Green light for Pirquitas

With an operating permit now in hand, Sunshine Mining & Refining (SSC-N) is trying to arrange financing to develop its Pirquitas silver-tin property in the northern Argentine province of Jujuy.

The company requires US$124 million to bring the mine to production and estimates that construction will last two years.

Sunshine hopes to finance the project through debt, which would increase the return on investment to more than 25%.

In May, Sunshine enlisted Barclays Capital and a division of the Standard Bank of London to help arrange the financing.

At full production, Pirquitas is expected to yield 9.2 million oz. silver per year at a cash operating cost of US$1.50 per oz. (including byproduct credits). The open-pit operation would process 6,600 tons per day in a combined gravity and flotation circuit to produce three concentrates, one

for silver, tin and zinc.

Reserves stand at 23.9 million tons averaging 4.9 oz. silver, 0.33% tin and 0.57% zinc, equivalent to 116 million oz. silver, 156 million lbs. tin

and 272 million lbs. zinc. The deposit remains open at depth and along strike.