Sunshine Will Link Two Mines
Sunshine Mining Co. is hoping to find new silver reserves by linking two Silver Valley mines.
Preliminary work began Monday on an underground ramp to connect the Sunshine Mine with the nearby ConSil mine. Blasting and drilling will begin in earnest in mid- to late May.
“We believe there’s the potential for a couple of major veins that could support another mining operation,” said Harry Cougher, Sunshine’s general manager in Kellogg.
“There are areas that have been producers in the past that we want to follow up on geologically.”
The ramp will allow the company to look more closely at a block of ground 3,000 to 4,000 feet long and 1,000 feet wide, Cougher said.
The ramp will cost about $2 million to construct. Financing will come from Sunshine’s $5 million, 1998 exploration and development budget, Cougher said.
Nine additional workers have been hired for the ramp project, but Cougher but doesn’t foresee any immediate work force expansion.
Company officials will know more about the quality of the veins after six to 18 months of exploration, he said.
The ramp will allow exploration of ConSil deposits, and provide better access to old areas of the Sunshine Mine.
The company purchased the ConSil Mine in 1995. The mine has been explored for about 40 years, but never has sustained much production, Cougher said.
Silver above $6 per ounce is prompting Sunshine Mining to look for new reserves. Higher prices, coinciding with increased production, have been a boon to the company and its employees, Cougher said.
The company essentially broke even during the first quarter of this year, after losing $5.9 million during the first quarter last year.
Worker wages, which are tied to silver prices, have also risen 75 cents per hour.
“It sure has an impact on morale, I’ll tell you,” Cougher said.
Wages rise when the three-month average price of silver tops $5.50 per month. However, this is only the second time in 10 years that silver prices have been high enough for the rate increase to kick in, Cougher said.