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Pirquitas Project, Jujuy Province, Argentina

  • Pirquitas 43-101 Report


    (Espanol)

  • Project Animation


    (15MB Quicktime)

    (3MB Windows Media)

The Pirquitas Project is a wholly-owned primary silver project located in northwestern Argentina near the borders of Bolivia and Chile. In a report dated April 28, 2006, as amended May 9, 2006, prepared by Hatch Ltd., in conjunction with Mine Development Associates, Inc., and in accordance with the standards of NI 43-101, the Pirquitas Project was estimated to have proven and probable reserves of 107.1 million ounces of silver, based on a silver price of US$5.35 per ounce. The 2006 Report estimated project production of an average of 9.6 million ounces of silver per year over an 8.8-year mine life. Project capital costs over the operating life of the project were estimated to be US$146 million.

In October 2006, we made the decision to proceed with production at the Pirquitas Project. Techint Compania Tecnica International Saci was awarded the engineering, procurement and construction management contract for the project. Based on detailed engineering work undertaken by Techint during 2007, the capital cost to complete construction of the project is now estimated to be US$220 million.

In November 2007, we updated the reserve estimate for the Pirquitas Project using a silver price of US$9.35 per ounce. The updated reserve estimate used the same mine plan and pit shell as the 2006 Report and factored in the updated capital cost estimate for the project. The Pirquitas Project is now estimated to have proven and probable reserves of 136.0 million ounces of silver, measured and indicated resources of 47.2 million ounces of silver and it is estimated that project production will average approximately 10.9 million ounces of silver per year over a 10-year mine life.

The Pirquitas Project is located in an historic mining district and is accessible by public roads from two directions. We have secured all material surface and water rights, as well as all material permits necessary for the development and operation of the Pirquitas Project. The project's energy requirements will be met by gas-powered generation utilizing an existing natural gas supply line located approximately 36 kilometers to the south of the project. The project site is located approximately 850 kilometers by road from the port of Antofagasta in Chile and approximately 2,000 kilometers by road from the port of Buenos Aires in Argentina.

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