Sunshine boosts reserves at Pirquitas

Sunshine Mining & Refining (SSC-N) has increased proven and probable reserves at the Pirquitas silver property in northwestern Argentina.

The figure now stands at 116 million oz. silver within 23.9 million tons grading 4.9 oz. silver per ton, 0.33% tin and 0.57% zinc.

To arrive at the figure, Sunshine used a cutoff grade of 1.75 oz. per ton and a stripping ratio of 5.4-to-1. However, the company expects to reduce the stripping ratio as a result of a halo of zinc mineralization around the main deposit.

Meanwhile, the projected daily mining rate has been boosted to 6,600 tons, or 9 million oz. silver annually, assuming a 78% recovery for silver. Tin and zinc recovery stand at 63% and 41%, respectively. Sunshine estimates cash costs to fall below US$2 per oz. silver, net of byproduct credits.

A final feasibility study is expected in the next month, following which a production decision is expected. Capital costs for mine construction are projected at US$120 million.

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