Sunshine Stops Work On Ramp Construction Project Would Have Linked Two Mines In Silver Valley

Falling silver prices prompted Sunshine Mining and Refining Co. to halt work on a $2 million ramp project that would have connected two Silver Valley mines.

“It’s still a promising project. Just not right now, today,” said Harry Cougher, Sunshine’s general manager in Kellogg.

The ramp would have allowed for movement of equipment between the Sunshine and the ConSil mines, and eventual exploration of the intermediate area for future mining.

But the project, begun when silver topped $6 an ounce, isn’t economical today, Cougher said.

Sunshine Mining halted construction work to conserve cash reserves while silver prices are low. “We’re just like anyone else working out of a checkbook,” he said.

Nine Sunshine employees working on the project will be reassigned.

Halting the work will also help the company increase silver production, Cougher added. The company expected to produce 6 million ounces out of the Sunshine - its only operating mine - this year.

However, the construction work actually slowed some of the other mine operations. The mill will begin running seven days a week to reduce a backlog of unprocessed ore, Cougher said. But the mine will still fall a bit short of the 6 million ounce goal, he said.

Sunshine Mine has also ended a diamond drilling exploration project at the ConSil Mine.