Sunshine firms up Argentine deposit

Drilling and sampling have expanded the estimated resource of the Pirquitas silver-tin deposit in northern Argentina.

Sunshine Mining & Refining (NYSE) reports that the deposit contains 47.5 million tons of silicified and altered sedimentary rocks grading 6.57 oz.

silver per ton and 0.49% tin.

The company is continuing to define the deposit with core drilling from Level 1 underground and reverse-circulation drilling from the surface. The deposit is open at depth and along strike.

Dewatering of underground workings is also continuing. Access to Level 3 was expected to have been achieved by presstime, and dewatering should be completed by the end of May.

Sunshine has collected bulk samples for metallurgical testwork. A bankable feasibility study, to begin later in the year, is expected to convert much of the resources to the proven and probable category.

The company anticipates mining the material using open-pit methods.

Sunshine acquired the Piruitas property in November 1995 for US$1.7 million.

Pirquitas, situated in Jujuy province on the southern extension of the Bolivian tin belt, is Argentina’s largest historic producer of silver and tin. Some 27 million oz. of silver and 22,000 tons of tin have been produced.

Highlights from recent drilling and underground sampling are shown below: Drilling

HoleIntervalThicknessSilverTin

(ft.)(ft.)(oz./t)(%)

AR-4P72-1871156.40.19

187-3411543.70.08

AR-6P236-259235.50.19

443-6231805.40.22

AR-7P601-689883.40.50

Underground Sampling

Adit/LevelLengthSilverTin

(ft.)(oz./t)(%)

SM-11387.70.42

2334.60.35

SM-249211.71.44

8516.70.67