Denver —
The company has called for proposals from suppliers and expects to make its selection early in the first quarter. At full capacity, the operation should draw 50 MW.
Apex expects to receive favourable terms, citing the project’s location in energy-rich regions. Bolivia reportedly has a large surplus of hydrocarbons, while adjacent northern Chile has a systematic over-capacity of low-cost energy.
Once the company selects its power source, it can complete project financing with its team of lending banks. Consulting firm Kvaerner is to carry out engineering work.
In September, Apex selected Washington Group International (formerly Morrison Knudsen) as the mining contractor.
At 40,000 tonnes per day, San Cristobal should produce an average of 27 million oz. silver and 570 million lbs. zinc in the first five years of mining.
After two years of mining, Apex will evaluate the potential for increasing daily throughput to 60,000 tonnes.
The operation will produce two concentrates — zinc and lead — and ship them for processing. Cash operating costs are pegged at US$1.23 per oz. silver (net of lead byproduct credits) and US23 per lb. zinc.
Proven and probable reserves stand at 240 million tonnes grading 62 grams silver per tonne, 1.67% zinc and 0.58% lead, equivalent to 470 million oz. silver, 8.8 billion lbs. zinc and 3.1 billion lbs. lead. Mineralization remains open in several directions, as well as at depth.
Assuming that financing for the project arrives on schedule, construction on the project could begin in 2001 and would be completed in two years.
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