The Cosalá Operations have been shut down for more than 17 months because of an illegal blockade. (Photo: Americas Silver and Gold)
Americas Gold and Silver Corp. signed an agreement with the Mexican Ministries of Economy, Interior and Labor committing to a reopening of the Cosalá Operations in Sinaloa, Mexico, which has been shut down for more than 17 months because of an illegal blockade.
After the long period of denied access, the agreement contemplated immediate right to possession of the property with a joint inspection coordinated by the Ministry of Labor so the mine can restart operations in a safe and sustainable manner. Following the inspection and company review, the company said it will provide a schedule for when it will return to normal operations at the mine and mill.
Once production can be initiated, it is anticipated the current higher silver prices will allow the company to target the higher-grade silver ores in the Upper Zone of San Rafael and develop the silver-copper EC120 project. Mining these areas of the Cosalá Operations is expected to significantly increase silver production to more than 2.5 million ounces (oz) of silver per year in the years following the restart. Coupled with the exploration success at the Galena Complex in Idaho, where the company is targeting to reach peak historical annual production levels of approximately 5 million oz/y, the company said it expects to significantly increase silver production over the next few years.
“Through extensive deliberations with senior Mexican ministers, certain union representatives, the will of our workers and the community and the president of Mexico, the agreement is a significant step to ensure the long-term stability of the operations by its signatories,” Americas Gold and Silver President and CEO Darren Blasutti said. “I would like to personally thank all parties involved, including our employees and representatives in Mexico, the Mexican and Sinaloa governments, the people of Cosalá, and the organizers of numerous petitions and rallies who have all played important roles in providing a long-term solution for the benefit of the Cosalá Operations. The company is eager to get the operation ramped-up for all to benefit from the current strong silver, zinc and lead prices.”
