Apex finances Bolivian project

Apex Silver Mines (SIL-X) has filed a shelf registration statement with the U.S. Securities and Exchange Commission as part of a plan to finance the San Cristobal silver-zinc project in Bolivia.

To construct the open-pit mine, Apex needs to raise US$410 million, which it intends to do through debt and equity financing.

At 40,000 tonnes per day, the operation, situated in Bolivia’s Potosi department, would produce 24 million oz. silver, 560 million lbs. zinc and 180 million lbs. lead annually during the first five years of operation. Over the life of the mine, the average production would be 18.8 million oz. silver, 470 million lbs. zinc and 130 million lbs. lead per year.

Proven and probable reserves stand at 470 million oz. silver, 8.8 billion lbs. zinc and 3.1 billion lbs. lead within 240 million tonnes grading 62 grams silver, 1.67% zinc and 0.58% lead.

With such large reserves, the company is also considering increasing the mining rate to 60,000 tonnes per day, after the first few years of production.

The mine would be a conventional truck-and-shovel operation, with ore ground and sent to a flotation mill. The mill would produce both a lead and a zinc concentrate, which would be transported to the Chilean coast. From there, the concentrates will be shipped to offshore smelters and refineries.

Metal recoveries are pegged at 78.7% for silver, 91.2% for zinc and 80.4% for lead.

Assuming the availablity of financing, Apex could begin production as early as mid-2002.

Barclays Bank and Deutsche Bank Securities have arranged for the financing.