TORONTO (miningweekly.com) – Silver production from the San Jose mine, in Argentina, increased 14% year-on-year in 2009, to just under five-million ounces, while gold production jumped 42%, to 77 070 oz, TSX-listed Minera Andes reported this week.

Minera Andes owns 49% of the mine and LSE-listed Hochschild Mining holds the balance.

In the fourth quarter, the operation produced 1,03-million ounces of silver and 19 960 oz of gold, which represented a 22% decline in silver production while gold output rose 15%.

Production was affected by a loss of 15 days in October due to labour disruptions, as well as lower head grades for silver, Minera Andes said.

Since then, the labour issues have been settled, and the mine is currently operating closer to capacity.

There were 23 lost production days during 2009 – 15 days in October, five days in September and three days in May, the company reported.

In June, the mine achieved a key milestone when the Kospi vein, which is characterised by higher gold grades, was brought into production at the end of June.

This helped boost gold production levels from the operation.

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