Adam Hamilton talks on why silver is in crisis:
Silver, an asset which many investors thought would thrive during a financial-market panic, has been scourged mercilessly. After briefly surging above $20 in March, it nonchalantly traded between $16 and $19 or so for the next 5 months. Silver was on top of the world, consolidating high, and all looked well.
Rest of story...
Silver futures for December delivery today dropped to 16 cents, or 1.7 percent, to $9.33 an ounce.
Friday, November 21, 2008
iShares Silver Trust Scheduled to Move to NYSE Arca
SAN FRANCISCO, CA, Nov 21, 2008 (MARKET WIRE via COMTEX) -- Barclays Global Investors (BGI), one of the world's largest institutional asset managers, today announced that the iShares(R) Silver Trust (ticker: SLV) will transfer from the NYSE Alternext US LLC (formerly, the American Stock Exchange) to the NYSE Arca listing and trading platform on December 4, 2008. The move is following the merger of the American Stock Exchange and NYSE EuroNext, the holding company for NYSE Arca. No action is needed by shareholders.
Barclays Global Investors International, Inc. is the Trust's sponsor.
Barclays Global Investors International, Inc. (BGII) is the sponsor of the iShares Silver Trust ("Silver Trust"). Barclays Global Investors Services (BGIS) assists in the marketing of the Silver Trust. BGII and BGIS are affiliates of Barclays Global Investors, N.A., which is a majority-owned subsidiary of Barclays Bank PLC.
Investing involves risk, including possible loss of principal. The iShares Silver Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Silver Trust are not subject to the same regulatory requirements as mutual funds. Because shares of the iShares Silver Trust are expected to reflect the price of the silver held by the Trust, the market price of the shares will be as unpredictable as the price of silver has historically been. Additionally, shares of the Silver Trust are bought and sold at market price (not NAV). Brokerage commissions will reduce returns.
Shares of the Silver Trust are created to reflect, at any given time, the market price of silver owned by the trust at that time less the trust's expenses and liabilities. The price received upon the sale of shares of the Silver Trust, which trade at market price, may be more or less than the value of the silver represented by them. If an investor sells the shares at a time when no active market for them exists, such lack of an active market will most likely adversely affect the price received for the shares. For a more complete discussion of risk factors relative to the Silver Trust, carefully read the prospectus.
Following an investment in the iShares Silver Trust, several factors may have the effect of causing a decline in the prices of silver and a corresponding decline in the price of the shares. Among them: (i) A change in economic conditions, such as a recession, can adversely affect the price of silver. Silver is used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the iShares. (ii) A significant change in the attitude of speculators and investors towards silver. Should the speculative community take a negative view towards silver, a decline in world silver prices could occur, negatively impacting the price of the shares. (iii) A significant increase in silver price hedging activity by silver producers. Traditionally, silver producers have not hedged to the same extent as other producers of precious metals (gold, for example) do. Should there be an increase in the level of hedge activity of silver producing companies, it could cause a decline in world silver prices, adversely affecting the price of the shares.
The amount of silver represented by shares of the iShares Silver Trust will decrease over the life of the trust due to sales necessary to pay the sponsor's fee and trust expenses. Without increase in the price of silver sufficient to compensate for that decrease, the price of the shares will also decline, and investors will lose money on their investment. The Silver Trust will have limited duration. The liquidation of the trust may occur at a time when the disposition of the trust's silver will result in losses to investors.
Although BGII believes that market makers will take advantage of differences between the NAV and the trading price of Silver Trust shares through arbitrage opportunities, BGII cannot guarantee that they will do so. BGII cannot guarantee an active trading market for the shares, which may result in losses on your investment at the time of disposition of your shares. The value of the shares of the Silver Trust will be adversely affected if silver owned by the trust is lost or damaged in circumstances in which the trust is not in a position to recover the corresponding loss. The Silver Trust is a passive investment vehicle. This means that the value of your shares may be adversely affected by trust losses that, if the trust had been actively managed, it might have been possible to avoid.
Shares of the iShares Silver Trust are not deposits or other obligations of or guaranteed by Barclays Global Investors, N.A. or its affiliates ("BGI"), and are not insured by the Federal deposit Insurance Corporation or any other governmental agency.
When comparing commodities and the iShares Silver Trust, it should be remembered that management fees associated with the Trust are not borne by investors in individual commodities. Buying and selling shares of the iShares Silver Trust will result in brokerage commissions. Because the expenses involved in an investment in physical silver will be dispersed among all holders of shares of the Silver Trust, an investment in the Silver Trust may represent a cost-efficient alternative to investments in silver for investors not otherwise able to participate directly in the market for physical silver.
Although shares of the iShares Silver Trust may be bought or sold on the exchange through any brokerage account, shares are not redeemable except in large aggregated units called Baskets.
Copyright2008 Barclays Global Investors, N.A. All rights reserved. iShares(R) is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
SOURCE: Barclays Global Investors
Copyright 2008 Market Wire, All rights reserved.
Barclays Global Investors International, Inc. is the Trust's sponsor.
Barclays Global Investors International, Inc. (BGII) is the sponsor of the iShares Silver Trust ("Silver Trust"). Barclays Global Investors Services (BGIS) assists in the marketing of the Silver Trust. BGII and BGIS are affiliates of Barclays Global Investors, N.A., which is a majority-owned subsidiary of Barclays Bank PLC.
Investing involves risk, including possible loss of principal. The iShares Silver Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Silver Trust are not subject to the same regulatory requirements as mutual funds. Because shares of the iShares Silver Trust are expected to reflect the price of the silver held by the Trust, the market price of the shares will be as unpredictable as the price of silver has historically been. Additionally, shares of the Silver Trust are bought and sold at market price (not NAV). Brokerage commissions will reduce returns.
Shares of the Silver Trust are created to reflect, at any given time, the market price of silver owned by the trust at that time less the trust's expenses and liabilities. The price received upon the sale of shares of the Silver Trust, which trade at market price, may be more or less than the value of the silver represented by them. If an investor sells the shares at a time when no active market for them exists, such lack of an active market will most likely adversely affect the price received for the shares. For a more complete discussion of risk factors relative to the Silver Trust, carefully read the prospectus.
