Americas Silver Corp. on March 21 posted an updated mineral resource estimate for its San Felipe zinc-silver-lead project in Mexico.
Using a 2.5% zinc equivalent cutoff, the project hosts indicated resources of 560 million pounds of zinc, 256 million pounds of lead and 9.1 million ounces of silver contained within 4.7 million tonnes.
The update marks a 258% and 236% increases for contained zinc and silver, respectively, over the September 2014 estimate, which used a silver-equivalent cutoff grade of 150 g/t.
The project's inferred mineral resources are estimated to contain 158 million pounds of zinc, 63 million pounds of lead and 3.1 million ounces of silver within 2 million tonnes of ore.
The estimate used metal prices of US$3/lb of zinc, US$1.05/lb of lead and US$18/oz of silver.
The updated estimate covers the La Ventana, San Felipe, Transversales and Las Lamas deposits, where the zinc-lead-silver mineralization occurs as skarn-related massive sulfide replacement veins often cut by late quartz veins.
The estimate was based on an updated interpretation of 336 drillholes completed by previous operators on the project since 1998, including 21 that were completed after the last mineral resource estimate for the project, as well as 6 new drillholes completed by Americas Silver in 2017.
Americas Silver holds an option to acquire a 100% stake in the San Felipe property.
"The updated estimate at San Felipe highlights potential for another low-capital project for the company, after our successful start-up of the San Rafael mine and the rapid resource expansion of the silver-rich Zone 120 deposit," Americas Silver President and CEO Darren Blasutti said.