Silver-tin deposit confirmed for Sunshine

Drilling is confirming the existence of a large, disseminated silver-tin deposit at the Pirquitas property in northwestern Argentina.

Sunshine Mining & Refining (NYSE) reports that mineralization occurs as closely spaced, sheeted veins within Ordovician sediments. The deposit averages 500 ft. in width, 1,400 ft. in length and at least 800 ft. in depth.

Assays from the first three reverse-circulation drill holes, shown below, reveal considerable high-grade mineralization, which is open at depth.

In 1992, an independent study estimated a resource of 39 million tons grading 3.5-5.3 oz. per ton silver and 0.2-0.4% tin.

These estimates will be verified by means of sampling, once the underground workings of the Pirquitas mine, which closed in 1990, are dewatered. (Already, sampling on workings above the water table is returning high-grade values where little mineralization was expected.) This will be followed by underground core drilling.

Meanwhile, in northern Idaho, Sunshine will resume full-scale production at its namesake silver mine.

As mining focuses on the West Chance area, production is expected to increase to 2.7-3.2 million oz. in 1996, up from 1.7 million oz. produced last year. Proven and probable reserves stand at 192,000 tons grading 23 oz. per ton silver, or 4.4 million oz.

In financial news, the company posted a loss of US$4.4 million (or 4 cents per share) for the fourth quarter of 1995. For the year, the company posted a loss of US$15.5 million (13 cents per share), compared with a loss of US$4.9 million (8 cents per share) for 1994.

HoleIntervalThicknessSilver Tin

(ft.)(ft.)(oz/ton) (%)

AR-1305-440 135 9.3 0.69

AR-2105-46335818.1 0.55

AR-3230-358128 9.3 0.24