Silver Standard Starts Production At Pirquitas

Argentina’s largest silver mine has achieved commercial production, Silver Standard Resources (SSO-T, SSRI-Q) says.

At full production, the mine in northern Jujuy province will produce an average of about 10 million oz. silver and 2,500 tonnes of tin a year, making Pirquitas one of the largest primary silver mines in the world. The deposit remains open at depth.

The mill will operate on oxide and transitional ore until the sulphide ore that is currently being exposed from the open pit is processed this quarter. Concentrates produced from the plant will be shipped to various smelters around the world.

Silver recoveries are surpassing 50% and silver concentrate is grading in excess of 22 kg silver per tonne.

Pirquitas — at an elevation of 4,100 metres — is accessible by two all-weather roads. The mine is powered primarily by natural gas, which is supplied by a 42-kmlong natural gas pipeline from the mine to an existing Trans-Andean pipeline.

Based on reserves published in May 2008, the mine will have a lifespan of about 14.5 years. Proven in-pit reserves totalled 10.7 million tonnes grading 194.5 grams silver per tonne (for 67.1 million contained ounces silver); 0.26% tin and 0.7% zinc.

Probable in-pit reserves tallied 19.3 million tonnes grading 201.7 grams silver (for 125 million oz. silver), 0.2% tin and 0.9% zinc.

At presstime in Toronto, Silver Standard traded at $23.97 per share. Over the last year, the shares have traded in a range of $9.88-27.69; the company has 71.7 million shares outstanding.