Silver Eagle leases mill in Chile

Partners Silver Eagle Resources (SER-V) of Tucson, Ariz., and Equatorial Mining of Australia have leased a mill near Copiapo, Chile, to reprocess silver-gold tailings from the historic Cha~narcillo silver mine.

The first phase of construction will include installation of a 2-stage concentrator and cyclone-regrinding circuit.

The partners intend to produce gravity concentrates from 200,000 tons of tailings, which contain 1.6 million oz. silver and 5,750 oz. gold (averaging 8 oz. silver and 0.029 oz. gold per ton). Concentrates will be sold to the local smelter in Copiapo. Installation of the gravity circuit is expected to take two months, with startup testing scheduled for June.

In September, the joint venture will begin constructing a proprietary ammonia thiosulphate leaching system, followed by solvent extraction-electrowinning. Dor from the leach circuit will be sold to a local refinery.

Cha~narcillo was an important high-grade silver mine, dating from the 1860s. Tailings from the operation, and from other mines in the region, can still be found around Copiapo.

Silver Eagle has a 49% interest in the joint venture and will act as operator.