TORONTO, ONTARIO–(Marketwired – Sept. 13, 2016) – Americas Silver Corporation (TSX:USA)(OTCQX:USAPF) (“Americas Silver” or the “Company”) is pleased to announce that it has received approval from its Board of Directors, to begin construction on its 100% owned, San Rafael zinc-lead-silver project within the Cosalá district of Sinaloa, Mexico.
The San Rafael Project (the “Project”) is expected to deliver average annual production of 1.0 million ounces of silver, 50 million pounds of zinc and 20 million pounds of lead over a 6 year initial mine life at negative AISC based on current reserves and have a pre-tax IRR of greater than 80% using current silver, zinc and lead prices. The Project is a brownfield development that will utilize certain existing infrastructure at the Cosalá Operations and is expected to have an initial capital cost of approximately $20 million using current exchange rates. The Company targets commercial production in Q3 2017 following stockpiling of development ore starting in Q2 2017. The Project is permitted for development, road access has already been completed and portal construction has begun.