Silver Standard Resources reports that it is on schedule to start concentrate production this quarter at its silver-tin-zinc Pirquitas mine in Jujuy, Argentina. The mine will have an annual production capacity of 10 million ounces of silver and some 2,500 tonnes of tin-in-concentrate. In a statement the company noted that “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 decision on whether or when to commence zinc production will be taken later.
Silver Standard has updated its capital and operating cost estimates from those published in November 2007. With inflation exceeding company estimates, the estimated cost to complete the construction of the mine has increased to US$230 million or 5% over the 2007 estimate. With eight months of mining experience and in-country administration, the company estimates that mining, milling and administration costs will now average US$26/tonne over the life of the mine. The company says it will produce 6 million ounces of silver in 2009 and will release more details on its production plans in mid-March.
