Silver Standard Pirquitas Ball Mill and Sales Contract
VANCOUVER, BC - Silver Standard Resources Inc. reported on the status of production at the Pirquitas mine in Jujuy province, Argentina.
The Pirquitas ball mill was shut down September 24, 2011, due to the condition of the ball mill gearbox and repairs on the unit were completed on October 10, 2011. The gearbox was tested under load and initially operated the ball mill; however continuous condition monitoring indicated it was functioning outside acceptable parameters.
To improve ball mill reliability, the decision was subsequently made to rebuild the gearbox with all new internal parts recently received from Siemens AG. This work is on-going and is scheduled to be complete mid-November. A separate new spare gearbox is now scheduled for delivery in January 2012 and will provide added reliability and redundancy.
Silver concentrate sales have resumed on a spot basis. Spot silver concentrate sales are expected to continue through the second quarter of 2012 until long-term contracts are finalized. Several potential silver concentrate buyers, including smelters, have expressed interest and are analyzing samples. Long-term silver concentrate negotiations are expected to conclude second quarter 2012, in-line with seasonal re-negotiation talks. Zinc concentrate sales have continued as projected.