Jun 18 2018
Americas Silver Corporation is providing an update of recent hoist-related issues at its 100%-owned Galena Complex in Wallace, Idaho.
In late April 2018, there was a 10-day suspension of milling while certain maintenance repairs were completed in the No.3 Shaft. All ore and waste skipping is done using the No.3 shaft and hoist at the Galena Complex. This repair program had been ongoing for the past three years with production activities slowed every weekend to accommodate the repairs. The Company decided to complete all remaining work in a short continuous period rather than prolong the repairs over a period of approximately six months, in order to more efficiently conclude the repairs while improving mine productivity and flexibility over the remainder of the year. During this period, mining was uninterrupted and blasted material was stored underground until hoisting resumed. All work was successfully completed however April production was impacted. Management expected the April shortfall to be made up over the course of the year and May production met expectations.
On the evening of June 11, there was a mechanical failure in the brake mechanism of the No.3 hoist. The event occurred while the conveyance was stopped and with no load. Workers immediately began the repair work and expect to have the hoist back in operation by the end of the month. Mining will be suspended during this period with an associated loss of production for the duration of the repair work. The workforce is co-operating by scheduling vacation and personal leave days as possible. Galena production in the current quarter will be below budget. The Company is confident normal operation will resume immediately after the repair work is completed with no long-term issues expected following completion of the repair.
"We are continually striving to make Galena a safer, more predictable and profitable operation," said Darren Blasutti, President and CEO of Americas Silver Corporation. "These two short-term interruptions in the second quarter are unfortunate but are necessary to not only stabilize future production, but grow production at the Galena Complex."