No. 3 Shaft upgrades increased sustained hoisting rates from approximately 42 to 85 tonnes per hour, while long-hole stoping has reached up to approximately 200 tonnes per shift versus 50 tonnes per shift under conventional mining in 2024.
• The fully permitted Crescent Mine is located nine miles from Galena and could provide additional silver-copper-antimony feed to the existing processing infrastructure.
• Management is targeting 3.2 to 3.6 million silver ounces in 2026 at $30 to $35 per ounce all-in sustaining costs (AISC), compared with first-half AISC of $36.92 per ounce.
• The company must demonstrate sustained ore supply, progress toward the 1,200-tonne-per-day mill target, lower unit costs, Crescent development, and the economics of its proposed antimony-processing operation.

What Has Happened

Americas Gold & Silver Corporation (TSX: USA | NYSE American: USAS) is targeting additional silver production from Idaho's Silver Valley through shaft modernization, mill expansion, and development of the nearby Crescent Mine. The company plans to increase Galena mill capacity from approximately 750 to 1,200 tonnes per day by year-end 2026, providing additional processing capacity for its Idaho ore supply. 

The second-quarter results reported consolidated net revenue of $46 million, up 71% from $27 million a year earlier, primarily due to higher realized metal prices. Revenue for the six months ended June 30 reached $114 million, while Galena's quarterly silver output declined to approximately 328,000 ounces from 420,000 ounces following shaft work and an electrical fire. Galena cash costs rose to $35.26 per ounce sold from $23.39, reflecting fewer ounces sold and greater contractor use. 

Shaft Capacity & Mechanized Mining

The second-quarter results release reports that Galena's No. 3 Shaft upgrades increased sustained hoisting rates from approximately 42 to 85 tonnes per hour, with peaks of 105 tonnes per hour. A new braking system accommodates the higher speeds enabled by the upgraded motor, increasing the rate at which material can reach the surface.  The company compares conventional mining at approximately 50 tonnes per shift in 2024 with long-hole stoping at up to approximately 200 tonnes per shift in 2026, describing a 300% productivity improvement. It also reports thirteen long-hole panels mined to design widths, providing operating evidence for the method's wider application. 

Management is targeting a mining-method mix of 70% long-hole stoping and 30% underhand cut-and-fill, supported by a new paste-fill plant. The plant is intended to shorten filling cycles, supporting the movement of additional stopes into production. 

Crescent Feed & Existing Processing Infrastructure

The company values the December 12, 2025 Crescent acquisition at approximately $65 million, comprising $20 million cash and approximately 11.1 million shares valued at $45 million. It describes Crescent as fully permitted and located nine miles from Galena, with silver-copper-antimony feed offering a potential additional source of production for the existing processing infrastructure. 

Crescent has approximately 12,000 feet of underground drifts, with grid power and communications extended to all three adits and compressed air installed for drilling. The presentation also reports eleven underground equipment units brought into operation to support development. 

At Galena, management is targeting mill capacity of 1,200 tonnes per day through crushing and flotation upgrades and connection of an existing additional ball mill. The company identifies delivery of new flotation cells in the fourth quarter of 2026; delivery, installation and demonstrated throughput remain distinct milestones for assessing the expansion. 

Near-Mine Drilling, Resource Conversion & Antimony Processing

Americas Gold & Silver has identified multiple high-grade vein targets, including a newly discovered vein complex approximately 25 metres from existing infrastructure. In 2026, management is targeting approximately 64,000 metres of infill and exploration drilling across its Idaho and Mexico operations to test additional mineralisation and support resource conversion.

Further exploration opportunities extend down dip beneath existing development at Galena and Crescent. However, these remain drilling targets rather than demonstrated additions to mine life. The company’s presentation states that mineral resources have not demonstrated economic viability and may not ultimately convert into mineral reserves.

Separately, Americas Gold & Silver’s 51%-owned joint venture (JV) with US Antimony is targeting a domestic antimony-processing business using Galena’s existing site and feedstock. The proposed operation could generate downstream processing margins and third-party processing revenue, extending its potential value beyond mine production.

Capital Commitments & Guidance Assumptions

The August 14 second-quarter results release reports settlement of approximately $76 million in variable precious-metal obligations through share issuance and gold delivery. This removes future metal-price valuation adjustments on the settled instruments. The release also reports $88.9 million cash at June 30 and full-year capital guidance of $90 million to $120 million; remaining expenditure and operating cash requirements will determine funding coverage. 

Management is targeting 3.2 million to 3.6 million silver ounces in 2026 at all-in sustaining costs (AISC) of $30 to $35 per ounce sold, compared with first-half AISC of $36.92. AISC is a measure not defined under International Financial Reporting Standards (IFRS); it includes by-product credits and excludes non-cash share-based payments and derivative settlements.  The guidance assumes planned mining rates and costs, timely permits, available personnel and equipment, and access to capital. 

What to Watch Next

The principal operating test is whether Galena's higher hoisting rates, wider use of long-hole stoping and targeted mill expansion translate into additional silver output at lower unit costs. Flotation-cell delivery in the fourth quarter of 2026 and progress towards 1,200 tonnes per day provide measurable checkpoints, while Crescent development determines the availability of supplementary feed.

The remaining execution tests are sustained ore supply, progress towards annual cost guidance and demonstrated antimony-processing economics. Exploration results must support resource classification before underpinning additional production commitments. 

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