Following an investment in the iShares Silver Trust, several factors may have the effect of causing a decline in the prices of silver and a corresponding decline in the price of the shares. Among them: (i) A change in economic conditions, such as a recession, can adversely affect the price of silver. Silver is used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the iShares. (ii) A significant change in the attitude of speculators and investors towards silver. Should the speculative community take a negative view towards silver, a decline in world silver prices could occur, negatively impacting the price of the shares. (iii) A significant increase in silver price hedging activity by silver producers. Traditionally, silver producers have not hedged to the same extent as other producers of precious metals (gold, for example) do. Should there be an increase in the level of hedge activity of silver producing companies, it could cause a decline in world silver prices, adversely affecting the price of the shares.
The amount of silver represented by shares of the iShares Silver Trust will decrease over the life of the trust due to sales necessary to pay the sponsor's fee and trust expenses. Without increase in the price of silver sufficient to compensate for that decrease, the price of the shares will also decline, and investors will lose money on their investment. The Silver Trust will have limited duration. The liquidation of the trust may occur at a time when the disposition of the trust's silver will result in losses to investors.
Although BGII believes that market makers will take advantage of differences between the NAV and the trading price of Silver Trust shares through arbitrage opportunities, BGII cannot guarantee that they will do so. BGII cannot guarantee an active trading market for the shares, which may result in losses on your investment at the time of disposition of your shares. The value of the shares of the Silver Trust will be adversely affected if silver owned by the trust is lost or damaged in circumstances in which the trust is not in a position to recover the corresponding loss. The Silver Trust is a passive investment vehicle. This means that the value of your shares may be adversely affected by trust losses that, if the trust had been actively managed, it might have been possible to avoid.
Shares of the iShares Silver Trust are not deposits or other obligations of or guaranteed by Barclays Global Investors, N.A. or its affiliates ("BGI"), and are not insured by the Federal deposit Insurance Corporation or any other governmental agency.
When comparing commodities and the iShares Silver Trust, it should be remembered that management fees associated with the Trust are not borne by investors in individual commodities. Buying and selling shares of the iShares Silver Trust will result in brokerage commissions. Because the expenses involved in an investment in physical silver will be dispersed among all holders of shares of the Silver Trust, an investment in the Silver Trust may represent a cost-efficient alternative to investments in silver for investors not otherwise able to participate directly in the market for physical silver.
Although shares of the iShares Silver Trust may be bought or sold on the exchange through any brokerage account, shares are not redeemable except in large aggregated units called Baskets.
Copyright2008 Barclays Global Investors, N.A. All rights reserved. iShares(R) is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
SOURCE: Barclays Global Investors
Copyright 2008 Market Wire, All rights reserved.
Friday, November 14, 2008
Apex Silver Announces Letter of Intent for Sale of San Cristobal Mine to Sumitomo
Apex Silver Mines Limited (AMEX: SIL) today announced that it has entered into a non-binding letter of intent with Sumitomo Corporation providing for the sale of Apex Silver's interest in the San Cristóbal mine to Sumitomo for a cash purchase price of $22.5 million. Apex Silver would continue to manage the mine following the sale.
Sumitomo currently owns a 35% interest in the mine indirectly through Minera San Cristóbal, S.A., a subsidiary of Apex Silver (MSC). Sumitomo also has the right to convert outstanding borrowings under a $100 million line of credit extended to MSC by one of Sumitomo's subsidiaries into additional MSC equity interests. MSC has borrowed $82 million under this facility. If those borrowings were fully converted, Sumitomo would have an aggregate 53.6% indirect interest in the San Cristóbal mine.
Jeffrey G. Clevenger, President and Chief Executive Officer of Apex Silver, stated, "We are pleased that Apex Silver will continue to partner with Sumitomo at this world-class mine, and we look forward to a comprehensive resolution of the issues that the company has faced as a result of the current volatility in the commodity and financial markets."
Summary of Key Terms:
Sumitomo (or an affiliate) will purchase Apex's and its affiliates' remaining equity interests in MSC, shareholder loans to MSC and certain other assets for a cash purchase price of $22.5 million, payable at the closing of the sale. Sumitomo (or an affiliate) will assume the liabilities relating to the San Cristóbal mine, including borrowings under the project finance facility for the mine and certain related liabilities under metal derivatives positions, net of the $91 million restricted cash at Apex Silver that has been pledged as collateral for the derivatives positions.
Apex Silver Mines Corporation (ASMC), a wholly owned subsidiary of Apex Silver, will manage MSC for an annual fee to be determined, but that will be not less than $6 million and sufficient to cover ASMC's costs. ASMC will also be entitled to an annual incentive fee of up to $1.5 million based on achievement of benchmarks for operating efficiency mutually agreed by the parties. The management agreement will have a minimum term of 12 months, after which Sumitomo may terminate the agreement on six months' notice and ASMC may terminate on 12 months' notice. The agreement will also be subject to early termination in certain circumstances. Apex Silver will guarantee ASMC's performance.
Apex Silver will receive limited contingent value rights entitling it to participate in the appreciation of the value of the mine in certain circumstances.
The non-binding letter of intent is subject to significant conditions, including completion by Sumitomo of diligence, the preparation of definitive documentation, the approval by the board of directors of each party and the restructuring of the mine's project finance facility and metal derivatives positions and Apex Silver's convertible notes in a voluntary reorganization under chapter 11 of the U.S. Bankruptcy Code.
