TORONTO (miningweekly.com) – Silver miner Tahoe Resources, which operates the Escobal silver/lead/zinc mine, in south-eastern Guatemala, has reported an 18% increase in the compliant measured and indicated resources at its flagship operation, supported by a feasibility study.
The TSX- and NYSE-listed miner said on Wednesday that the combined measured and indicated resources were now 433.9-million silver ounces, with an average grade of 346 g/t, a significant increase compared with the resources of the January 2012 resource estimate. The inferred resources were 9.3-million silver ounces, at an average grade of 224 g/t.
The proven and probable reserves of 31.4-million tonnes, at an average silver grade of 347 g/t, accounted for 350.5-million silver ounces contained in the mine plan.
Tahoe now expected to produce 19.1-million silver ounces and 22.4-million silver equivalent ounces, on average, over the first ten years of the mine life.
As of July 1, the remaining capital costs to expand the production rate from 3 500 t/d to 4 500 t/d were estimated at $24.3-million. All expansion capital was expected to be funded by the existing cash balance and projected future cash flow.
Escobal achieved commercial production in January and Tahoe’s goal was to produce 20-million ounces of silver in this first year of production.
“Escobal forms a strong economic foundation for the future growth of the company,” Tahoe CEO and vice chairperson Kevin McArthur commented.
The silver miner's TSX-listed stock fell 5.825 on Wednesday to C$18.28 apiece, having gained 9% from the start of the year.