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Message: Silver Standard Reports Second Quarter 2009 Results

Silver Standard Reports Second Quarter 2009 Results

posted on Aug 06, 2009 08:15PM

pirquitas is experiencing the usual start up problems, so now they only expect to produce 3 million ounces of silver this year, with full production of 10 million ounces in 2010. the other announcements are a new resource estimate expected at san luis this quarter, and they now have 6 drills turning at snowfield:

Update on Pirquitas Mine Ramp-up

During the second quarter, the company commenced the ramp-up of the plant by feeding historical jig tailings to the ball mill as planned. However, start-up issues were encountered, which resulted in delays. Following resolution of these start-up issues, operations were adversely affected by unseasonably cold weather until additional cold weather protective systems were installed. The ball mill and flotation circuits are now operating consistently and producing concentrate with the first concentrate shipment of 100 tonnes occurring at the end of July. The focus for this quarter is commissioning the crushing and tin circuits and improving silver concentrate grade.

With the delays caused by start-up issues, Pirquitas is now expected to produce approximately 3 million ounces of silver in 2009 and to achieve full production in 2010 of approximately 10 million ounces of silver.

San Luis, Ancash, Peru

A feasibility study on placing the project into production is underway and is expected to be completed in the third quarter of 2009. An environmental impact study has also been initiated and is scheduled to be completed by the end of 2009. The joint venture is currently negotiating long-term land access agreements for the project.

As of June 30, 2009, the company had expended $221 million in construction costs. With the delays in start up, capital costs are now estimated to be $233 million.

Snowfield, British Columbia, Canada

The Snowfield Project hosts a significant gold resource comprised of measured and indicated gold resources totalling 4,362,000 ounces and inferred gold resources of 14,276,000 ounces using a cut-off grade of 0.5 grams of gold-equivalent per tonne. There are currently six drills on site to complete at least 20,000 meters of diamond drilling this year. Results will be reported as received and a resource update is expected in the fourth quarter.

http://finance.yahoo.com/news/Silver-Standard-Reports-iw-3653854587.html?x=0&.v=1

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