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Silver Standard Resources Inc. provided an update on the status of operations at the Pirquitas mine in Jujuy, Argentina and announced guidance for 2012.
"We have taken a number of important steps at Pirquitas that positions us well for 2012," said John Smith, President and CEO of Silver Standard. "Our focus at the mine is to continue to provide consistent quarter on quarter performance, cost management and brown-fields exploration." The Pirquitas mine including the ball mill, operated continuously since its re-start on November 6, 2011. Since December 1, 2011, milling has exceeded design rates averaging above 4,800 tonnes per day. Following a full rebuild with factory OEM parts, the mill's gearbox continues to operate without vibrations. Realized silver recoveries continue to exceed design expectations of 78%. For the year 2011, the Pirquitas mine produced 7.1 million ounces silver, a 12% increase from 2010, despite unplanned plant down time of eleven weeks throughout 2011. Zinc production for 2011 totaled 10.1 million pounds and achieved forecast. Silver Standard's production guidance and cost estimates for 2012 are as follows: - Produce 8.2 to 8.5 million ounces of silver;
- Produce 10.5 to 11.5 million pounds of zinc; and
- Direct mining cost of $11.85 per ounce of silver based on a nominal direct mining cost of $100.8 million.
Total cash cost and total production cost per ounce of silver will be announced after silver and zinc concentrate sales agreements are concluded in the first quarter 2012. The Company expects to complete delivery of the sale of 2,000 tonnes of silver concentrate in January 2012 and has contracted for additional trial lot sales with potential long-term customers. Negotiations for additional spot silver concentrate sales of 1,000 tonnes with an option to sell an additional 1,000 tonnes are near completion. Long-term silver concentrate sales discussions are progressing with Asian, European and North American smelters. Discussions to date for long-term sales agreements have been positive and are expected to conclude in the first quarter 2012. |