About Apex Silver
Apex Silver is a mining, exploration and development company. Its 65%-owned San Cristóbal mine is the world's largest development in silver and zinc. The ordinary shares of Apex Silver trade on the American Stock Exchange under the symbol "SIL."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the intention of Apex Silver to enter into a definitive agreement relating to the sale of Apex Silver's interest in the San Cristóbal mine and the restructuring of Apex Silver's capital structure and the expected continuation of Apex Silver as a management services and exploration company. These statements are subject to risks and uncertainties, including those relating to the ability of Apex Silver and Sumitomo to reach a definitive agreement on all terms of the sale, including terms relating to Apex Silver's management of the mine, and the risk that creditors of Apex Silver or the mine will not agree to a restructuring on terms satisfactory to Sumitomo. The ability of Apex Silver to achieve the contemplated sale could also be affected by other factors, including those relating to its operations such as further decreases in metals prices, whether and to what extent the financial markets continue to experience significant volatility; and political unrest and uncertainty in Bolivia. Apex Silver assumes any obligation to update this information.
CONTACT:
Apex Silver Mines Corporation
Jerry W. Danni
Sr. Vice President Corporate Affairs
(303) 839-5060
Sumitomo currently owns a 35% interest in the mine indirectly through Minera San Cristóbal, S.A., a subsidiary of Apex Silver (MSC). Sumitomo also has the right to convert outstanding borrowings under a $100 million line of credit extended to MSC by one of Sumitomo's subsidiaries into additional MSC equity interests. MSC has borrowed $82 million under this facility. If those borrowings were fully converted, Sumitomo would have an aggregate 53.6% indirect interest in the San Cristóbal mine.
Jeffrey G. Clevenger, President and Chief Executive Officer of Apex Silver, stated, "We are pleased that Apex Silver will continue to partner with Sumitomo at this world-class mine, and we look forward to a comprehensive resolution of the issues that the company has faced as a result of the current volatility in the commodity and financial markets."
Summary of Key Terms:
Sumitomo (or an affiliate) will purchase Apex's and its affiliates' remaining equity interests in MSC, shareholder loans to MSC and certain other assets for a cash purchase price of $22.5 million, payable at the closing of the sale. Sumitomo (or an affiliate) will assume the liabilities relating to the San Cristóbal mine, including borrowings under the project finance facility for the mine and certain related liabilities under metal derivatives positions, net of the $91 million restricted cash at Apex Silver that has been pledged as collateral for the derivatives positions.
Apex Silver Mines Corporation (ASMC), a wholly owned subsidiary of Apex Silver, will manage MSC for an annual fee to be determined, but that will be not less than $6 million and sufficient to cover ASMC's costs. ASMC will also be entitled to an annual incentive fee of up to $1.5 million based on achievement of benchmarks for operating efficiency mutually agreed by the parties. The management agreement will have a minimum term of 12 months, after which Sumitomo may terminate the agreement on six months' notice and ASMC may terminate on 12 months' notice. The agreement will also be subject to early termination in certain circumstances. Apex Silver will guarantee ASMC's performance.
Apex Silver will receive limited contingent value rights entitling it to participate in the appreciation of the value of the mine in certain circumstances.
The non-binding letter of intent is subject to significant conditions, including completion by Sumitomo of diligence, the preparation of definitive documentation, the approval by the board of directors of each party and the restructuring of the mine's project finance facility and metal derivatives positions and Apex Silver's convertible notes in a voluntary reorganization under chapter 11 of the U.S. Bankruptcy Code.
About Apex Silver
Apex Silver is a mining, exploration and development company. Its 65%-owned San Cristóbal mine is the world's largest development in silver and zinc. The ordinary shares of Apex Silver trade on the American Stock Exchange under the symbol "SIL."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the intention of Apex Silver to enter into a definitive agreement relating to the sale of Apex Silver's interest in the San Cristóbal mine and the restructuring of Apex Silver's capital structure and the expected continuation of Apex Silver as a management services and exploration company. These statements are subject to risks and uncertainties, including those relating to the ability of Apex Silver and Sumitomo to reach a definitive agreement on all terms of the sale, including terms relating to Apex Silver's management of the mine, and the risk that creditors of Apex Silver or the mine will not agree to a restructuring on terms satisfactory to Sumitomo. The ability of Apex Silver to achieve the contemplated sale could also be affected by other factors, including those relating to its operations such as further decreases in metals prices, whether and to what extent the financial markets continue to experience significant volatility; and political unrest and uncertainty in Bolivia. Apex Silver assumes any obligation to update this information.
CONTACT:
Apex Silver Mines Corporation
Jerry W. Danni
Sr. Vice President Corporate Affairs
(303) 839-5060
First Majestic Silver Corp.: Third Quarter Financial Results
VANCOUVER, BRITISH COLUMBIA, Nov 14, 2008 (MARKET WIRE via COMTEX) -- FIRST MAJESTIC SILVER CORP. (FR-T) (CA:FR) (PINK SHEETS: FRMSF)(FRANKFURT: FMV)(WKN: A0LHKJ) (the "Company") is pleased to announce the unaudited financial results for the Company's third quarter ending September 30, 2008. The full version of the financial statements can be viewed on the Company's web site at www.firstmajestic.com or on SEDAR at www.sedar.com.
------------------------------------------------------
3rd Quarter Highlights
------------------------------------------------------
Gross Revenue $13.9 million
------------------------------------------------------
Net Revenue $10.8 million
------------------------------------------------------
Mine Operating Earnings $1.7 million
------------------------------------------------------
Net Loss after taxes $0.4 million
------------------------------------------------------
Cash Cost per ounce US$7.65
------------------------------------------------------
Silver Equivalent Production 840,918 oz. Ag eq.
------------------------------------------------------
Silver Equivalent Oz. Sold 850,461 oz. Ag eq.
------------------------------------------------------
FINANCIAL HIGHLIGHTS
- Sales revenues for the quarter (after smelting charge deductions) were $10.8 million; an increase of 5% compared to $10.3 million for the quarter ended September 30, 2007. Gross revenues for the quarter, prior to smelting charges were $13.9 million.
- Mine operating earnings for the quarter amounted to $1.7 million, compared to $1.5 million for the quarter ended September 30, 2007. Mine operating earnings for the nine months ended September 30, 2008, amounted to $8.6 million, compared to $3.8 million for the nine months ended September 30, 2007.
