Sunshine Expands International Base With Argentina Mine

Sunshine Mining & Refining Co. has purchased a silver and tin mine in Argentina in a major move to expand its international operations.

Boise-based Sunshine’s subsidiary company, Sunshine Argentina Inc., paid $1.7 million for the mine and its workings at an auction Nov. 20, according to William Davis, spokesman for Sunshine.

The Pirquitas mine, located in the Province of Jujuy in northern Argentina, produced silver and tin from 1936 until 1990.

Recent exploratory drilling indicated the mine contains about 22 million ounces of silver and 41.3 million ounces of tin.

Sunshine will begin a closely-spaced drilling program to verify the ore reserves. The drilling will take most of 1996, and the company could decide whether or not to bring the mine into production by early 1997, Davis said.

Pirquitas is an underground mine, but would be processed using low-cost open pit techniques, Davis said.

The property also contains a crushing plant, flotation tanks, housing and other facilities.

Like other mining companies, Sunshine has looked toward South America for new mining opportunities. With exploration offices in Peru and Argentina, the company has several properties it continues to look at in the region.

“This is one of the one or two projects that’s most advanced,” Davis said from Boise. “We’ll be getting real active in the drilling.”

The Sunshine Argentina subsidiary employs nine people, Davis said.

Sunshine owns and operates the Sunshine Mine in Idaho’s Silver Valley. The mine has shown encouraging results in its West Chance area, which could boost the mine’s production.

, DataTimes