Americas Silver Corporation Provides Updated Mineral Reserve and Resource Estimates

TORONTO–(BUSINESS WIRE)–Americas Silver Corporation (TSX: USA) (NYSE American: USAS) (“Americas
Silver” or the “Company”) is pleased to provide updated Mineral Reserve
and Resource estimates for its two 100% owned assets, the Galena Complex
in Idaho, USA and the Cosalá Operations in Sinaloa, Mexico, including
the San Rafael, El Cajón, and Nuestra Señora mines, and the Zone 120
deposit. The estimate also includes the San Felipe project in Sonora,
Mexico on which the Company holds an option.

This updated Mineral Reserve and Resource estimate reflects the drilling
programs completed between June 30, 2017 and June 30, 2018 as well as
production data during that period (where applicable) with an effective
date of June 30, 2018 for the estimates. The Mineral Resources
attributable to the San Felipe project have an effective date of March
15, 2018.

Highlights include:

  • Silver inventory contains 26 million ounces of proven and probable
    reserves, a decrease of 2 million ounces or 9%; 70 million ounces of
    measured and indicated resources, an increase of 12 million ounces or
    21%; and 28 million ounces of inferred resources, a decrease of 9
    million ounces or 23%.
  • Zone 120 indicated resources increased by 30% to over 16 million
    silver ounces.
  • Galena replaced the contained silver in the proven and probable
    reserves.
  • The inclusion of the San Felipe project adds 9 million ounces of
    silver, 560 million pounds of zinc and 256 million pounds of lead to
    measured and indicated resources as published in the May 3, 2018
    technical report.
                                                         

Proven and Probable Mineral Reserves † June 30, 2018

                                                       

Grade

   

Contained Metal

Tonnes

   

Silver

   

Copper

   

Lead

   

Zinc

   

Silver

   

Copper

   

Lead

   

Zinc

000s

   

g/t

   

%

   

%

   

%

   

koz

   

Mlbs

   

Mlbs

   

Mlbs

Total Cosalá P&P 2,912 110 1.68 3.98 10,285 107.7 255.7
Total Galena P&P       1,264     378     0.18     5.10         15,357     5.1     142.0    
Total P&P       4,176     191     0.06     2.71     2.78     25,642     5.1     249.7     255.7
 
 

Measured and Indicated Mineral Resources (Exclusive of Mineral
Reserves) ‡ June 30, 2018

                                                 

Grade

   

Contained Metal

Tonnes

Silver

Copper

Lead

Zinc

Silver

Copper

Lead

Zinc

000s

   

g/t

   

%

   

%

   

%

   

koz

   

Mlbs

   

Mlbs

   

Mlbs

Total Cosalá M&I 8,933 129 0.25 0.52 1.17 36,928 49.0 102.8 231.2
Total San Felipe M&I 4,685 61 2.48 5.42 9,125 255.9 559.7
Total Galena M&I       1,795     417     0.28     4.80         24,076     11.0     190.0    
Total M&I       15,414     142     0.18     1.61     2.33     70,130     60.0     548.7     790.9
 
 

Inferred Mineral Resources ‡ June 30, 2018

                                                 

Grade

   

Contained Metal

Tonnes

Silver

Copper

Lead

Zinc

Silver

Copper

Lead

Zinc

000s

   

g/t

   

%

   

%

   

%

   

koz

   

Mlbs

   

Mlbs

   

Mlbs

Total Cosalá Inferred 2,955 113 0.21 0.91 1.35 10,759 14.0 59.1 88.1
Total San Felipe Inferred 2,008 48 1.43 3.57 3,110 63.2 157.8
Total Galena Inferred       1,093     411     0.30     6.28         14,458     7.2     151.4    
Total Inferred       6,057     145     0.16     2.05     1.84     28,327     21.2     273.7     246.0
 

“The Company has done a good job at managing its proven and probable
mineral reserves and measured and indicated resources despite modest
exploration budgets,” said Darren Blasutti, President and CEO. “With
reserves and measured and indicated resources of approximately 100
million ounces of silver, 1.1 billion pounds of zinc, and over 800
million pounds of lead across our royalty- and stream-free properties,
we provide very attractive production optionality and per share resource
leverage to higher commodity prices.”

