Americas Silver Corp fka USAPF

[NYBob]

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 FURTHER REDUCE COSTS

TORONTO, July 16, 2013 /PRNewswire/ -

U.S. Silver & Gold Inc.
(TSX: USA, OTCQX: USGIF) ("U.S. Silver & Gold" or the "Company")
today announced production figures for its 100% owned and
operating high-grade silver Galena Mine Complex in Idaho and its
100% owned high-grade gold and silver Drumlummon Mine in Montana.

Highlights

Strong second quarter consolidated
silver production totalling 651,125 ounces with
gold production of 1,795 ounces (reflects only April and May as
Drumlummon mine operations were suspended on May 31, 2013).

This represents an increase in silver production of 23% compared
with Q2, 2012, and a 9% increase over the previous quarter.

Consolidated year-to-date production of 1.25 million silver
ounces and 3,956 ounces of gold.

Galena Mine Complex production of 629,227 silver ounces
(a 19% increase over Q2, 2012).

Cash cost of $16.41 per ounce silver, which represents
an 8% reduction over Q2, 2012 and
a 20% reduction over the previous quarter.

As previously announced, production at the Drumlummon Mine was
discontinued at the end of May 2013.
The mine has been put on care and maintenance pending an
improvement in gold and silver prices.

Given the continued decline in the price of silver,
Management will implement a Small Mine Plan ("SMP") during
the third quarter to further protect the balance sheet.

The SMP will increase the silver equivalent cut-off grade
mined by 50% and lower cash and overall costs, which
will decrease production and result in additional staff
reductions.

As a result of the SMP, silver guidance for 2013 has been reduced
to 2.1 - 2.2 million ounces and production at
the Galena Complex during the second half of the year
is expected to be 850,000 - 950,000 ounces at a cash cost of
$15.50 - $17.50 per ounce.

Hale Capital Partners has agreed to extend the term of the
Company's $7.9 million debt for two years at
an interest rate of 12%.

The cash balance as of July 2, 2013 was approximately
$7.4 million.

The Company expects to release its second quarter financial results on Tuesday August 13, 2013.

"In just under a year we have implemented a number of initiatives
to increase productivity and reduce costs,"
stated Darren Blasutti, President and CEO of U.S. Silver and Gold.

"While we have seen positive results including increases in
tonnage, production and average grade, as well as a decrease
in cash costs, the ongoing decline in the price of silver
required us to look for further cost savings in order to be
profitable and protect our balance sheet going forward.

We have therefore taken the difficult step of identifying
additional strategic measures that will allow us to cut costs
over the immediate and longer term while maintaining
the potential of the high-grade, lower cost Caladay Zone.

I deeply regret the impact this will have on our employees, who
have worked hard to help us achieve the progress we have made."

Galena Complex Second Quarter Production Details
The Galena Complex produced 629,227 ounces of silver during the
second quarter of 2013 at a grade of 11.14 ounces per ton and a
silver cash cost of $16.41 per ounce.

When compared with the second quarter of 2012, overall tonnage
for the quarter rose 10%, production increased 19%,
grade was up 8% and cash costs declined by 8%.

Table 1
Galena Production Highlights
Q2 2013 Q2 2012 Change
Processed Ore (tons milled) 58,585 53,438 +10%
Production (ounces) 629,227 527,899 +19%
Grade (ounces per ton) 11.14 10.27 +8%
Cash Costs $ 16.41 $ 17.81 -8%
Lead (pounds) 2,636,089 846,950 +211%
Copper (pounds) 268,392 237,827 +13%

Small Mine Plan
The Small Mine Plan focuses on increasing the grade mined to be
profitable at current silver prices.

Increasing grade will reduce the Company's operations.

The SMP will be implemented immediately, target both fixed and
variable costs and entail the following actions:

The number of operating stopes will be reduced from current
levels to approximately fifteen;

Staff at the Galena Mine Complex will be reduced from 351 to 225;

The Coeur Shaft and Coeur Mill will be put on care and
maintenance;

Further capital development and exploration reductions will be
made;

Levels 2800, 3000, 3200, 4300 and 5500 will be put on care and
maintenance;

Milling of both silver/copper and silver/lead ore will be
campaigned through the Galena Mill.

Although the SMP will result in reduced tonnage, the decrease in
revenue will be partially offset by an increase in grade.

Other Cost Reductions
In April 2013, as a result of the Company's cost control focus
and portfolio review, $12-14 million in exploration, capital
projects and capital development costs were cut from the 2013
Galena Complex budget.

In addition, corporate general and administrative costs were
reduced by $1 million.

Effective August 1, 2013, the CEO and Board of Directors
will take a voluntary 20% reduction in cash remuneration and
all members of the executive management team have agreed
to a 10% reduction.

Caladay Zone Update
Galena Complex personnel are actively working toward development
of the silver/copper Silver Halo area, which has the highest
grade potential and is close to existing infrastructure.

Drilling continues to confirm and expand new resources, and
development toward ore is occurring on the 4900 level.

First production from the Silver Halo is anticipated
by August 31, 2013 and management continues to target production
of 100 tons/day.

Once initial production has been established, focus will shift to
the closest, high-grade silver/lead blocks in
the 49-390 resource area of the Caladay Zone.

Underground drilling to further expand the resources
on the 4900 Level in the Silver Halo and
the Caladay Zone continued during the second quarter of 2013.

