Silver Standard expands Peruvian silver

Vancouver — Silver Standard Resources (SSO-V) has an option to buy the silver resource contained in the Berenguela project in southern Peru.

The property, 50 km west of Juliaca, has produced more than 11 million oz. silver plus some copper.

Silver Standard will pay US$200,000 and 17,500 shares on signing with the owner. The company agrees to spend at least US$500,000 on drilling to expand the resource, as well as complete a resource estimate and prefeasibility work.

A mineral resource totalling 14 million tonnes grading 125 grams per tonne (56.3 million ounces contained silver), in addition to 1.32% copper and 18% manganese, was calculated in the 1960s. This estimate is based on results from drilling by Charter Consolidated Mining and Asarco.

At current silver prices, Silver Standard will pay 6 per oz. once it exercises the option. The company will have the right to mine the silver when the price reaches or exceeds US$7 per oz. for at least six months.