PROJECTS
San Luis
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Technical Report for the San Luis Project Feasibility Study (June 2010)
(4.98MB PDF) -
Updated Mineral Resource Estimate, San Luis Project (January 2009)
(5.95MB PDF)
The high-grade, gold-silver Ayelén vein system of the San Luis Project in central Peru has the potential to become Silver Standard's next development project. The San Luis Project is located approximately 25 kilometers northwest of Barrick Gold Corporation's Pierina gold mine, and can be accessed by two all-weather roads. A feasibility study on placing the project into production was completed in the second quarter of 2010.
The feasibility study estimates a net present value of $39.2 million (5% discount rate) and internal rate of return of 26.5% using base case prices of $800/ounce gold and $12.50/ounce silver. Capital expenditures are estimated to be $90.4 million (+/- 15%) for a 400 tonne/day underground mine with average annual production of 78,000 ounces of gold and 1.86 million ounces of silver over its 3.5 year mine life. The base case financial summary assumes recovered gold production of 270,031 ounces and silver production of 6,454,810 ounces over the life of the mine and operating cost for the mine is estimated at $160.83/tonne of ore processed.
With completion of the feasibility study, Silver Standard now has a 70% interest vested in the joint venture with Esperanza Silver Corporation. We have the right to increase our interest to 80% by placing the San Luis Project to production.
For details on the reserves and resources of the San Luis Project, view the current Mineral Reserves & Resources Summary (16 kb pdf).