- The Company generated an operating loss of $0.8 million for the quarter, compared to an operating loss of $1 million for the quarter ended September 30, 2007. Mine operating earnings for the nine months ended September 30, 2008, amounted to a gain of $59,861, compared to a loss of $4.0 million for the nine months ended September 30, 2007.
- The Company generated a net loss after taxes of $0.4 million for the quarter ended September 30, 2008, compared to a net loss after taxes of $2.1 million for the quarter ended September 30, 2007.
- The Company generated a net income after taxes of $0.4 million for the nine months ended September 30, 2008, compared to a net loss after taxes of $5.9 million for the nine months ended September 30, 2007.
- The net loss after taxes of $0.4 million for this quarter ended September 30, 2008, was after deducting non-cash stock based compensation expense of $1 million (2007 - $0.7 million). The net income after taxes of $0.4 million for the nine months ended September 30, 2008, was after deducting non-cash stock-based compensation expense of $2.8 million (2007 - $2.4 million).
- Direct cash costs per ounce of silver were negatively impacted in the current quarter by an extremely wet and stormy rainy season in Mexico, with a cost per ounce of US$7.65 overall compared to US$4.84 in Q2 of 2008, and US$6.73 for the quarter ended September 30, 2007.
- Total quarterly production consisted of 840,918 ounces of silver equivalents, including 719,399 ounces of silver, 536 ounces of gold, and 1,518,271 pounds of lead. The Company sold 850,461 ounces of silver equivalent in the quarter, and 2,574,637 ounces of silver equivalent for the nine months ended September 30, 2008, resulting in a decrease of 7% and an increase of 6% respectively over the 911,916 ounces of silver equivalent sold in the quarter ended September 30, 2007, and 2,427,935 ounces of silver equivalent sold for the nine months ended September 30, 2007.
- In the quarter, the Company invested $10.2 million in capital expenditures on its mineral properties, and a further $7.5 million on additions to plant and equipment. For the nine months ended September 30, 2008, the Company invested $25.4 million in capital expenditures on its mineral properties, and $16 million on additions to plant and equipment.
OPERATIONAL HIGHLIGHTS
The Company continues to focus its efforts on production growth, Reserve and Resource growth and reducing costs in order to improve profitability. Mill expansions at the La Parrilla Silver Mine and San Martin Silver Mine which commenced earlier in the year are close to completion. The Company's largest expansion program which is taking place at the La Encantada Silver Mine is continuing and is expected to be completed by April 2009. Over the past three years, management remained focused on continuing to increase NI 43-101 compliant silver Resources. As at the latest NI 43-101 Reports, the Company has defined a global Resource of 241 million ounces of Silver equivalents. Twenty two drill rigs were active on the Company's four core projects during the third quarter. Due to market conditions, this program has now been reduced to four drill rigs. The Company anticipates that newly updated Resource estimates, with a cut off date of September 30th, will be published prior to year end on each of the Company's three operating silver mines.
La Parrilla Silver Mine
As part of the ongoing improvements at the La Parrilla during the quarter the two new leaching tanks and one additional thickener tank continued to be constructed. Recoveries and capacity are expected to improve once these new tanks come online in the fourth quarter of 2008. At the mine, preparation of the lower levels of the Rosarios area and the addition of a long hole drilling machine is now enabling an increase in production and improved grades from the sulphides areas.
San Martin Silver Mine
At San Martin, the primary focus during the quarter was to continue the expansion of the mill by adding additional leaching tanks and thickeners as well as reinforcing older tanks and completing a new overflow spill containment system. A rock slide that occurred during the quarter resulting from extremely heavy rains that blocked three of the four entrances to the mine was cleared successfully and the operation is now back to full production. The new portable screen which was installed in the second quarter is operating full time to take advantage of some of the oxide ore backfill and dumps left behind from previous years of operation. This is allowing the Company to produce primarily DorA-A?1/2 bars rather than concentrates which are presently more economic in the present environment of low lead and zinc prices.
La Encantada Silver Mine
Construction of the new 3500 tpd cyanidation mill is the primary focus at the La Encantada and is proceeding well. In addition, management decided to construct a temporary cyanidation circuit at the main flotation mill in order to treat the lead concentrates which have historically been produced at this operation. The completion of this circuit will allow the Company to treat the concentrates and avoid the addition costs associated with shipping concentrates to Penoles. Once this new circuit is completed, the silver precipitates produced from the concentrates will be shipped to the La Parrilla mill for the production of DorA-A?1/2 bars. Tests have proven that the lead concentrates treated with cyanide have a 95% recovery of contained silver and will substantially reduce the smelting costs associated with selling concentrates.
In Summary
Equally important to increasing silver production is further reducing costs and expenses where possible. The 2008 operating year thus far represents a year of high costs as a result of the Company's pursuit of aggressive growth based on the expansion of its operations and Resources. In addition, the Company has been negatively impacted this year by higher PeA-A?1/2oles smelter charges, especially on its lead and zinc concentrates. Management is pleased by the many cost cutting measures underway, and it is believed that further improvements in profitability can be achieved and additional improvements are expected going forward as the Company takes additional measures to reduce costs.
Finally, in this turbulent financial and commodity environment, First Majestic has been reacting by cutting costs where ever possible. Due to the mill improvements ongoing this year, mill throughput at each operation has now reached full capacity which is resulting in a more efficient use of equipment and machinery. The Company is continuing to analyze various options to reduce its operating costs and to squeeze out the most optimum margins possible. One example which is proving to add substantial value is management decided to mint 99.9% pure silver into coins, ingots and bars which are actively marketed on the Company's web site. Interest levels for these products are extremely high and are beginning to represent substantial revenues for the Company. These products tend to sell at substantial premiums to COMEX spot prices. It is anticipated that these sales of refined silver products will represent approximately 10% of the Company's silver production by February 2009. The Company is also exploring other ways of selling its silver outside of the normal avenues of commercial sales.
Management is confident that these steps that have been taken and others under examination will ultimately generating more income and greater value for shareholders.
