Americas Gold & Silver's Galena Shaft Upgrade: Why Doubling Hoisting Capacity Matters for the Mine's Next Phase

• Americas Gold & Silver completed Phase 2 of the Galena No. 3 Shaft upgrade, more than doubling hoisting capacity from approximately 42 short tonnes per hour to over 85 short tonnes per hour.
• The upgraded shaft is expected to provide approximately 1,350 tonnes per day of total hoisting capacity, supporting future underground mining growth.
• Management completed the project for approximately US$1.1 million, describing it as a highly capital-efficient infrastructure investment.
• The shaft upgrade removes a potential operational bottleneck and provides additional flexibility as underground development advances.
• The project forms part of a broader Galena improvement program that includes mining, infrastructure, equipment and exploration initiatives designed to support future production growth.

What Has Happened

Americas Gold & Silver Corp. (TSX: USA | NYSE American: USAS) has completed Phase 2 of the No. 3 Shaft upgrade at its Galena Complex in Idaho. The upgrade increased hoisting capacity by more than 100%, from approximately 42 short tonnes per hour to an average exceeding 85 short tonnes per hour, with rates as high as 105 short tonnes per hour achieved during testing. The upgraded shaft is expected to provide approximately 1,350 tonnes per day of total hoisting capacity. The project required a two-week extension beyond the planned shutdown period and was completed for approximately US$1.1 million, which management described as a highly capital-efficient investment.

Removing an Infrastructure Constraint

The No. 3 Shaft is a critical piece of infrastructure within the Galena Complex. It provides access for personnel and materials while also transporting mined material from underground workings to the surface. As underground mining activity expands, the ability to move material efficiently through the shaft system becomes increasingly important.

Mining growth is not determined solely by the size of a mineral resource. Underground operations depend on supporting infrastructure that can move personnel, equipment, ore and waste material through the mine. When hoisting systems become constrained, they can limit operational flexibility regardless of how much mineralisation is available for extraction.

The significance of the upgrade lies in its ability to remove a potential bottleneck within the mining cycle. Increasing hoisting capacity provides additional flexibility as underground development advances and creates the infrastructure foundation needed to support higher future mining rates. For investors, the key takeaway is that future investments in development, equipment and exploration can only translate into increased mining activity if the underlying infrastructure can accommodate those increases.

The Upgrade Fits Into a Broader Galena Improvement Program

The No. 3 Shaft project forms part of a wider operational strategy underway at the Galena Complex. Management has been implementing improvements across multiple areas of the operation, including mining methods, equipment fleets, underground infrastructure and exploration activities.

The objective is not simply to improve a single piece of infrastructure but to strengthen the overall operating platform. Infrastructure investments can improve access and material movement, while upgraded equipment and mining practices can support productivity improvements throughout the operation. Together, these initiatives are designed to improve operating efficiency and support future production growth.

Viewed in this context, the shaft upgrade represents an enabling investment. It increases the mine's capacity to handle future growth initiatives while supporting broader operational improvements across the complex.

Infrastructure First, Exploration Second

The company's growth plans extend beyond infrastructure improvements. Americas Gold & Silver has initiated what it describes as its largest-ever exploration drilling program, with approximately 64,000 metres planned across its Idaho and Mexico operations.

Exploration programs can expand geological understanding and identify potential future mining opportunities. However, infrastructure determines whether those opportunities can ultimately be developed efficiently. The sequencing is important. Additional mineralisation can create future mining inventory, while infrastructure upgrades provide the operational capacity needed to support future activity.

From that perspective, the No. 3 Shaft upgrade functions as a foundational investment. By increasing hoisting capacity before future growth initiatives are fully realised, management is addressing a key operational requirement that supports longer-term mine development.

How Cosalá Fits Into the Broader Company Strategy

While Galena's recent milestone centres on infrastructure, the company's Cosalá Operations in Mexico are advancing a different set of priorities. Recent work at Cosalá has focused on mine optimisation, commercial production from the EC120 mine and exploration activities designed to improve geological confidence and support future mine planning.

The distinction is important because the two operations are addressing different operational requirements. At Galena, management is focused on expanding infrastructure capacity and operational flexibility. At Cosalá, the emphasis has been on optimising mining areas, expanding geological understanding and integrating new information into future planning decisions. Discussing the company's longer-term growth objectives, President Oliver Turner stated:

"And as we said, 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."

What to Watch Next

The next major milestone at Galena will be how effectively the operation utilises the additional hoisting capacity now available through the upgraded No. 3 Shaft. Future operational updates should indicate whether the increased material movement capacity is supporting higher underground development rates, greater mining activity and broader operational improvements across the site. Investors can also monitor progress on Galena's wider optimisation initiatives, including the delivery of new flotation cells for the mill expected in the fourth quarter of 2026 and the development of an optimised mine plan targeted for the second half of 2026.

Additional exploration results from the company's approximately 64,000-metre drilling program will remain important. As drilling advances across both Galena and Cosalá, future results may provide further insight into how exploration, development and infrastructure investments are supporting the company's longer-term growth strategy.

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