Americas Silver Corp fka USAPF

[Itsnotwhatyouthink]

lol.

Well here's the "whole story" as I've seen it, posted about it here for a long time, and now it's completely evident.

This announcement shows that the merger with RX was a COMPLETE AND HORRENDOUS SCREWJOB for USA stockholders. The ONLY thing RX brought to the table in the merger was the complete joke of a mine called Drumlummon. And now they are finally admitting it's crap, and basically are moving to give up on it...

" From August 13, 2012 to December 31, 2012 , Drumlummon milled 25,741 tons of ore at a grade of 0.23 ounces per ton gold and 2.70 ounces per ton silver to produce 5,691 ounces of gold and 59,184 ounces of silver at a by-product cash cost of $1,426.53 per ounce gold during this period.

Operations at the Drumlummon Mine were lower than expected during the fourth quarter of 2012 in both tons and grade as decisions were made to reassign mining personnel to enable development of diamond drilling stations for exploration on the Northstar and Frankie veins. This resulted in operations accessing smaller high-grade veins areas thereby decreasing production tonnage during the quarter. Ongoing ventilation challenges and weather-related air reversal inside the mine prevented miners from reaching active headings. A fan and air-door installation was excavated and installed in the Gunsinger Decline which along with other ventilation re-routing in the mine has alleviated the issues.

At the end of 2012, given the state of the capital markets in the precious metals industry, the Company decided to focus its capital resources on the drilling and development in the Caladay Zone at the Galena Complex. The Caladay Zone requires confirmation drilling, is close to existing infrastructure with both spare hoisting and spare milling capacity, requires no ore transportation for milling and no additional permitting. The exploration budget for the Drumlummon mine was reduced to $1 million for 2013 compared with $5.9 million in 2012 for the full calendar year. As a result, an impairment charge of $14.4 million to the carrying value of the Drumlummon Mine and related goodwill has been taken. The Drumlummon Mine will continue operating for as long as it can generate positive cash flow."

That doesn't appear to be too long with that ridiculous cash cost (which is probably a lot higher in reality).

WOW.