Compared to the last Mineral Reserve and Resource estimate at June 30,
2017, silver contained in the consolidated proven and probable reserves
dropped 9%, or 2.6 million ounces, to 25.6 million ounces due to mining
depletion, the Nuestra Señora mine’s repositioning to care and
maintenance, and a change in pillar design at San Rafael. These factors
also contributed to the decrease in zinc and lead comparatively between
periods. The mining recovery at San Rafael dropped from 90% to 80% after
incorporating geotechnical parameters which reflect the pillar
requirements associated with the “post-pillar cut and fill” mining
method. Galena continues to primarily produce silver-lead ore and the
proven and probable reserves associated with this material decreased by
11% or approximately 0.9 million ounces. Drilling and additional
resource modeling work completed on the silver-copper resource increased
the contained silver reserves by 12%, or 0.8 million ounces to 7.9
million ounces. The net result at Galena is silver contained in the
reserves remained unchanged, despite production depletion.

Silver contained in the consolidated measured and indicated resources
increased by 21% to 70.1 million ounces. The measured and indicated
resources were down slightly at Galena compared with the 2017 estimate
while Cosalá Operations were boosted by gains at Zone 120 which
increased 3.7 million ounces and the San Felipe Project added 9.1
million ounces. Total silver contained in the inferred category
decreased by 23% to 28.3 million ounces primarily due to the resource
conversion at Zone 120, adopting more conservative estimation parameters
for inferred classification at Galena offset by the inclusion of 3.1
million ounces from San Felipe Project.

Drilling completed in early 2018 in the Company’s Zone 120 deposit
improved the confidence and understanding of the deposit. The tonnage
and silver contained in the indicated resources increased to 2.7 million
tonnes and 16.2 million ounces grading 186 g/t silver and 0.46% copper,
an improvement of approximately 30%, or 0.6 million tonnes and 3.7
million ounces. Given the similarities in ore characteristics with the
El Cajón measured and indicated resource (1.1 million tonnes and 5.7
million ounces), and critical mass of the combined measured and
indicated resource between Zone 120 and El Cajón, the Company is
internally assessing the economic viability of the joint development of
these deposits. The evaluation is expected to be completed in Q4, 2018.

Additional detail can be found on the Company’s website www.americassilvercorp.com.

About Americas Silver Corporation

Americas Silver is a silver mining company focused on growth in precious
metals from its existing asset base and execution of targeted accretive
acquisitions. It owns and operates the Cosalá Operations in Sinaloa,
Mexico and the Galena Mine Complex in Idaho, USA. The Company holds an
option on the San Felipe development project in Sonora, Mexico.

Daren Dell, Chief Operating Officer and a Qualified Person under
Canadian Securities Administrators guidelines, has approved the
applicable contents of this news release. For further information please
see SEDAR or americassilvercorp.com.

Cautionary Statement on Forward-Looking Information:

This news release contains “forward‐looking information” within the
meaning of applicable securities laws. Forward‐looking information
includes, but is not limited to, the Company’s expectations intentions,
plans, assumptions and beliefs with respect to, among other things, the
realization of exploration, operational, production, and development
plans, the Cosalá Operations and Galena Complex as well as the Company’s
financing efforts. Often, but not always, forward‐looking information
can be identified by forward‐looking words such as “anticipate”,
“believe”, “expect”, “goal”, “plan”, “intend”, “estimate”, “may”,
“assume” and “will” or similar words suggesting future outcomes, or
other expectations, beliefs, plans, objectives, assumptions, intentions,
or statements about future events or performance. Forward‐looking
information is based on the opinions and estimates of the Company as of
the date such information is provided and is subject to known and
unknown risks, uncertainties, and other factors that may cause the
actual results, level of activity, performance, or achievements of the
Company to be materially different from those expressed or implied by
such forward looking information. This includes the ability to develop
and operate the Cosalá and Galena properties, risks associated with the
mining industry such as economic factors (including future commodity
prices, currency fluctuations and energy prices), ground conditions and
factors other factors limiting mine access, failure of plant, equipment,
processes and transportation services to operate as anticipated,
environmental risks, government regulation, actual results of current
exploration and production activities, possible variations in ore grade
or recovery rates, permitting timelines, capital expenditures,
reclamation activities, social and political developments and other
risks of the mining industry. Although the Company has attempted to
identify important factors that could cause actual results to differ
materially from those contained in forward-looking information, there
may be other factors that cause results not to be as anticipated,
estimated, or intended. Readers are cautioned not to place undue
reliance on such information. By its nature, forward-looking information
involves numerous assumptions, inherent risks and uncertainties, both
general and specific that contribute to the possibility that the
predictions, forecasts, and projections of various future events will
not occur. The Company undertakes no obligation to update publicly or
otherwise revise any forward-looking information whether as a result of
new information, future events or other such factors which affect this
information, except as required by law.

