U.S. Silver & Gold provides second quarter production update
14.07.2014 | CNW
TORONTO, July 14, 2014 /CNW/ - U.S. Silver & Gold Inc. (TSX: USA, OTCQX: USGIF) ("U.S. Silver & Gold" or the "Company") today announced second quarter production figures for its Galena Mine Complex in Idaho.Highlights
- Production of approximately 521,000 silver ounces and 650,000 silver equivalent ounces1 for the second quarter of 2014, at a silver cash cost of $12.31 per ounce and an all-in sustaining cost of $15.36 per ounce.
- Extensive cost-cutting initiatives and productivity improvements implemented over the last year delivered reductions of 25% in cash costs and 35% in all-in sustaining costs year-over-year.
- Silver, lead and copper production increased by 35%, 100% and 22% respectively compared with Q1, 2014 and silver equivalent production rose by 41%.
- The Company is on-track to deliver approximately 2.0 – 2.4 million silver ounces in 2014 at cash costs of $14.50 – $15.50 per ounce and all-in cash costs of $18.00 – $19.00 per ounce.
- A collective bargaining agreement was ratified by workers at the Galena Complex on June 12, 2014, which will be in effect until June 2017. The agreement contains economic concessions from the bargaining unit that will be reviewed in June 2016.
- As of June 30, 2014, the Company's cash balance totaled approximately $7.2 million
The Company expects to release its second quarter financial results on August 13, 2014.
"This quarter's operating results follow a year of sacrifice and hard work that we undertook to restructure the Galena Complex and allow us to be profitable in the current lower price environment," said Darren Blasutti, President and CEO of U.S Silver & Gold Inc. "Since Q3, 2012 we have reduced cash costs by almost 40% and lowered all-in sustaining costs by roughly 55%. We believe these results are not only sustainable but, we see them as benchmarks we can improve on going forward. We will continue to transition from low tonnage, narrow, silver/copper production to wider, more profitable high tonnage silver/lead stopes for the remainder of the year."
Galena Complex Second Quarter Production Details
The Galena Complex produced 520,723 ounces of silver during the second quarter of 2014 at an average grade of 13.5 ounces per ton and a cash cost of $12.31 per ounce of silver. Production for the quarter rose by 35% as stopes that had been undergoing planned sand cycles during the first quarter became available and staff transitions from silver/copper stopes to wider, silver/lead stopes were completed. Broad cost-cutting initiatives implemented over the last 12 months continued to benefit the bottom line. Cash costs fell 34% compared with the first quarter of 2014 and 25% year-over-year; while, all-in sustaining costs were reduced by 36% quarter-over-quarter and 35% year-over-year.
| Table 1 Galena Complex Production Highlights | |||||
| Q2 2014 | Q1 2014 | Change | Q2 2013 | Change | |
| Processed Ore (tons milled) | 40,166 | 38,646 | +4% | 58,585 | -31% |
| Silver Production (ounces) | 520,723 | 385,503 | +35% | 629,227 | -17% |
| Silver Grade (ounces per ton) | 13.49 | 10.45 | +29% | 11.14 | +21% |
| Cash Costs ($ per ounce silver) | $12.31 | $18.64 | -34% | $16.41 | -25% |
| All-in Sustaining Costs ($ per ounce silver) | $15.36 | $23.95 | -36% | $23.65 | -35% |
| Lead Production (pounds) | 2,040,198 | 1,020,285 | +100% | 2,636,089 | -23% |
| Copper Production (pounds) | 215,302 | 176,825 | +22% | 268,392 | -20% |
Quality Assurance / Quality Control ("QA/QC")
U.S. Silver & Gold maintains a QA/QC Program for all assays, including the use of standards, blanks and duplicates. All QA/QC results are routinely evaluated using a program of QA/QC monitoring. Details of the program are provided in the Company's NI 43-101 compliant Technical Report on the Galena Project dated March 22, 2013.
About U.S. Silver & Gold Inc.
U.S. Silver & Gold is a silver and gold mining company focused on growth from its existing asset base and execution of targeted accretive acquisitions. It owns and operates the Galena Mine Complex in the heart of the Silver Valley/Coeur d'Alene Mining District, Shoshone County, Idaho which produces high-grade silver and is the second most prolific silver mine in U.S. history, delivering over 200 million ounces to date. The Caladay Zone is being evaluated for bulk mining development. U.S. Silver & Gold also owns the Drumlummon Mine Complex in Lewis and Clark County, Montana.
Mr. Daren Dell, Vice President, Technical Services and a Qualified Person under Canadian Securities Administrators guidelines, has approved the applicable contents of this news release.
For further information please see SEDAR or www.us-silver.com.
Cautionary Statement Regarding Forward Looking Information:
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, the Company's expectations intentions, plans, and beliefs with respect to, among other things, the Galena Complex and the Drumlummon Mine. Often, but not always, forward-looking information can be identified by forward-looking words such as "anticipate", "believe", "expect", "goal", "plan", "intend", "estimate", "may", and "will" or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions, or statements about future events or performance. Forward-looking information is based on the opinions and estimates of the Company as of the date such information is provided and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward looking information. This includes the ability to develop and operate the Galena and Drumlummon properties, risks associated with the mining industry such as economic factors (including future commodity prices, currency fluctuations and energy prices), failure of plant, equipment, processes and transportation services to operate as anticipated, environmental risks, government regulation, actual results of current exploration activities, possible variations in ore grade or recovery rates, permitting timelines, capital expenditures, reclamation activities, social and political developments and other risks of the mining industry. Although U.S. Silver & Gold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Readers are cautioned not to place undue reliance on such information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific those contribute to the possibility that the predictions, forecasts, and projections of various future events will not occur. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
1 Silver equivalent calculation is based on prices of $20 per ounce silver, $0.95 per pound lead and $3.00 per pound copper.
Contact
U.S. Silver & Gold Inc.
Darren Blasutti, President and CEO, 416-848-9503
Nicole Richard, Investor Relations, 416-848-9503