La Pitarilla boosts Silver Standard’s resources

Vancouver — Drill results from the Pitarilla and Maverick Springs properties, in Mexico and Nevada respectively, have enabled Silver Standard Resources (SSO-V) to boost its overall silver resource.

The company now has just over 403 million oz. in the measured and indicated category, plus 446 million oz. inferred.

At La Pitarilla, which is wholly owned, 41.1 oz. silver are contained in 11.35 million tons grading 3.62 oz. silver per ton in the measured and indicated category, while 13.2 million oz. are in 3.75 million tons grading 3.51 oz. silver. The figures show a 40% increase from last year.

At the Maverick Springs property, indicated resources total 69.63 million tons grading 1 oz. silver, equivalent to 69.6 million oz., while the inferred figure stands at 85.5 million tons grading 1 oz. silver, or 85.5 million oz. That’s 25% greater than year-ago estimates. Silver Standard has an option on the project from Vista Gold (VGZ-T), which acquired it from Newmont in 2002.

Meanwhile, Silver Standard continues to explore the Manatial Espejo silver-gold deposit in Argentina, now at the feasibility stage. Ownership is shared equally with Pan American Silver (PAA-T), the operator.

Manatial Espejo hosts 4.8 million tons grading 7.69 oz. silver and 0.13 oz. gold, equivalent to 18.6 million oz. silver and 320,000 oz. gold in the measured and indicated category. Inferred resources stand at 1.76 million tons grading 7.54 oz. silver and 0.11 oz. gold, or 6.6 million oz. silver and 95,000 oz. gold.

Farther afield, at the Bowdens project in New South Wales, Australia, Silver Standard reports a measured and indicated resource of 52.5 million tons grading 1.51 oz. silver, equivalent to 79.5 million oz., plus 14.7 million tons of 1.19 oz. silver in the inferred category, or 17.6 million oz.

The company purchased physical silver during the latest downturn in the market, and now owns 1.9 million oz. However, the price has declined by about 30% since mid-April, from US$8 to US$5.50 per oz. President Robert Quartermain says Silver Standard bought the metal at prices ranging from US$5.50 to US$5.90 per oz.

The company foresees an increase in demand for silver used in industry and that this will outweigh its value as a currency. Silver has been following gold lower over recent months. The gold price has fallen by about 15%, owing to the strengthening of the U.S. dollar.

The company also has measured and indicated gold resources of 840,000 oz. plus 1.4 million oz. inferred.