Americas Silver Corporation Provides an Update on San Felipe Resource Estimate - Seite 3

Project Database

The project database contains collar, downhole survey, assay, and geology data for the four primary drilling campaigns: Boliden (27 drill holes in 1998-2000), Hochschild (183 drill holes in 2006-2008), Santacruz (126 drill holes in 2013 and 2014), and Americas Silver (six drill holes in 2017). Of the 342 total project drill holes in the database, 294 are within the four deposit areas and contribute to the geologic models and grade estimates.

In preparation for the updated mineral resource estimate, MDA audited the project database by validating the collar, survey and assay data against available original surveys and assay certificates. MDA made minor adjustments to some of the historical drill collar locations and corrected some rounding inconsistencies in the assay data. As part of the data validation, the historical quality assurance/quality control programs were evaluated. The assay database is considered appropriate for use in the current mineral resource estimate.

Estimation Methodology

Separate orthogonal block models were created for each zone. All have a 2m by 2m by 3m block size that is appropriate for the application of underground mining methods.

Zinc mineral-domain interpretations were used to code the drill samples. Quantile plots, along with domain statistics and spatial location of higher-grade samples, were made to assess validity of these domains and to determine capping levels for the individual mineral domain metal populations. Compositing was done to 1.5m down-hole lengths using the capped assays and honouring all mineral-domain boundaries.

The mineral domains were also used to code the block models with the percent of block in each mineral domain. Density values are based on 875 density measurements which are grouped and assigned to the block model by zinc mineral domains. The final block-diluted metal grade and density value for each model block is a volume-weighted average based on the proportion of each domain within the block.

Mineral domains aid in controlling the grade distribution, and the estimation used inverse distance to the third power (“ID³”) to interpolate grades into the domains. Estimation search distances were determined from zinc variograms while the different search ellipses reflected the unique deposit orientations.

Estimation Comparison

The current estimate is based on an updated interpretation of 336 drill holes completed by previous operators on the project since 1998, including 21 that were completed after the last mineral resource estimate was published for the project in 2014, and 6 new drill holes completed by Americas Silver in 2017. The contained zinc, silver and lead increased by 258%, 236%, and 320% respectively in the indicated mineral resources and decreased by 52% in the inferred mineral resources. The change in estimate is in comparison to the previous estimate from the technical report titled “2014 Resource Estimate and PEA, San Felipe Project, Sonora, Mexico”, with an effective date of September 4, 2014 and amended date of June 29, 2016, completed for the previous option holder, Santacruz Silver Mining Ltd. Some of the differences between the current estimate and the previous estimate are a result of a reinterpretation of the project as a zinc deposit compared to a silver deposit. The current mineral resource cut-off value of 2.5% zinc equivalent, as compared to a combination of 75 gram per tonne (g/t) and 150 g/t silver equivalent cut-off values used in the 2014 resource estimate, brought in additional material into both the indicated and inferred categories. The use of more liberal zinc variogram distances in determining classification criteria, versus the more restrictive silver variogram distances in 2014, also resulted in converting a portion of the 2014 inferred mineral resources into current Indicated mineral resources.