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Pirquitas, Jujuy Province, Argentina

The Pirquitas mine is Silver Standard's first major mining operation. Production ramp-up activities have continued through 2009, and the first silver concentrate shipment of 100 tonnes took place in July. At full production the mine will produce an average of approximately ten million ounces of silver and 2,500 tonnes of tin annually, ranking Pirquitas among the largest primary silver mines in the world.

Pirquitas is located in northern Argentina in the province of Jujuy. The property is at an elevation of 4,100 meters and is accessible by two all-weather roads. The mine is powered primarily by natural gas, which is supplied by a 42 kilometer-long natural gas pipeline installed in 2008 from the mine to an existing Trans-Andean pipeline. The mine is operating as a conventional open pit (surface) mine utilizing 100 tonne trucks and 12 m3 loaders.

Continuous open pit mine operations have been underway since July 2008. The pit ore is currently being stockpiled and the 400,000 tonnes of run-of-mine grade jig tails from historic operations is providing the first feed to the mill.

Ore is crushed and treated in a conventional mineral flotation plant. The silver circuit is being optimized and the tin circuit is expected to come online in Q3 2009. The concentrates produced from the plant will be shipped to various smelters around the world.

At full production, the mine will operate continuously throughout the year and employ over 550 people.