Both areas returned impressive widths of potentially ore-grade
mineralization (see Tables 2 and 3 below).

All reported drill holes were completed from one of two drill
stations on the 4900 Level and were drilled to the north of and
below the 4900 Level drift. Some of the intersections for
the Silver Halo begin within 2 to 5 feet of the drill station
which makes this mineralization readily accessible from the
existing infrastructure.

Publication of the Caladay Zone Preliminary Economic Assessment
has been deferred due to recent volatility in the price of
silver.

Table 2
Recent Silver Halo (Silver-Copper Mineralization)
Hole No. From
(ft) To
(ft) Width
(ft) Ag
(oz/ton) Cu
(%) Ag
Equivalent
(oz/ton) Ag
Equivalent
(g/t)
49-284 182.2 194.6 12.4 12.14 0.15 12.60 432
49-286 5.0 12.8 7.8 18.30 0.30 19.19 658
49-287 2.0 56.5 54.5 13.19 0.22 13.84 474
49-300 146.5 170.7 24.2 26.40 0.41 27.62 947
49-304 239.0 275.0 36.0 9.53 0.13 9.92 340
49-305 61.0 62.9 1.9 65.93 2.49 73.41 2,517
49-305 168.5 173.0 4.5 43.00 0.52 44.55 1,528

Table 3
Recent Caladay Zone (Silver-Lead Mineralization)
Hole No. From
(ft) To
(ft) Width
(ft) Ag
(oz/ton) Pb
(%) Ag
Equivalent
(oz/ton) Ag
Equivalent
(g/t)
49-286 315.0 335.0 20.0 6.96 9.08 12.41 425
49-302 396.3 493.0 96.7 5.78 8.67 10.49 360
including 415.4 423.7 8.3 10.9 17.80 21.58 740
including 431.8 459.2 27.4 9.0 15.47 18.28 627

Note: Silver Equivalent calculated using $25.00/oz. Ag,
$3.10/lb. Cu and $0.90/lb. Pb.

Since these drill holes were completed from different drill
stations and intersect the veins at various angles the recovered
intersections may not reflect true widths.
Please refer to
http://www.us-silver.com
for all drilling results.

Debt Re-financing and Liquidity Update
The Company has agreed on terms to extend its current debt of
$7.9 million under its senior secured line of credit facility
agreement (the "Credit Facility") with
Hale Capital Partners ("Hale") for an additional 24 months.

The parties are working on definitive documentation and the
extension is subject to customary conditions.

An additional $2.1 million will be made available under the
Credit Facility on the satisfaction of conditions that the
Company expects to be attainable (including the delivery of
the final SMP).

In consideration of the extension and other amounts advanced or
forgone (including an additional $1.0 million in cash, the
additional $2.1 million under the credit facility and
a waiver of all fees except professional fees associated with
the extension), the Company has agreed to grant Hale a 1.5% net
smelter return ("NSR") royalty on its Galena properties.

Payment under the NSR would not commence while the Company
remains in good standing under the Credit Facility and half of
the NSR may be bought down within 18 months of the closing for
$5.2 million.

Outstanding amounts under the Credit Facility will accrue
interest at a fixed rate of 12% per annum with interest payable
monthly in arrears and may be prepaid in whole or in part
without premium or penalty at any time.

The Credit Facility will be secured by a first charge against
all the properties and assets of the Company and
its subsidiaries.

Amounts owing under the Credit Facility cannot be converted
into equity or voting shares of the Company or its subsidiaries.
No common shares, options or warrants of the Company were issued
to Hale or any other person and no broker or placement fees were
paid in connection with this transaction.
Other than professional expenses there are no fees
contemplated to be paid.

Quality Assurance / Quality Control ("QA/QC")
U.S. Silver & Gold maintains a QA/QC Program for all assays,
whether completed at the Drumlummon laboratory or at a contract
laboratory including the use of standards, blanks and
duplicates.

All QA/QC results are evaluated using a program of
QA/QC monitoring.

Both the contract laboratory and the Drumlummon laboratory
maintain programs of QA/QC as well.
Assays for the Caladay Zone were prepared by a commercial
laboratory located in Osburn, Idaho.


About U.S. Silver & Gold Inc.
U.S. Silver & Gold Inc. is a newly formed silver and gold mining
company focused on growth from its existing asset base and
the execution of targeted accretive acquisitions.

U.S. Silver & Gold owns and operates
the Galena Mine Complex in the heart of the Silver Valley/Coeur
d'Alene Mining District, Shoshone County, Idaho and
the Drumlummon Mine in Lewis and Clark County, Montana.

The Galena Mine produces high-grade silver and is the second most
prolific silver mine in U.S. history delivering
over 200 million ounces to date, and
the Caladay Zone is being evaluated for bulk mining development.

Mr. Jim Atkinson, Vice President, Exploration and a Qualified
Person under Canadian Securities Administrators guidelines,
has approved the contents of this news release.

For further information please see SEDAR or
http://www.us-silver.com
for the NI 43-101 compliant Technical Report on
the Galena Project dated March 22, 2013.

Cautionary Statement Regarding Forward Looking Information:
This news release contains "forward-looking information" ----of
new information, future events or other such factors which
affect this information, except as required by law.

SOURCE U.S. Silver & Gold Inc.

http://web.tmxmoney.com/article.php?newsid=61420816&qm_symbol=USA

God Bless