The Relief Canyon project is located at the southern end of the Pershing Gold and Silver Trend along the Humboldt Range, one of Nevada’s highly prospective historic mining jurisdictions. Once a producing open pit mine, infrastructure on site at Relief Canyon includes easy access to power and water as well as a fully permitted heap-leach processing facility with a capacity of 21,500 tons per day.
A Feasibility Study released in May 2018 outlined average annual production of 91,000 ounces of gold over a 5.6-year mine life at an average all-in-sustaining-cost of US$801 per ounce of gold. Proven and Probable Reserves as of May 2018 totaled 27.5 Mt of 0.72 g/t gold material for 635,000 contained gold ounces (based on 0.17 g/t cut-off grade).
Significant exploration potential exists at Relief Canyon as approximately 20% of the 11,700-hectare land package has been explored to date. A 2018 drilling program comprised of 9,000 metres focused on four target areas referred to as the West Step-Out area, the North East Pit, the Main Zone, and the South East Lightbulb Pit. The bulk of the drilling was performed at the West Step-Out area and focused on extending mineralization to the west and southwest of the current economic pit.
Americas Gold and Silver has received permits to begin construction and resume mining. In May 2020 Sandstorm received its first gold delivery from Americas Gold and Silver under the Relief Canyon stream agreement.
The Relief Canyon mine achieved first gold pour in mid-February 2020 and expects to reach commercial production by the end of the fourth quarter of 2020.