First Majestic is a producing silver company focused in MA-A?1/2xico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Contacts:
First Majestic Silver Corp.
Keith Neumeyer
President & CEO
(604) 688-3033 or Toll Free: 1-866-529-2807
(604) 639-8873 (FAX)
Email: info@firstmajestic.com
Website: www.firstmajestic.com
SOURCE: First Majestic Silver Corp.
mailto:info@firstmajestic.com
http://www.firstmajestic.com
Copyright 2008 Market Wire, All rights reserved
------------------------------------------------------
3rd Quarter Highlights
------------------------------------------------------
Gross Revenue $13.9 million
------------------------------------------------------
Net Revenue $10.8 million
------------------------------------------------------
Mine Operating Earnings $1.7 million
------------------------------------------------------
Net Loss after taxes $0.4 million
------------------------------------------------------
Cash Cost per ounce US$7.65
------------------------------------------------------
Silver Equivalent Production 840,918 oz. Ag eq.
------------------------------------------------------
Silver Equivalent Oz. Sold 850,461 oz. Ag eq.
------------------------------------------------------
FINANCIAL HIGHLIGHTS
- Sales revenues for the quarter (after smelting charge deductions) were $10.8 million; an increase of 5% compared to $10.3 million for the quarter ended September 30, 2007. Gross revenues for the quarter, prior to smelting charges were $13.9 million.
- Mine operating earnings for the quarter amounted to $1.7 million, compared to $1.5 million for the quarter ended September 30, 2007. Mine operating earnings for the nine months ended September 30, 2008, amounted to $8.6 million, compared to $3.8 million for the nine months ended September 30, 2007.
- The Company generated an operating loss of $0.8 million for the quarter, compared to an operating loss of $1 million for the quarter ended September 30, 2007. Mine operating earnings for the nine months ended September 30, 2008, amounted to a gain of $59,861, compared to a loss of $4.0 million for the nine months ended September 30, 2007.
- The Company generated a net loss after taxes of $0.4 million for the quarter ended September 30, 2008, compared to a net loss after taxes of $2.1 million for the quarter ended September 30, 2007.
- The Company generated a net income after taxes of $0.4 million for the nine months ended September 30, 2008, compared to a net loss after taxes of $5.9 million for the nine months ended September 30, 2007.
- The net loss after taxes of $0.4 million for this quarter ended September 30, 2008, was after deducting non-cash stock based compensation expense of $1 million (2007 - $0.7 million). The net income after taxes of $0.4 million for the nine months ended September 30, 2008, was after deducting non-cash stock-based compensation expense of $2.8 million (2007 - $2.4 million).
- Direct cash costs per ounce of silver were negatively impacted in the current quarter by an extremely wet and stormy rainy season in Mexico, with a cost per ounce of US$7.65 overall compared to US$4.84 in Q2 of 2008, and US$6.73 for the quarter ended September 30, 2007.
- Total quarterly production consisted of 840,918 ounces of silver equivalents, including 719,399 ounces of silver, 536 ounces of gold, and 1,518,271 pounds of lead. The Company sold 850,461 ounces of silver equivalent in the quarter, and 2,574,637 ounces of silver equivalent for the nine months ended September 30, 2008, resulting in a decrease of 7% and an increase of 6% respectively over the 911,916 ounces of silver equivalent sold in the quarter ended September 30, 2007, and 2,427,935 ounces of silver equivalent sold for the nine months ended September 30, 2007.
- In the quarter, the Company invested $10.2 million in capital expenditures on its mineral properties, and a further $7.5 million on additions to plant and equipment. For the nine months ended September 30, 2008, the Company invested $25.4 million in capital expenditures on its mineral properties, and $16 million on additions to plant and equipment.
OPERATIONAL HIGHLIGHTS
The Company continues to focus its efforts on production growth, Reserve and Resource growth and reducing costs in order to improve profitability. Mill expansions at the La Parrilla Silver Mine and San Martin Silver Mine which commenced earlier in the year are close to completion. The Company's largest expansion program which is taking place at the La Encantada Silver Mine is continuing and is expected to be completed by April 2009. Over the past three years, management remained focused on continuing to increase NI 43-101 compliant silver Resources. As at the latest NI 43-101 Reports, the Company has defined a global Resource of 241 million ounces of Silver equivalents. Twenty two drill rigs were active on the Company's four core projects during the third quarter. Due to market conditions, this program has now been reduced to four drill rigs. The Company anticipates that newly updated Resource estimates, with a cut off date of September 30th, will be published prior to year end on each of the Company's three operating silver mines.
La Parrilla Silver Mine
As part of the ongoing improvements at the La Parrilla during the quarter the two new leaching tanks and one additional thickener tank continued to be constructed. Recoveries and capacity are expected to improve once these new tanks come online in the fourth quarter of 2008. At the mine, preparation of the lower levels of the Rosarios area and the addition of a long hole drilling machine is now enabling an increase in production and improved grades from the sulphides areas.
San Martin Silver Mine
At San Martin, the primary focus during the quarter was to continue the expansion of the mill by adding additional leaching tanks and thickeners as well as reinforcing older tanks and completing a new overflow spill containment system. A rock slide that occurred during the quarter resulting from extremely heavy rains that blocked three of the four entrances to the mine was cleared successfully and the operation is now back to full production. The new portable screen which was installed in the second quarter is operating full time to take advantage of some of the oxide ore backfill and dumps left behind from previous years of operation. This is allowing the Company to produce primarily DorA-A?1/2 bars rather than concentrates which are presently more economic in the present environment of low lead and zinc prices.
La Encantada Silver Mine
Construction of the new 3500 tpd cyanidation mill is the primary focus at the La Encantada and is proceeding well. In addition, management decided to construct a temporary cyanidation circuit at the main flotation mill in order to treat the lead concentrates which have historically been produced at this operation. The completion of this circuit will allow the Company to treat the concentrates and avoid the addition costs associated with shipping concentrates to Penoles. Once this new circuit is completed, the silver precipitates produced from the concentrates will be shipped to the La Parrilla mill for the production of DorA-A?1/2 bars. Tests have proven that the lead concentrates treated with cyanide have a 95% recovery of contained silver and will substantially reduce the smelting costs associated with selling concentrates.
