Vancouver – An exceptional drill intersection has topped off a 116% increase in resources for Silver Standard Resources (SSO-T, SSRI-Q) at its Pitarrilla silver project in Durango State, Mexico.
The project hosts a measured resource of 27.2 million tonnes grading 120.6 grams silver per tonne, with another 35.6 million tonnes grading 112.5 grams silver in the indicated category. Measured and indicated resources collectively contain 234.3 million oz. silver, representing a 249% increase over the previous estimate.
Pitarrilla also hosts an inferred resource of 64.4 million tonnes grading 92.7 grams silver, or about 192.1 million oz. silver, up 47.5% from the previous estimate. The updated calculations are based on 60,710 metres of drilling, including 155 diamond drill holes totaling 40,153 metres and 186 reverse circulation holes totaling 20,557 metres.
Drilling is continuing, with one recent hole intersecting 163 metres averaging 230.1 grams silver, including 15.7 metres averaging 1,706.1 grams silver, 6.92% zinc, 6% lead, and 5.57% copper.
Within the 15.7-metre intersection is a 10.2-metre interval averaging 2,416.7 grams silver, 8.62% zinc, 8.84% lead and 7.73% copper, including 3.7 metres averaging 2,615.8 grams silver, 8.21% zinc, 1.84% lead and 14.06% copper. Below that is 4.4 metres averaging 2,983.9 grams silver, 11.34% zinc, 18.58% lead and 4.02% copper. Assays are pending a 40-metre section at the bottom of this hole.
On the financial front, the company reported second quarter net earnings of $16.5 million, or $0.28 per share, compared to a loss of $1 million a year earlier. Earnings in the latest quarter reflect an after-tax gain of $35.4 million from the sale of the company’s 50% interest in the Manantial Espejo silver project in Argentina.
Silver Standard ended the quarter with $258.5 million of working capital and no debt. In addition to the drilling campaign under way at the Pitarrilla project, the company is poised to select an engineering, procurement and construction management firm to bring into production the Pirquitas silver project in Argentina. Proven and probable reserves contain 107.1 million oz. silver. The proposed US$146-million, open-pit mine is expected to produce an average of 9.6 million oz. silver per year over an operating life of 8.8 years. Production would be higher in the first and second years, at 10.8 million oz. and 10.2 million oz.
A drilling program is also under way at the San Luis joint venture in Peru, where the company and Esperanza Silver (EPZ-V) are exploring for gold-silver mineralization in surface veins that have been traced for more than 5 km. The company is also updating scoping studies for its wholly owned Diabillos silver-gold project in Argentina, and the Bowdens silver project in Australia.
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