Silver Standard first mine update

Silver Standard, the Vancouver-based prospector, plans to start operations at its Pirquitas silver mine in northern Argentina, during the fourth quarter of 2008.

This will mark the transition of the company into a significant silver producer with only one mine, although the Pirquitas prospect forms part of a portfolio of Silver Standard’s properties across Argentina, Mexico, Chile, Peru and Canada.

A reserve update on the $146 million silver-tin-zinc project will be published in the fourth quarter of 2007.

Proven reserves stand at 20.5 million ounces of silver; probable reserves of 86.6 million ounces, and measured and indicated ounces totalling 26.7 million.

The current 10-year life of the mine is expected to be extended with the release of the reserve update and an annual production of 9.6 million ounces of silver is planned at a total cost of $4.53/oz.

Pirquitas will be an open-pit mine and its zinc, tin and silver concentrates will be delivered to the Port of Antofagasta.

The company’s chief executive, Robert Quartermain, is currently chairman of the Silver Institute, which represents the world’s silver producers.

Mr Quartermain is keen to expand membership in the organization, while improving education about the uses of silver, and the marketing and consumption of the precious metals.

In 2006, Silver Standard began drilling in what analysts expect to be the company’s next mine, at San Luis, in central Peru.

The project is a joint venture with Esperanza Silver Corporation and high-grade gold-silver prospects have been discovered.