In Summary
Equally important to increasing silver production is further reducing costs and expenses where possible. The 2008 operating year thus far represents a year of high costs as a result of the Company's pursuit of aggressive growth based on the expansion of its operations and Resources. In addition, the Company has been negatively impacted this year by higher PeA-A?1/2oles smelter charges, especially on its lead and zinc concentrates. Management is pleased by the many cost cutting measures underway, and it is believed that further improvements in profitability can be achieved and additional improvements are expected going forward as the Company takes additional measures to reduce costs.
Finally, in this turbulent financial and commodity environment, First Majestic has been reacting by cutting costs where ever possible. Due to the mill improvements ongoing this year, mill throughput at each operation has now reached full capacity which is resulting in a more efficient use of equipment and machinery. The Company is continuing to analyze various options to reduce its operating costs and to squeeze out the most optimum margins possible. One example which is proving to add substantial value is management decided to mint 99.9% pure silver into coins, ingots and bars which are actively marketed on the Company's web site. Interest levels for these products are extremely high and are beginning to represent substantial revenues for the Company. These products tend to sell at substantial premiums to COMEX spot prices. It is anticipated that these sales of refined silver products will represent approximately 10% of the Company's silver production by February 2009. The Company is also exploring other ways of selling its silver outside of the normal avenues of commercial sales.
Management is confident that these steps that have been taken and others under examination will ultimately generating more income and greater value for shareholders.
First Majestic is a producing silver company focused in MA-A?1/2xico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Contacts:
First Majestic Silver Corp.
Keith Neumeyer
President & CEO
(604) 688-3033 or Toll Free: 1-866-529-2807
(604) 639-8873 (FAX)
Email: info@firstmajestic.com
Website: www.firstmajestic.com
SOURCE: First Majestic Silver Corp.
mailto:info@firstmajestic.com
http://www.firstmajestic.com
Copyright 2008 Market Wire, All rights reserved
Pan American Silver Announces Third Quarter Results
Silver Production Increases, Manantial Espejo Commissioning Underway
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 13, 2008) -
(All amounts in US dollars unless otherwise stated and all production figures are approximate)
Pan American Silver Corp. (TSX:PAA)(NASDAQ:PAAS) today reported unaudited financial and operating results for the quarter ended September 30, 2008. The Company also provided an update on its mining operations as well as its project development activities, which includes the startup of its new Manantial Espejo mine in Argentina and the expansion of its San Vicente mine in Bolivia.
This earnings release should be read in conjunction with the Company's MD&A, Financial Statements and Notes to Financial Statements for the corresponding period, which are available on the Company's website at www.panamericansilver.com, and have been posted on SEDAR at www.sedar.com.
Third Quarter 2008 Highlights(1)
- Quarterly silver production of 4.9 million ounces, up 9% from Q3 2007
- Cash costs(2) increased to $6.61 per payable ounce of silver
- Sales of $79.5 million
- Cash flow from operations of $22.7 million.
- Mine operating earnings(2) of $15.5 million.
- Net income of $6.4 million or $0.08 per share
- Adjusted net income(3) of $11.3 million or $0.14 per share
- Commissioning of Manantial Espejo mine in Argentina is underway, with first silver and gold production expected approximately 5 weeks from today
- Discovery of a significant new high grade silver zone at the Morococha mine in Peru
- Production forecast for 2008 maintained at 18.8 million ounces of silver
(1) Financial information in this news release is based on Canadian GAAP
(2) Mine operating earnings and cash costs are non-GAAP measures. For a detailed description of these measures please refer to page 3 and page 8 of the MD&A.
(3) Adjusted net income is equal to net income, excluding an unrealized loss of $2.9 million on currencies held in denominations other than US dollars and a loss of $2.0 million on re-pricing of previously recognized concentrate sales.
"There is no question that our financial results were negatively impacted by the sharp decline in base metal and silver prices that started in the middle of the third quarter and gathered speed towards the end of September" said Geoff Burns, President and CEO. "However, we increased our silver production, still generated net earnings for a 10th consecutive quarter, delivered a respectable $22.7 million in operating cash flow, maintained a healthy working capital position with no debt and are now starting up our newest and lowest cost silver and gold mine. In short, we are well positioned to continue to deliver growth, weather the difficult price environment we have just entered and at the same time take advantage of the strategic opportunities that are becoming more prevalent."
Financial Results
Pan American posted sales of $79.5 million during the third quarter of 2008, a 10% decline year over year. Although the realized silver price increased 19% relative to the same period last year, this was offset by significantly lower realized base metal prices. Zinc prices were 45% lower than in the third quarter of last year while lead prices declined 39% over the same period.
Mine operating earnings for the quarter decreased to $15.5 million from $29.1 million in the comparable period in 2007, while consolidated net income decreased to $6.4 million or $0.08 per share. Included in net income for the quarter was an unrealized $2.9 million loss on currencies held in denominations other than US dollars and $2.0 million in negative pricing adjustments on concentrates previously included in sales. Excluding these two items, adjusted net income was $11.3 million or $0.11 per share. The lower net income and lower mine operating earnings during the current quarter were primarily caused by the decline in base metal prices, largely zinc and higher cash production costs and depreciation charges.
During the quarter the Company generated $22.7 million in cash flow from operating activities, while investing $33.6 million in construction of the new Manantial Espejo mine and $14.2 million in the expansion of the San Vicente mine. The Company also incurred capital expenditures of $11.8 million at its other operations.
At September 30, 2008 Pan American's cash and short term investments totalled $90.9 million and the Company had in excess of $167 million in working capital. The Company remains debt-free and fully funded to complete its short term growth projects. Additionally, in October the Company secured a $70 million revolving credit facility, which is intended to fund general corporate purposes and strategic business development activities. To date, the Company has not drawn from this facility.
