LATIN AMERICA — Quiruvilca hits record output

The Quiruvilca mine in northern Peru produced record amounts of silver in June and July, reports Pan American Silver (PAA-T).

The company attributes the increase to an expansion program that boosted output to 47,170 tonnes in June and 48,580 tonnes in July from historical monthly levels of about 33,000 tonnes. Production in July had an average grade of 218 grams silver per tonne and 4.66% zinc.

However, the rise in production did not translate into profits. For the second quarter, Pan American reported a loss of US$1.8 million (or 8 cents per share) on revenue of US$7.7 million, compared with a loss of US$1.1 million on revenue of US$6 million in the similar period of last year. Total cash costs at Quiruvilca for the quarter weighed in at US$5.87 per oz., compared with US$2.66 per oz. over the corresponding period last year. The cash cost net of byproduct credits was US$3.61 per oz. compared with US$1.25 per oz. last year.

During the first six months of the year, the mine produced 1.4 million tonnes of silver, 10,583 tonnes of zinc, 2,995 tonnes of lead and 734 tonnes of copper.

Elsewhere in Latin America, at the Pirquitas silver project in Argentina, owner Sunshine Mining and Refining (SSC-N) has completed half of a 66,000-ft. drill program aimed at expanding reserves.

Current reserves stand at 15.1 million tonnes grading 199 grams per tonne. Areas remaining to be drilled are considered to be on-trend with existing reserves, and the company will conduct condemnation drilling in areas on which waste dumps, a tailings impoundment and plants will be built.

The US$100-million project, situated in Jujuy province, is being designed as an open-pit producer and is expected to churn out 9 million oz. silver per year. Cash costs at the project, which will provide a substantial tin credit, are expected to be US$3 per oz.

The project’s feasibility study, of which the drilling is part, will be completed next month.