Americas Gold and Silver Corporation T.USA

New Release.

[abe19]

I was sent this News Release from David Morgan of silver-investor.com. Abe19 Suite 920 - 475 Howe St. Vancouver, BC V6C 2B3 Tel. [phone] Fax [phone] News Release No. 77 January 20, 2004 SCORPIO COMPLETES COCHRANE HILL GOLD DEPOSIT MODEL RESOURCE CALCULATIONS IN PROGRESS Scorpio Mining Corporation has completed the computer-generated three-dimensional model and first-stage evaluation of the Company's 100%-owned Cochrane Hill Gold Project, located 210 kilometres northeast of Halifax in Guysborough County, Nova Scotia. Over the past several months, Guy Mac Gillivray, PGeo, (arms-length Qualified Person as defined by National Policy 43-101) has entered all available surface and underground drill and sampling data into a digital database, from which a model of the gold deposit has been constructed. Based on the data and model, Mac Gillivray is calculating a new resource estimate for the deposit. The Cochrane Hill gold deposit is located in an 18- to 35-metre-wide, steeply dipping mineralized zone with multiple quartz veins. Scorpio controls over six kilometres of mineralized strike length and drilling has encountered high-grade gold at depths to 300 metres. The gold mineralization occurs as coarse free gold with past milling recoveries of more than 80%. Various bulk samples by previous operators demonstrated that the recovery of the gold poses no problems and it is anticipated that recoveries can be improved with the application of more modern techniques. Approximately $8 million has been spent by previous operators Massval Mines Ltd, Northumberland Mines Ltd, SCOMINEX (a mineral exploration venture between INCO and the Nova Scotia Government) and NovaGold Resources Inc. Past surface and underground drilling totals more than 17,000 metres. In addition, a 485-metre decline ramp was constructed to the minus 60-metre level and 145 metres of crosscut were driven to sample the mineralized zone in detail. The main shaft was refurbished to a depth of 64 metres. The underground workings are presently flooded; however, they easily can be refurbished for further underground work. In 1986, SCOMINEX calculated an uncut high-grade resource of 375,088 short tons grading 0.60 ounces of gold per ton (for five veins to a depth of 400 feet over a strike length of 750 feet, Imperial measurements from original work). Using the digitized data and the new model, Mac Gillivray has determined that the existing drill density is sufficient to calculate a new resource estimate, conforming to today's reporting standards, for seven veins to a depth of 270 metres over a strike length of 680 metres. Further wide-spaced drilling, away from the central area presently under evaluation and insufficient for resource calculations, intersects mineralization for an additional 225 metres to the east and 75 metres to the west. Scorpio has applied for a permit to dewater the underground workings, requested preliminary bids for surface and underground diamond drilling and plans a summer exploration and development program for the deposit. The summer program may include the extraction and processing of a sizable bulk sample of the mineralized veins to determine the economic viability of near-term production. Scorpio president William H. Bird comments, "The Cochrane Hill gold deposit is an excellent complement to the Nuestra Senora Silver Project in Mexico and adds an extra dimension to the Company. The Scorpio team was able to successfully identify and acquire this high-grade and potential near-term production property during a time of depressed metal prices. This success is doubly important now that metal prices and interest in precious metal deposits are on the rise." Scorpio Mining Corporation is a publicly traded Canadian exploration and mining development company with properties in Canada and Mexico. The Company will have a booth at the 2004 Vancouver Resource Investment Conference, January 25-26, at the Vancouver Convention & Exhibition Centre. Management invites shareholders and the public to visit and discuss the Company's projects and activities. Free pre-registration and complete conference details are available at: www.goldshow.ca. ON BEHALF OF THE BOARD OF DIRECTORS Peter J. Hawley Chairman, CEO, Scorpio Mining Corporation OFFICERS AND BOARD MEMBERS PETER HAWLEY, PGeo, WILLIAM H. BIRD, PGeo, ROBERT B. BLAKESTAD, LG, & TRACY D. HURLEY, PGeo, SERVE THE COMPANY AS QUALIFIED PERSONS. THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT THE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.