Sunshine Mine Reaches Full Output

The Sunshine Mine at Kellogg has returned to full production for the first time in almost six years, and output could reach 5 million ounces of silver by year-end.

John Simko, chairman of Sunshine Mining and Refining Co., said the mine’s 291 workers are moving 1,000 tons of ore up the Jewell Shaft each day from the West Chance area.

That zone, discovered in 1992, will produce virtually all the ore that will be taken from the more than century-old Sunshine mine this year, he said.

First-quarter production was just over 900,000 ounces, the most since June 1991. By comparison, only 554,000 ounces were produced in the first quarter of 1996.

Simko predicted total output by the end of the year will be the highest since 1990.

Although the mine remains unprofitable at current silver prices, he said, cash flow should be positive with even a modest upturn over the $5-per-ounce level.

“We’re hoping the grades improve,” Simko added.

Reserves and resources in the West Chance area are estimated at 68 million ounces of silver.

The deposit also contains lead, which has forced the company to ship the ore to Montana for refining instead of processing the material at its own on-site mill.

, DataTimes