TORONTO (miningweekly.com) – TSX- and NYSE-listed Tahoe Resources has started shipping silver concentrate to smelters from its Escobal mine, in Guatemala, saying the first container of bagged concentrate was placed on a ship on Tuesday.
The company’s announcement was significant owing to the low current silver prices having driven many juniors out of the race to production.
“This small concentrate shipment represents a tremendous milestone for the company. The Guatemalan team is delivering on the promises made in 2010 to responsibly construct and operate a world-scale silver mine within three years of design, permitting and financing,” Tahoe president and CEO Kevin McArthur said.
Cash and cash equivalents on September 30, stood at $39.2-million, which Tahoe estimated would be adequate to carry the mine through to full production.
Initial mill commissioning began in September, and Tahoe expected to ramp up production to 3 500 t/d by year-end and to be in full production by early 2014. The company noted that it was currently developing the framework to determine when full production would be achieved.
The mine is expected to produce about 20-million ounces of silver in its first full year of production and Tahoe had reached agreements on commercial terms with several smelters, all of which were interested in long-term contracts.
Despite the terms of these contracts being confidential at this time, Tahoe said they were consistent with those indicated in the May 2012 preliminary economic assessment.