TORONTO (miningweekly.com) – Vancouver-based Silver Standard Resources will begin producing concentrate at its Pirquitas mine, in Argentina, during the current quarter, the company confirmed on Wednesday.

Operations will continue to ramp up through the second quarter, and Pirquitas is expected to produce more than six-million ounces of silver this year, and more than ten-million ounces in 2010.

This production will initially come from the processing of more than 400 000 t of run-of-mine grade jig tails from historic operations, and then transition to material from the openpit.

So far, about five-million tons of material has been moved from the Pirquitas openpit and stockpiling of ore is under way, Silver Standard reported.

At current metal prices, the silver and tin concentrates account for over 95% of the anticipated revenue from the mine, and so the silver circuit will be optimised first, followed by the tin circuit.

A decision to complete the zinc circuit will depend on the results of metallurgical testwork to be received on increasing silver recoveries.

“Process equipment purchased for the zinc circuit may be better served increasing the silver recovery,” the firm commented.

Silver Standard indicated last year that wage inflation and higher input costs were pushing the capital cost of the mine upwards, and now expects that the mine will cost $230-million, compared with a 2007 estimate of $220-million.

The Pirquitas deposit contains proven and probable silver reserves of 195,1-million ounces, 159,2-million pounds of tin reserves and 548,5-million pounds of zinc reserves, according to a May 2008 estimate.

The mine is expected to produce upwards of 10,9-million ounces of silver; 2 500 t of tin and 6 500 t of zinc a year, over a 14,5-year life.

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