Americas Gold & Silver's Cosalá Drilling Returns Grades Up to 5 Times the Resource Model

• Americas Gold & Silver Corporation reported infill drill results from the Cosalá Complex that returned silver grades 2 to 3 times higher than the current resource model across the San Rafael Upper, 120 Upper, and 120 Lower zones.
• The highlight intercept returned 14 meters grading 599.8 grams per tonne silver and 0.83% copper in an area originally predicted to hold 110 grams per tonne silver, representing more than 5 times the modelled grade in that block.
• The 14 reported drill holes were completed after the October 31, 2025, cutoff date and were excluded from the consolidated mineral resource and reserve statement published March 30, 2026, which reported 115.7 million ounces of measured and indicated (M&I) silver resources.
• All newly reported high-grade intercepts are located directly adjacent to existing underground mine infrastructure at the Cosalá Complex, which the company is incorporating into its optimised mine plan process in the second half of 2026.
• The company is incorporating these drill results into an optimised mine plan targeting completion in the second half of 2026, as part of its 64,000-meter drilling campaign, the largest in company history.

What Has Happened

Americas Gold & Silver Corporation (TSX: USA | NYSE American: USAS) published results from 14 infill drillholes completed during the fourth quarter of 2025 and the first quarter of 2026 at the Cosalá Complex in Sinaloa, Mexico. The program targeted three zones, San Rafael Upper, 120 Upper, and 120 Lower and, in each case, returned silver grades that materially exceeded the current mineral resource model's predictions for those blocks. The program is consistently averaging 2 to 3 times the previously reported inferred mineral resource grades across all 14 holes.

These holes were drilled after the October 31, 2025, mineral resource cutoff, which means none of their results appears in the 115.7 million ounces of measured and indicated silver resources reported in the company's March 30, 2026, consolidated mineral resource and reserve statement. The grade upside documented on June 1, 2026, is not reflected in that statement. All intercepts are immediately adjacent to existing underground infrastructure and are being incorporated into an optimised mine plan targeting completion in the second half of 2026.

Re-Rating the Resource Model

Mineral resource models are constructed from drill data available at a fixed cutoff date. Data generated after that date does not enter the model until the next update. The Cosalá resource used data through October 31, 2025. The 14 holes reported on June 1, 2026, post-date that cutoff and are absent from the current estimate.

The practical consequence is a verifiable gap between what the current resource model predicts and what the drill bit is finding. The highlight intercept returned 599.8 grams per tonne silver in a block; the model assigned 110 grams per tonne silver, more than 5 times the predicted grade over a 14-meter true width. A second intercept returned 10 meters at 509.7 grams per tonne silver and 0.43% copper. In the 120 Lower zone, a 45-meter intercept graded 342.9 grams per tonne silver and 0.85% copper. The 45-meter width in particular demonstrates that the grade outperformance is not confined to a narrow high-grade pod, which affects the tonnage-grade relationship for that portion of the resource.

The valuation implication is direct. Americas Gold & Silver traded at 0.60 times the average broker-research net asset value (NAV) per share as of May 2026. That multiple is calculated against a resource model that predates the June 1, 2026, drill grades. The optimised mine plan, targeting completion in the second half of 2026, is the first formal document to incorporate these intercepts into the production sequence.

The Economics of Infrastructure Proximity

A key aspect of the announcement is that all reported high-grade intercepts are directly adjacent to existing underground infrastructure at the Cosalá Complex. The company has stated these intercepts are currently being incorporated into the optimised mine plan process.

The Cosalá Operations reported a 2025 all-in sustaining cost (AISC) of US$26.52 per silver ounce produced. That figure was generated from a mine plan that did not include these higher-grade blocks. The current proven and probable reserve grade at Cosalá is 156 grams per tonne silver. The degree to which these highlighted high-grade intercepts translate into the mine plan is not yet known and will only be resolved when the optimised mine plan is published.

One execution consideration applies: the sources state only that these results are being incorporated into the mine plan process. The company did not detail how grades would be assigned to the production sequence. The optimised mine plan, targeting completion in the second half of 2026, is the mechanism through which that question will be answered.

Validating the Aggressive 2026 Strategy

The 64,000-meter drilling campaign that Americas Gold & Silver is executing in 2026 is the largest in the company's history. The program spans both the Galena Complex in Idaho and the Cosalá Complex in Mexico. The June 1, 2026 announcement shows that infill drilling at an operating mine is producing grade upgrades in blocks adjacent to existing production infrastructure.

The Galena Complex in Idaho has produced high-grade vein intercepts from the same campaign earlier in 2026, including the 43L-TJ Vein Complex discovery. The Cosalá results confirm that the grade upgrade pattern applies across both operating jurisdictions. Taken together, the two programs indicate that the company's stated mineral resources, last updated as of October 31, 2025, offer substantial upside potential for future mine plans across its portfolio.

Executive Vice President of  Americas Gold & Silver, Oliver Turner, described the relationship between capital deployment and financial output:

"We've got a huge list of projects that we're working on, all of them designed in 2025. We're executing on them right now, and we're already seeing some of that starting to hit the bottom line." 

Turner also framed the broader investment case: 

“What they see in the story right now is a management team that's done this at two businesses before, and actually did one in a bear market and one in, I would call it, sort of a flat-to-side to slightly up market at Karora. And they have a strong growth profile ahead of them with a team they believe can execute. It's a value play currently, and it's all based in the Americas, which they view as a very low-risk jurisdiction.”

The Cosalá intercepts are one measurable output of that execution record, grade upgrades from an operating mine in blocks immediately adjacent to existing infrastructure.

What to Watch Next

The primary milestone is the release of the optimised mine plan for Cosalá, which management has stated is targeting completion in the second half of 2026. That document outlines the mechanism by which the company will incorporate these new intercepts. Investors can use the current Cosalá reserve grade of 156 grams per tonne silver and the 2025 AISC of US$26.52 per silver ounce as the baseline against which to measure any revision.

The second set of milestones continues the 64,000-meter campaign. Additional results from the ongoing resource conversion drilling program remain a key catalyst, as do results from the seven geophysical targets identified in the Cosalá North area. The El Alacrán discovery, which returned 27.6 meters at 69 grams per tonne silver in its first hole, is also advancing. Each release of results will either expand or define the spatial boundaries of the grade upgrade identified on June 1, 2026, and will indicate whether the current 18.7 million ounces of measured and indicated silver resources at Cosalá carry further conversion upside.

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