Apex Silver ships first concentrate from San Cristobal

Apex Silver Mines (SIL-X) has completed the first two shipments of concentrate from its San Cristobal property in southwestern Bolivia.

The first 3,500 dry metric tonne shipment of lead, zinc and silver bulk concentrate left the Mejillones port in Chile on Sept. 22. A second 9,100 dry metric tonne shipment of zinc concentrate was sent to smelters in Asia on Oct. 18.

The San Cristobal plant was completed in late June and initial production began in August. Construction of the Mejillones port facility was also completed in the second quarter of the year. Developing the project involved building a 65-km rail spur from the mine to the main rail line.

Based on a bankable-quality feasibility study by an independent engineering firm, Apex Silver believes San Cristobal will be among the worlds largest producers of both silver and zinc.

Apex Silver owns 65% of the San Cristobal mine with Sumitomo of Japan owning the remaining 35%.

San Cristobal has about 450 million oz. of silver, 8 billion lbs. of zinc and 3 billion lbs. of lead contained in 231 million tonnes of open-pittable proven and probable reserves. The ore body is open at depth and laterally.

Apex Silver has signed long-term sales agreements with 13 smelters in Europe, Australia and Asia. These agreements cover the sale of a majority of San Cristobals planned production of zinc and lead concentrates for the first five years. The company says it plans to sell its remaining concentrate on a spot basis.

The ores primary lead material is silver-rich galena, or lead sulfide, and the primary zinc material is sphalerite, or zinc sulfide.