Production And Operations
Pan American produced 4.9 million ounces of silver during the third quarter of 2008, which was 9% higher than in the third quarter of 2007 and 0.2 million ounces more than during the second quarter of this year. Alamo Dorado was the Company's best producing operation, contributing 1.7 million ounces of silver during the quarter. The La Colorada and Huaron operations also had good production quarters, contributing 1.0 and 0.9 million ounces of silver respectively.
Consolidated cash costs for the quarter rose to $6.61 per ounce of silver from $3.32 in the third quarter of 2007. The increase was a direct result of lower base metal by-product credits, and increased energy and labour costs, mainly at the Company's Peruvian operations.
Exploration
In October, Pan American announced the discovery of the high grade Morro Solar vein at its Morococha mine in Peru. The Morro Solar vein was identified during surface exploration and has been mapped over a continuous distance of more than 2.5 km along strike.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 13, 2008) -
(All amounts in US dollars unless otherwise stated and all production figures are approximate)
Pan American Silver Corp. (TSX:PAA)(NASDAQ:PAAS) today reported unaudited financial and operating results for the quarter ended September 30, 2008. The Company also provided an update on its mining operations as well as its project development activities, which includes the startup of its new Manantial Espejo mine in Argentina and the expansion of its San Vicente mine in Bolivia.
This earnings release should be read in conjunction with the Company's MD&A, Financial Statements and Notes to Financial Statements for the corresponding period, which are available on the Company's website at www.panamericansilver.com, and have been posted on SEDAR at www.sedar.com.
Third Quarter 2008 Highlights(1)
- Quarterly silver production of 4.9 million ounces, up 9% from Q3 2007
- Cash costs(2) increased to $6.61 per payable ounce of silver
- Sales of $79.5 million
- Cash flow from operations of $22.7 million.
- Mine operating earnings(2) of $15.5 million.
- Net income of $6.4 million or $0.08 per share
- Adjusted net income(3) of $11.3 million or $0.14 per share
- Commissioning of Manantial Espejo mine in Argentina is underway, with first silver and gold production expected approximately 5 weeks from today
- Discovery of a significant new high grade silver zone at the Morococha mine in Peru
- Production forecast for 2008 maintained at 18.8 million ounces of silver
(1) Financial information in this news release is based on Canadian GAAP
(2) Mine operating earnings and cash costs are non-GAAP measures. For a detailed description of these measures please refer to page 3 and page 8 of the MD&A.
(3) Adjusted net income is equal to net income, excluding an unrealized loss of $2.9 million on currencies held in denominations other than US dollars and a loss of $2.0 million on re-pricing of previously recognized concentrate sales.
"There is no question that our financial results were negatively impacted by the sharp decline in base metal and silver prices that started in the middle of the third quarter and gathered speed towards the end of September" said Geoff Burns, President and CEO. "However, we increased our silver production, still generated net earnings for a 10th consecutive quarter, delivered a respectable $22.7 million in operating cash flow, maintained a healthy working capital position with no debt and are now starting up our newest and lowest cost silver and gold mine. In short, we are well positioned to continue to deliver growth, weather the difficult price environment we have just entered and at the same time take advantage of the strategic opportunities that are becoming more prevalent."
Financial Results
Pan American posted sales of $79.5 million during the third quarter of 2008, a 10% decline year over year. Although the realized silver price increased 19% relative to the same period last year, this was offset by significantly lower realized base metal prices. Zinc prices were 45% lower than in the third quarter of last year while lead prices declined 39% over the same period.
Mine operating earnings for the quarter decreased to $15.5 million from $29.1 million in the comparable period in 2007, while consolidated net income decreased to $6.4 million or $0.08 per share. Included in net income for the quarter was an unrealized $2.9 million loss on currencies held in denominations other than US dollars and $2.0 million in negative pricing adjustments on concentrates previously included in sales. Excluding these two items, adjusted net income was $11.3 million or $0.11 per share. The lower net income and lower mine operating earnings during the current quarter were primarily caused by the decline in base metal prices, largely zinc and higher cash production costs and depreciation charges.
During the quarter the Company generated $22.7 million in cash flow from operating activities, while investing $33.6 million in construction of the new Manantial Espejo mine and $14.2 million in the expansion of the San Vicente mine. The Company also incurred capital expenditures of $11.8 million at its other operations.
At September 30, 2008 Pan American's cash and short term investments totalled $90.9 million and the Company had in excess of $167 million in working capital. The Company remains debt-free and fully funded to complete its short term growth projects. Additionally, in October the Company secured a $70 million revolving credit facility, which is intended to fund general corporate purposes and strategic business development activities. To date, the Company has not drawn from this facility.
Production And Operations
Pan American produced 4.9 million ounces of silver during the third quarter of 2008, which was 9% higher than in the third quarter of 2007 and 0.2 million ounces more than during the second quarter of this year. Alamo Dorado was the Company's best producing operation, contributing 1.7 million ounces of silver during the quarter. The La Colorada and Huaron operations also had good production quarters, contributing 1.0 and 0.9 million ounces of silver respectively.
Consolidated cash costs for the quarter rose to $6.61 per ounce of silver from $3.32 in the third quarter of 2007. The increase was a direct result of lower base metal by-product credits, and increased energy and labour costs, mainly at the Company's Peruvian operations.
Exploration
In October, Pan American announced the discovery of the high grade Morro Solar vein at its Morococha mine in Peru. The Morro Solar vein was identified during surface exploration and has been mapped over a continuous distance of more than 2.5 km along strike.
Silver Shield Reports on Exploration in Elk Lake, Ontario
BURLINGTON, ONTARIO, Nov 14, 2008 (MARKET WIRE via COMTEX) -- Silver Shield Resources Corp. (CA:SSR) ("Silver Shield" or "the Company") today reported on its exploration activities in Elk Lake, Ontario.
