Americas Gold & Silver's Cosalá Drill Results: 6 Things You Need to Know

Project Overview

Americas Gold & Silver Corporation (TSX: USA | NYSE American: USAS) is a North American precious metals and antimony producer operating the Cosalá Complex in Sinaloa, Mexico, and the Galena Complex and Crescent Mine in the Coeur d'Alene Mining District of Idaho. The company has reported infill drill results from its Cosalá Complex in Mexico, returning silver grades up to 5 times higher than the current resource model - a performance gap the company states represents significant upside potential to the future mine plan. Because all 14 drill holes were completed after the October 31, 2025, Mineral Resource and Reserve (MR&R) cutoff date, none of the results are reflected in the current reserve statement. The company is targeting integration into an optimised mine plan for the second half of 2026.

1. The Drill Results: What the Intercepts Show

Infill drilling across the San Rafael Upper, 120 Upper, and 120 Lower zones returned silver grades averaging 2 to 3 times the previously modelled inferred mineral resource (MR) grades, with the highest intercept exceeding the modelled grade for that section by more than 5 times.

Highlight intercepts are reported as estimated true widths (source: Americas Gold & Silver press release, June 2026). At the San Rafael Upper zone, the headline intercept returned 599.8 grams per tonne silver and 0.83% copper over 14 metres, against a modelled grade of approximately 110 grams per tonne for that section. A second intercept from the same zone returned 509.7 grams per tonne silver and 0.43% copper over 10 metres. At the 120 Lower zone, notable results include 388 grams per tonne silver and 0.98% copper over 33.7 metres, and 342.9 grams per tonne silver and 0.85% copper over 45 metres.

The 14 drill holes also confirmed modeled Mineral Resource thickness across all three zones. The company states the results are currently being incorporated into an optimised mine plan targeting the second half of 2026. No revised mine plan has been published.

2. The Current Reserve Statement Excludes All 14 Holes

All 14 drill holes were completed after the October 31, 2025 MR&R cutoff date. The current Proven & Probable Reserve at Cosalá stands at 9,553 thousand ounces of silver at 156 grams per tonne - a figure that does not reflect the grade performance now being reported.

The March 30, 2026, MR&R statement also carries a Measured & Indicated resource of 18,691 thousand ounces at 119 grams per tonne at Cosalá. The company states the newly reported infill results represent upside potential to this statement. The company has not specified a disclosure date for any updated MR&R statement.

3. Infrastructure Proximity Connects the Grades to the Mine Plan

The company states all 14 reported intercepts are directly adjacent to existing mine infrastructure at Cosalá, and that the results are currently being incorporated into an optimised mine plan heading into the second half of 2026.

The optimised mine plan targeting the second half of 2026 will be the first document to assign production assumptions to the grade performance now being reported. No disclosure date has been specified by the company.

4. Cosalá Produced a Record 1.2 Million Ounces of Silver in 2025 at US$26.52 per Ounce All-In Sustaining Cost

The Cosalá Complex delivered 1.2 million ounces of silver in 2025 at an all-in sustaining cost (AISC) of US$26.52 per silver ounce, against the company's 2026 consolidated AISC guidance of US$30 to $35 per ounce.

The Cosalá Operations entered commercial production at the EC120 Mine at approximately 1,550 tonnes per day during 2025, with drilling planned to extend mine life at both San Rafael and EC120. First-quarter 2026 consolidated silver production totalled 786.9 thousand ounces at an AISC of US$34.12 per ounce, against full-year guidance of 3.2 to 3.6 million ounces - representing approximately 30% growth over 2025 production of 2.65 million ounces.

The company's 2026 capital investment guidance totals US$90 to $120 million, comprising US$30 to $40 million in sustaining capital, US$60 to $80 million in growth capital, and US$15 to $20 million in exploration.

5. The 2026 Drilling Program Is the Largest in Company History

The approximately 64,000-metre 2026 drilling program spans the Galena Complex, Crescent Mine, and Cosalá Operations - the largest campaign in company history- and is being executed against a stated management target of returning consolidated silver production to 5 million ounces per year, up from 2025 output of 2.65 million ounces.

The 14 Cosalá holes represent drilling conducted from the fourth quarter of 2025 through the first quarter of 2026. The broader 2026 program also includes exploration and infill drilling at the Galena Complex and Crescent Mine, with additional results disclosed in prior press releases.

Executive Vice President of Corporate Development of Americas Gold & Silver Corporation, Oliver Turner, outlined the production target:

"The plan is over the next couple of years to get back to that 5 million a year mark. And then we're going to see how much bigger we can get from there."

6. Seven Geophysical Targets at Cosalá North Add to the Exploration Pipeline

The company has identified seven major induced polarisation and magnetic anomaly trends at Cosalá North and conducted initial drilling at the El Alacrán target, returning 27.6 metres of 69 grams per tonne silver, 0.2 grams per tonne gold, and 0.2% copper 

The Cosalá Operations have been underexplored since the acquisition of Scorpio Mining in 2014. The seven Cosalá North targets were identified through a reinterpretation of historic geophysical data. Initial drilling at El Alacrán has been completed. The company stated that 70% of silver is a byproduct from other mines, with a significant portion from copper mines that are now constrained by sulfuric acid supply. 

Turner described silver supply as inelastic and noted that silver has been added to the US critical minerals list:

“Which means that primary silver producers such as ourselves are producing an increasingly critical now on the US critical minerals list and increasingly scarce metal that's going to be required across all these applications"

Key Takeaways for Investors

• The current Cosalá Proven & Probable Reserve grade is 156 grams per tonne of silver. Infill drilling is returning grades of up to 599.8 grams per tonne in the same zones. No revised mine plan or reserve statement reflecting this drilling has been published.
• All 14 drill holes sit outside the March 30, 2026, Mineral Resource and Reserve statement due to the October 31, 2025, cutoff date. The company has not specified a disclosure date for any updated statement.
• The company states all intercepts are directly adjacent to existing mine infrastructure and are being incorporated into an optimised mine plan targeting the second half of 2026.
• Cosalá produced 1.2 million ounces of silver in 2025 at an all-in sustaining cost of US$26.52 per ounce against full-year 2026 consolidated guidance of 3.2 to 3.6 million ounces at US$30 to $35 per ounce all-in sustaining cost.
• The approximately 64,000-metre 2026 drilling program targets a return to 5 million ounces of annual silver production. The 14 Cosalá holes form part of that program, with prior Galena and Crescent results disclosed in separate press releases.
• Seven geophysical anomaly trends have been identified at Cosalá North. Initial drilling at El Alacrán has taken place, with targets identified through the reinterpretation of historical geophysical data.

The Bottom Line

The Cosalá infill results establish a grade differential between what the current reserve model carries and what the company is now intersecting in the ground. The March 30, 2026, MR&R statement does not reflect this drilling. The second-half 2026 mine plan is the first disclosed milestone at which these results will be assigned production assumptions.