Low silver prices took their toll on Sunshine Mining & Refining (SSC-N), which posted a net loss of US$24.8 million in 1996, compared with a net loss of US$15.4 million in the previous year.
On a brighter note, the company expects to increase production and lower costs as ongoing development improves access to newly discovered reserves at the Sunshine mine in the Coeur d’Alene district of Idaho.
Meanwhile, infill drilling and underground sampling are under way at the company’s newly discovered Pirquitas silver property in Argentina. The program is expected to provide information for a bankable feasibility study scheduled to start later this year.
The project contains more than 300 million oz. of silver resources and is envisaged as a large, low-cost, open-pit mine.
Last year, Sunshine recovered 2.5 million oz. silver (from 121,000 tons at an average grade of 22 oz.) at a cash cost of US$6.12 per oz. from the Sunshine mine in Idaho. An improvement was noted in the fourth quarter, when 828,000 oz. were recovered (from 39,000 tons averaging 21.9 oz.) and production costs fell to US$5.32 per oz.
The average silver price last year was US$5.11 per oz., compared with US$5.20 per oz. in 1995.
Be the first to comment on "Sunshine Mining sees silver lining"