Silver Standard Resources reported that its silver-tin-zinc Pirquitas project in Argentina has started producing silver and will soon be producing tin. Since the end of March the company has completed commissioning of the silver flotation circuit and commenced concentrate production. Silver concentrate is now being produced and stockpiled for shipment in May. At current metal prices, the silver and tin concentrates account for over 95% of the anticipated revenue from the mine. As a result, the silver circuit will be optimized first, followed by the tin circuit. A plan for zinc production is still being evaluated.
Open pit pre-stripping has been completed and the initial ore has been exposed. Open pit ore is being stockpiled while the historical jig tailings are fed through the silver circuit during the second quarter. With production ramping up through the second quarter of 2009, Pirquitas is expected to produce approximately six million ounces of silver in 2009 and achieve full production in 2010 of approximately 10 million ounces of silver. Annual tin-in-concentrate production will be some 2,500 tpy, but the company did not give an estimate of 2009 tin output. As of March 31, 2009, the company had expended $213.2 million in construction costs of the total estimated $230 million.
