Americas Silver Corp fka USAPF

[NYBob]

Thoughts on Galena mine 4Q2013 production report -

Couple things jump out at me from this report.
First, this particular report is incomplete since it does not
quantify the number of tons and grade of development waste
milled in 4Q2013...in 3Q2013 production report 7,676 tons of
development waste was milled at a grade of 1.75 opt silver.
Second, contribution of new long hole stopes on
Caladay Vein lead halo is evident in lead production
numbers doubling from 705,665lbs in 3Q2013
to 1,453,811lbs in 4Q2013.
In early November on Scotia podcast Darren said there was
still 200ft of development work necessary before ramping
the first long hole stope bulk production at
Galena mine so taking into account 10 day loss of production
in December, this doubling of lead produciton from 3Q2013
to 4Q2013 was accomplished with potentially only 2-4 weeks
of long hole stope production contribution
during all of 4Q2013.

Stope muck head grade at Coeur and Galena mills increased
from 12.83opt silver in 3Q2013 to 14.38opt silver in 4Q2013,
a 12% increase in silver grade in just one quarter.
2013 was first full year of barrick boyz running galena mine and
year over year comparables of stope silver grade increase
are more profound, 4Q2012 grade was 10.70opt silver vs
4Q2013 at 14.38opt silver.

Under previous USA management, Galena mine mucked
generally in the low 8 opt silver range.
Part of increase in silver grade can be attributed to
high grading mine, part of the increase in silver grade
is a result of management putting specific processes
in place at stope to keep miners from trying to hit
production bonus by mixing waste rock with bonanza grade ore.
Previous USA management solution for this dillution problem
was simply to accept it and work around it by downgrading
all Galena complex mineral reserve by 20% so that
galena mine reserves better reflected the miners
dillutive underground mining technique.

Stope output a 395tpd in 3Q2013 and 394tpd in 4Q2013.
This suggests to me that at 395tpd, the bottom is in
with respect to mill throughput tonnage under
new high grade Galena mine plan.

Per 3Q2013 production report, the mills also processed
an additional 83tpd of devlopment waste grading 1.75opt silver.
Assuming underground development proceeded at a similar pace
in 4Q2013 as it did in 3Q2013, potentially 6800+ tons
of development waste were run through mills in 4Q2013.
Grade on this 6800 tons of waste is a real wildcard since
geometry of Caladay lead is very broad, in order to get
to central area of bonaza
grade 15opt silver, 15% lead,
(development drifting must necessarily cut through
lower grade areas, lots of 5-6opt silver and
6-7.5% lead out there)...
by petersgray thanks good info -

http://www.us-silver.com/

http://www.us-silver.com/files/presentation20131203.pdf

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=96182707
God Bless