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Silver Standard has high hopes for Snowfield gold project in B.C.
Silver Standard reports that the combination of two adjacent northern British Columbia gold projects holds the potential of "a world class deposit."
Author: Dorothy Kosich
Posted: Wednesday , 20 May 2009
RENO, NV -
The growing strength of gold and copper resources discovered on the Seabridge Mitchell zone-- combined with Silver Standard's own five-fold increase in gold resources at the adjacent Snowfield Gold project-has prompted Silver Standard to step up its drilling program in northern British Columbia.
In its 43-101 resource estimate for Mitchell in 2008, Seabridge estimated 16.3 million ounces of gold and 2.9 billion pounds of copper in the indicated category. Meanwhile, Silver Standard reported measured and indicated gold resources of 4,362,000 ounces earlier this year for its nearby Snowfield project.
Silver Standard CEO Robert Quartermain told analysts Tuesday that the combination of the two properties holds "a world class deposit." Silver Standard plans at least 20,000 meters of follow-up drilling this year to upgrade inferred resources on Snowfield Gold.
Quartermain noted that the decision of the Government of British Columbia to move forward with the Northwest Transmission Line along Highway 37 will provide power to mining projects in the area.
In a conference call with analysts to discuss financial results, Silver Standard Senior Vice President for Operations George N. Paspalas said he expected the first shipment of silver concentrate later this month from the new Pirquitas Mine in Argentina. Pirquitas is expected to produce 6 million ounces of silver this year and achieve full production of 10 million ounces in 2010.
Paspalas said the company's long-term strategic approach at Pirquitas to hire early, hire local and then train "has worked very well on the property" as well as "enable us to build a very good platform of very good community and social relations for the future of the mine."
Silver Standard sold 5.8 million shares at $17 per share during the first quarter which resulted in net proceeds of $93.4 million.
The company reported a first-quarter 2009 loss of $2.6 million or negative 4-cents per share, compared to a net profit of $2.3 million (4-cents per share) for the first-quarter 2008.
