Sunshine Finds Promise In Argentina

Sunshine Mining and Refining Co. will double its exploration efforts at a promising silver and tin mine in Argentina.

The Pirquitas mine in northwest Argentina contains up to 312 million ounces of silver and 463 million pounds of tin, far more than what Sunshine had originally thought when it bought the mine last fall.

The company will spend $2.8 million in the next six months to confirm that the metals lie on the site through more drilling. This adds to the $1.3 million the company has already spent.

Sunshine owns and operates the Sunshine Mine in Idaho’s Silver Valley. It announced plans to double production there early this year. Recently, it has begun aggressive exploration in South America.

The company hopes to find more encouraging results at Pirquitas and complete a feasibility study late this year or in early 1997.

Not all exploration produces results like the ones at Pirquitas. Sunshine spent $1.1 million at its Huemules joint venture, but didn’t find enough gold there to meet its standard. The company has ended its work there.

Drilling continues at another Sunshine property in Argentina, Cerro Choique, where the company has found more gold. The exploration there should be complete later this year, Sunshine said in a release.

On the domestic front, Sunshine will also begin exploration at its Grizzly Bear property in Colorado. The mine previously produced gold and silver. The company believes more might be nearby.

Sunshine, which emerged from bankruptcy earlier this decade, has taken this aggressive exploration strategy in hopes of becoming a large-scale silver producer.

, DataTimes