Cautionary Note to U.S. Investors:

The terms “mineral resource”, “measured mineral resource”, “indicated
mineral resource”, “inferred mineral resource” used in the press release
are Canadian mining terms used in accordance with National Instrument
43-101 – Standards of Disclosure for Mineral Projects under the
guidelines set out in the Canadian Institute of Mining, Metallurgy and
Petroleum Standards. Mineral resources which are not mineral reserves do
not have demonstrated economic viability.

While the terms “mineral resource”, “measured mineral resource”,
“indicated mineral resource”, and “inferred mineral resource” are
recognized and required by Canadian regulations, they are not defined
terms under standards in the United States and normally are not
permitted to be used in reports and registration statements filed with
the Securities & Exchange Commission (“SEC”). As such, information
contained in the Company’s disclosure concerning descriptions of
mineralization and resources under Canadian standards may not be
comparable to similar information made public by U.S companies in SEC
filings. With respect to “inferred mineral resource” there is a great
amount of uncertainty as to their existence and a great uncertainty as
to their economic and legal feasibility. It cannot be assumed that all
or any part of an “inferred mineral resource” will ever be upgraded to a
higher category. Investors are cautioned not to assume that any part or
all of the mineral deposits in these categories will ever be converted
into reserves.


CIM Definition and Standards were followed for
Mineral Reserve Estimates.
Mineral Reserves are estimated at a
NSR cut-off value of US$40/tonne at Nuestra Señora, US$50/tonne at San
Rafael and US$198/tonne at Galena.
The NSR cut-off is calculated
using recent operating results for recoveries, off-site concentrate
costs, and on-site operating costs.
Mineral Reserves are
estimated using metal prices of $16.00 per ounce of silver, $2.50 per
pound of copper, $0.90 per pound of lead and $0.90 per pound of zinc.
Numbers may not add or multiply accurately due to rounding.

CIM Definition and Standards were followed for
Mineral Resource Estimates.
Mineral Resources are estimated at a
NSR cut-off value of US$34/tonne at San Rafael, US$40/tonne at Zone 120,
US$30/tonne at El Cajón and US$198/tonne at Galena.
Mineral
Resources at Nuestra Señora are estimated at a 90g/tonne silver
equivalent cut-off grade.
Mineral Resources at San Felipe are
estimated at a 2.5% zinc equivalent cut-off grade. NSR and equivalent
cut-offs were calculated using recent or expected operating results for
recoveries, off-site concentrate costs, and on-site operating costs.
Mineral
Resources are estimated using $18.00/oz Ag, $3.00/lb Cu, $1.05/lb Pb and
$1.05/lb Zn.
Mineral Resources are reported exclusive of Mineral
Reserves and as such the Mineral Resources do not have demonstrated
economic viability. Numbers may not add or multiply accurately due to
rounding.

The Mineral Resource estimate for the Cosalá Operations is based on
block models prepared by independent mineral resource consultants. The
Nuestra Señora Mineral Reserve and Resource estimate was prepared by
Company personnel under the supervision of James Stonehouse, a Qualified
Person for the purpose of NI 43-101.
The San Rafael, Zone 120, El
Cajón and San Felipe Mineral Resource estimates were prepared by Paul
Tietz, C.P.G. who is an independent consultant and Qualified Person for
the purpose of NI 43-101.
The San Rafael Mineral Reserve estimate
was prepared by company personnel under the supervision of Shawn Wilson,
a Qualified Person for the purpose of NI 43-101.

The Mineral Resource estimate for the Galena Complex was prepared
using a combination of block modelling and the accumulation method.
The
Mineral Resource estimate was prepared by Company personnel under the
supervision of Aaron Gross, C.P.G., a Qualified Person for the purpose
of NI 43-101.
The Mineral Reserve estimate was prepared by
Company personnel under the supervision of Shawn Wilson, a Qualified
Person for the purpose of NI 43-101.

The Mineral Resources attributable to the San Felipe project have an
effective date of March 15, 2018.

Varying cut-off grades have been used depending on the mine, methods
of extraction and type of ore contained in the reserves.
Mineral
resource metal grades and material densities have been estimated using
industry-standard methods appropriate for each mineral project with
support of various commercially available mining software packages.
The
Company’s normal data verification procedures have been employed in
connection with the calculations.
Verification procedures include
industry standard quality control practices.
Sampling, analytical
and test data underlying the stated mineral resources and reserves have
been verified by employees of the Company under the supervision of
Qualified Persons, for purposes of 43-101 and/or independent Qualified
Persons.
Additional details regarding Mineral Reserve and Mineral
Resource estimation, classification, reporting parameters, key
assumptions and associated risks for each of the Company’s mineral
properties are provided in the respective NI 43-101 Technical Reports
which are available at
www.sedar.com

Contacts

Darren Blasutti
President and CEO
416-848-9503

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