Higher silver prices, and consequently higher revenue, helped Sunshine Mining (NYSE) reduce the loss posted for the third quarter of 1994.
The company had a net loss of US$2.9 million on revenue of US$5 million for the third quarter of 1994, compared with a loss of US$17.4 million on US$3.2 million over the same period in 1993.
Silver production slumped for the first nine months of 1994, dropping to 1.6 million oz. in 1994 from 1.8 million oz. in 1993. The lower production was primarily a result of rockbursts in some of the more productive areas of the Sunshine mine in the Coeur d’Alene district of Idaho.
As a result of its improving financial condition, Sunshine is now expanding operations through new mine acquisition and development, as well as exploration at the Sunshine mine.
The company has signed an agreement with Empresa Argentina de Cemento Armado (EACA), whereby it can earn a half interest in the Huemules concessions in the Argentine province of Chubut. Sunshine will complete US$2.1 million worth of exploration and development there over a 3-year period.
EACA has mined the property sporadically, shipping 4,000 tons of ore averaging 3 oz. gold per ton directly to a smelter. Sunshine plans to start drilling the property soon.
Drilling and mapping have been carried out at the company’s Revenue Virginius silver property in Colorado. Results from the 7-hole program are expected to boost the current reserve of 4.9 million oz. silver. As well, surface mapping has identified extensions of the vein, which will be drill-tested this spring. Exploration carried out in the 3100 level exploration drift at the Sunshine mine has encountered significant mineralization, and the company will continue to advance the drift heading.
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