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Feasibility Study Update

  • Pirquitas 43-101 Report


    (Espanol)

  • Project Animation


    (15MB Quicktime)

    (3MB Windows Media)

  • Pirquitas Process Facility Animation


    (13MB Windows Media)

In April of 2006, Hatch Ltd., an international engineering firm, in conjunction with Mine Development Associates, Inc. of Reno, Nevada completed an update of the feasibility study on Pirquitas prepared by Jacobs Engineering and Winters Group in 1999/2000. With base case metal prices of US$5.35 per ounce silver, US$2.75 per pound tin and US$0.42 per pound zinc (approximate 20-year average prices to March 31, 2006), the project was estimated to host proven and probable reserves of 107.1 million ounces of silver, 40,360 tonnes of tin and 125,116 tonnes of zinc, and was estimated to produce an average of 9.6 million ounces of silver, 2,600 tonnes of tin and 6,700 tonnes of zinc per year over an 8.8 year mine life. Capital costs were estimated to be US$146 million plus value added tax.

In November of 2007, we announced an update to the Pirquitas project reserves and capital costs using higher metal prices and more detailed engineering analysis. With base case metal prices of US$9.35/ounce silver, US$3.65/lb tin and US$1.00/lb zinc (approximate average prices for two years ending December 31, 2006), the project now hosts 136 million ounces of silver, an increase of 27%; 113 million pounds of tin, an increase of 29%; and 414 million pounds of zinc, an increase of 63%. Tonnes of ore have increased by 13%. The updated reserves were calculated using the same pit shell and database as the initial Pirquitas proven and probable reserves. The updated capital costs to complete the project are US$220 million plus value-added tax. The increase in capital costs is a result of increases in global construction materials costs and inflation pressures in Argentina, particularly labour. In addition to costs increases, a portion of the capital increase involves an allowance of US$13.6 million related to revised layout and some equipment re-sizing to accommodate future expansion of the plant.

As of December 31, 2007, a total of US$53 million has been spent on the construction of the project, with another US$61 million committed to equipment purchase orders. This leaves a balance of US$106 million to be spent to complete the project in 2008, within which a contingency of US$15 million dollars is included.

For details on the reserves and resources of the Pirquitas Project,view the current Resource Summary (312 kb pdf).