Business
U.S. Silver & Gold provides second quarter production and corporate update
CASH COSTS REDUCED BY 8%; PRODUCTION INCREASED BY 16% SMALL MINE PLAN IMPLEMENTED TO...
About this update from Americas Gold And Silver Corporation
[{"type":"text","content":"\n\n\nCASH COSTS REDUCED BY 8%; PRODUCTION INCREASED BY 16%\n\n\nSMALL MINE PLAN IMPLEMENTED TO FURTHER REDUCE COSTS \n\n\nTORONTO, July 16, 2013 /CNW/ - U.S. Silver & Gold Inc. (TSX: USA, OTCQX:\n USGIF) (\"U.S. Silver & Gold\" or the \"Company\") today announced\n production figures for its 100% owned and operating high-grade silver\n Galena Mine Complex in Idaho and its 100% owned high-grade gold and\n silver Drumlummon Mine in Montana.\n\n\nHighlights\n\n\nStrong second quarter consolidated silver production totalling 651,125\n ounces with gold production of 1,795 ounces (reflects only April and\n May as Drumlummon mine operations were suspended on May 31, 2013). \n This represents an increase in silver production of 23% compared with Q2, 2012, and a 9% increase over the previous quarter.\n Consolidated year-to-date production of 1.25 million silver ounces and\n 3,956 ounces of gold.\n\n\nGalena Mine Complex production of 629,227 silver ounces (a 19% increase\n over Q2, 2012). Cash cost of $16.41 per ounce silver, which represents an 8% reduction over Q2, 2012 and a\n 20% reduction over the previous quarter.\n\n\nAs previously announced, production at the Drumlummon Mine was discontinued at the end of May 2013. The mine has been put on care and\n maintenance pending an improvement in gold and silver prices.\n\n\nGiven the continued decline in the price of silver, Management will\n implement a Small Mine Plan (\"SMP\") during the third quarter to further\n protect the balance sheet. The SMP will increase the silver equivalent\n cut-off grade mined by 50% and lower cash and overall costs, which will\n decrease production and result in additional staff reductions.\n\n\nAs a result of the SMP, silver guidance for 2013 has been reduced to 2.1\n - 2.2 million ounces and production at the Galena Complex during the\n second half of the year is expected to be 850,000 - 950,000 ounces at a\n cash cost of $15.50 - $17.50 per ounce.\n\n\nHale Capital Partners has agreed to extend the term of the Company's\n $7.9 million debt for two years at an interest rate of 12%.  The cash\n balance as of July 2, 2013 was approximately $7.4 million.\n\n\nThe Company expects to release its second quarter financial results on\n Tuesday August 13, 2013.\n\n\n\"In just under a year we have implemented a number of initiatives to\n increa...