Silver Standard Resources Inc has published new figures on its Pirquitas silver-tin-zinc project in Argentina, following the revision of a previous feasibility study. Capital costs of the project are now estimated at US$220 million, substantially greater than the previous figure of $146.1 million based on 2005 input costs. “A significant portion of the increase in capital cost is a result of increased costs in global construction materials and inflation pressures in Argentina, particularly labour,” Silver Standard said in a statement.
Meanwhile proven and probable reserve tonnages and grades have also been revised upwards. The current figure is 21.34 million tonnes of ore grading 198.2 g/tonne silver, 0.24% tin and 0.88% silver, giving contained tin reserves of some 51,000 tonnes. Pre-strip development of the open-pit and construction of plant and infrastructure have commenced, with expenditure to date of some $40 million. The mill is scheduled for commissioning in the fourth quarter of 2008.
The mine has a planned 10-year operating life. Silver Standard has mandated Standard Bank to arrange a $75 million syndicated project loan, which would give it sufficient funds to complete construction.
