The Pitarrilla Project is a 100% owned grassroots discovery made by Silver Standard in 2002, located approximately 160 kilometres north-northwest of the city of Durango within the State of Durango, Mexico. A paved roadway extends to within 47 kilometres of the plant site. Pitarrilla is a silver, lead, and zinc project, which will consist of a large open-pit mainly recovering oxidized ores in the early years of production and then predominantly sulphide ores from the deeper parts of the deposit.

Silver Standard and M3 Engineering and Technology Corporation completed a Feasibility Study on the Pitarrilla Project on December14, 2012. Highlights of the Feasibility Study include:

  • Mineral reserves: Probable Mineral Reserves of 479 million ounces of silver, approximately 5.2 times the 91.7 million ounces previously reported1. Probable Mineral Reserves are estimated to contain 1,014 million pounds of lead at a grade of 0.29% and 2,722 million pounds of zinc at a grade of 0.79%.
  • Long-life and high production: A 32-year project producing an average of 15 million ounces of silver per year during the first 18 years of production.
  • Robust project economics: An after-tax net present value of $737 million at base case metal prices and $1.7 billion at spot metal prices. An after-tax internal rate of return of 12.8% at base case metal prices and 21.2% at spot prices2.
  • Capital expenditures: Total construction costs estimated at $741 million, including $157 million of pre-production operating costs and $131 million of pre-production revenue.
  • Low technical risk: Utilizes standard truck-and-shovel open-pit mining methods and well-established flotation and leach processing methods.

Andrew W. Sharp, B.Eng, FAusIMM, an employee of the company, is the Qualified Person who has approved the foregoing disclosure on the Pitarrilla Project. Please refer to the technical report entitled "NI 43-101 Technical Report on the Pitarrilla Project, Durango State, Mexico" dated December 14, 2012, a link to which is provided above.

This page contains forward-looking statements. Please see the following link: Legal.

1 See the technical report dated September 21, 2009 entitled "NI 43-101 Technical Report – Pitarrilla Property Pre-feasibility Study", available under the company's profile on SEDAR.

2 Base case silver price is $27.50 per ounce in the final pre-production year and the first two years of production, and $25 per ounce thereafter. Spot silver price is $34.13 per ounce.



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