Connected Mines Give Americas Gold & Silver a Silver Valley Consolidation Edge

• Silver Valley mines share the same geological system and connect underground, so neighbors can use existing mill capacity and share overhead.
• Americas Gold & Silver consolidated 100% of the Galena Complex on December 19, 2024, after operating it with a 60% interest while Eric Sprott held the other 40% at the asset level.
• The company closed the acquisition of the fully permitted Crescent Mine, 9 miles from Galena, on December 12, 2025, with potential to add about 1.5 million ounces of silver per year.
• The management team applied the same approach at Klondex, which Hecla later acquired, and at Karora, which later merged with Westgold. 
• Management says it will keep consolidating assets that make industrial logic sense.

Silver Valley's Mines Are Connected Underground

Mines across Idaho's Silver Valley work the same geological system, and many connect underground. Mining has taken place in the district since 1893, and ownership has historically been split among multiple fractional holders.

The Galena Complex sits in the district's center. Its neighbors include the Lucky Friday mine, the Bunker Hill mine about 30 kilometers to the west, and the Sunshine project, which is restarting under Electrum. Connected workings let one operator route ore to the nearest available mill and spread overhead across more production.

Full Ownership of Galena Opens the District Platform

Americas Gold & Silver (TSX: USA | NYSE American: USAS) operated the Galena Complex with a 60% interest, while Sprott held 40% at the asset level. The company announced the purchase of Sprott's interest on October 9, 2024, and closed it on December 19, 2024, for US$10 million in cash, 85 million shares, and a 36-month capped silver stream.

The complex runs 4 shafts, named Coeur, No. 3, Galena, and Caladay, and 2 mills. The Coeur mill is rated at about 500 tons per day and is in temporary care and maintenance, and the Galena mill is rated at about 750 tons per day. The Galena Complex carries a measured and indicated resource of 87.9 million ounces of silver at 501 g/t, an inferred resource of 105.7 million ounces at 498 g/t, and proven and probable reserves of 16.3 million ounces at 482 g/t.

Management is targeting an expansion of the Galena mill to 1,200 tons per day. New flotation cells, costing about US$4.8 million, are scheduled for delivery in the fourth quarter of 2026, with crushing and milling upgrades to accompany them. Management is also targeting hoisting capacity of 1,350 tons per day.

Crescent Puts Spare Mill Capacity to Work 9 Miles Away

Americas announced the Crescent Mine acquisition on November 13, 2025, for about US$65 million in cash and shares, and closed it on December 12, 2025. Crescent is fully permitted and is 9 miles from Galena. The mine has about 12,000 feet of existing underground drifts, and recovery rates reach about 95% in sulfide zones.

Crescent is designed to use spare milling capacity at the Galena and Coeur mills. Management targets savings from shared equipment and general and administrative efficiencies, and it sees potential to add about 1.5 million ounces of silver per year. Power costs at Crescent have fallen from about US$0.55 to about US$0.07 per kilowatt-hour, and 11 pieces of underground equipment are operational.

Crescent ore is targeted to reach the mill in 2027. Drilling at Crescent returned 1,891 g/t silver over 1.3 meters and confirmed high-grade mineralization within the Alhambra and South Veins.

Klondex & Karora Show the Playbook Americas Has Run Before

The team behind Americas ran this approach at Klondex Mines, where the Midas complex and the Hollister mine added 3 mines and 2 mills and lifted production from almost nothing to about 200,000 ounces per year before Hecla acquired the company in 2018 for C$740 million. At Karora Resources, the Higginsville Complex, the Spargos mine and the Lakewood mill took production from about 60,000 ounces per year to more than 200,000 ounces per year before the company merged with Westgold in 2024.

Management describes the approach as acquiring assets with regional synergies and real industrial logic, where the combined operation is worth more than the parts in isolation. Director Tara Hassan adds a benchmark from SilverCrest Metals, where she led the US$1.5 billion sale to Coeur Mining.

Oliver Turner, Executive Vice President of Corporate Development at Americas, described how the company approaches mergers and acquisitions in the Silver Valley after Crescent.

"We will continue to consolidate assets that make industrial logic sense, or we will be consolidated. The idea is to build a highly profitable business, which we're ramping up towards right now, that becomes unignorable to larger, let's call them fish in the industry."

The Investment Thesis for Americas Gold & Silver

• Full ownership of the Galena Complex lets Americas Gold & Silver run the district's central operation and capture the full benefit of every operating improvement it makes.
• The fully permitted Crescent Mine is 9 miles from Galena and is designed to use processing capacity the company already owns, which gives investors a route to potential silver production growth.
• Savings from shared equipment and general and administrative efficiencies give the company a cost lever that a stand-alone mine does not have.
• Power costs at Crescent have fallen from about US$0.55 to about US$0.07 per kilowatt-hour, and 11 pieces of underground equipment are operational, which shows the integration is already delivering results.
• The management team behind Klondex and Karora has already taken companies through a sale to Hecla for C$740 million and a merger with Westgold, which gives investors a record of building value through regional consolidation.
• Management's stated plan is to keep consolidating assets that make industrial logic sense, which gives investors a repeatable growth path with further assets to pursue beyond Crescent.

Silver Valley mines have historically been fractionally owned, and Americas Gold & Silver now owns Galena and Crescent in the district. With Galena fully owned, Crescent added, and mill capacity expanding, the company has a clear sequence for turning connected ground into shared infrastructure and production growth. Each step builds on the last, from owning the central complex to a permitted neighbor 9 miles away and a mill expansion that gives that neighbor's ore a place to go.

TL;DR

Americas Gold & Silver owns 100% of the Galena Complex and has added the fully permitted Crescent Mine 9 miles away. The company plans to use spare mill capacity, share costs across connected mines, and repeat the consolidation approach its management team used at Klondex and Karora.

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