The Company is pleased to announce it has completed a stripping program at its 100% owned Welsh Silver Mine property in the area between holes WS-08-02 and WS-08-13, (190 metres apart) to trace the vein system identified in those holes, to the surface. This stripping program has uncovered an extensive area of intense mineralized vein swarms in the area of the prime targets for the Company's proposed winter 2008 drilling program. The company continues to be encouraged by results from the Welsh Mine Property.
As previously reported by Silver Shield in May of this year, hole WS-08-02 intersected 2,659.5 g/t silver over 0.15 metres, and 1,230 g/t silver over 0.15 metres was intersected in hole WS-08-13. (Check assaying of the former sample using pulp and metallic testing returned 2,104.68 g/t silver over 0.15 metres).
Additionally, hole WS-08-09 intersected 2,589 g/t silver at 111.3 metres to 111.5 metres, and 286 g/t silver at 82.15 metres to 82.35, located 100 metres to the immediate south of hole WS-08-02.
The Company also reported that phase one drilling of 1,500 metres in 13 holes on the Wilder Duggan property in Elk Lake returned low silver/cobalt values. The program successfully identified a network of quartz-carbonate veins averaging 5 to 20 centimetres in width over a span of 20 metres wide, over a length of roughly 300 metres. The data on the Wilder property will be reviewed by geological staff to determine a follow up Program for the spring of 2009.
About Silver Shield Resources Corp.
Silver Shield Resources Corp. is an exploration and development company of mineral resource properties focusing on advanced-stage silver properties in Northern Ontario and Mexico that the Company can take into production. Its portfolio holds varying option interests in five different properties, including the Welsh Mine Property in the historically-prolific silver producing Elk Lake-Gowganda area of Ontario and the La Cumbre Property in Guerrero, Mexico. Experienced Management have listed the Company on the TSX Venture Exchange upon executing its RTO Qualifying Transaction with Gemini Acquisitions Inc. on December 19th 2007 (CA:SSR: news, chart, profile) .
To receive Company press releases, please email lindsay@chfir.com and mention "Silver Shield" on the subject line.
Forward-Looking Statements
This press release contains certain "Forward-Looking Statements". All statements, other than statements of historical fact included herein, including without limitation, statements regarding exploration results, future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with The TSX Venture Exchange and the Canadian Securities Commissions. Not to be construed as an offer to buy or sell securities of this Company. Readers are advised to discuss all of their stock purchases with a registered securities broker or personal finance professional prior to investing.
Contacts:
Silver Shield Resources Corp.
Tim D. Towers
President and CEO
(905) 319-3033
Email: silvershield@cogeco.net
Website: www.silvershieldresources.com
CHF Investor Relations
Lindsay Carpenter
Account Manager
(416) 868-1079 ext. 239
Email: lindsay@chfir.com
SOURCE: Silver Shield Resources Corp.
mailto:silvershield@cogeco.net
http://www.silvershieldresources.com
mailto:lindsay@chfir.com
Copyright 2008 Market Wire, All rights reserved.
The Company is pleased to announce it has completed a stripping program at its 100% owned Welsh Silver Mine property in the area between holes WS-08-02 and WS-08-13, (190 metres apart) to trace the vein system identified in those holes, to the surface. This stripping program has uncovered an extensive area of intense mineralized vein swarms in the area of the prime targets for the Company's proposed winter 2008 drilling program. The company continues to be encouraged by results from the Welsh Mine Property.
As previously reported by Silver Shield in May of this year, hole WS-08-02 intersected 2,659.5 g/t silver over 0.15 metres, and 1,230 g/t silver over 0.15 metres was intersected in hole WS-08-13. (Check assaying of the former sample using pulp and metallic testing returned 2,104.68 g/t silver over 0.15 metres).
Additionally, hole WS-08-09 intersected 2,589 g/t silver at 111.3 metres to 111.5 metres, and 286 g/t silver at 82.15 metres to 82.35, located 100 metres to the immediate south of hole WS-08-02.
The Company also reported that phase one drilling of 1,500 metres in 13 holes on the Wilder Duggan property in Elk Lake returned low silver/cobalt values. The program successfully identified a network of quartz-carbonate veins averaging 5 to 20 centimetres in width over a span of 20 metres wide, over a length of roughly 300 metres. The data on the Wilder property will be reviewed by geological staff to determine a follow up Program for the spring of 2009.
About Silver Shield Resources Corp.
Silver Shield Resources Corp. is an exploration and development company of mineral resource properties focusing on advanced-stage silver properties in Northern Ontario and Mexico that the Company can take into production. Its portfolio holds varying option interests in five different properties, including the Welsh Mine Property in the historically-prolific silver producing Elk Lake-Gowganda area of Ontario and the La Cumbre Property in Guerrero, Mexico. Experienced Management have listed the Company on the TSX Venture Exchange upon executing its RTO Qualifying Transaction with Gemini Acquisitions Inc. on December 19th 2007 (CA:SSR: news, chart, profile) .
To receive Company press releases, please email lindsay@chfir.com and mention "Silver Shield" on the subject line.
Forward-Looking Statements
This press release contains certain "Forward-Looking Statements". All statements, other than statements of historical fact included herein, including without limitation, statements regarding exploration results, future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with The TSX Venture Exchange and the Canadian Securities Commissions. Not to be construed as an offer to buy or sell securities of this Company. Readers are advised to discuss all of their stock purchases with a registered securities broker or personal finance professional prior to investing.
Contacts:
Silver Shield Resources Corp.
Tim D. Towers
President and CEO
(905) 319-3033
Email: silvershield@cogeco.net
Website: www.silvershieldresources.com
CHF Investor Relations
Lindsay Carpenter
Account Manager
(416) 868-1079 ext. 239
Email: lindsay@chfir.com
SOURCE: Silver Shield Resources Corp.
mailto:silvershield@cogeco.net
http://www.silvershieldresources.com
mailto:lindsay@chfir.com
Copyright 2008 Market Wire, All rights reserved.
Minera Andes Reports Third Quarter 2008 Results
Minera Andes Inc. (TSX-MAI and US OTC: MNEAF) today reported a net loss of $3.5 million or $0.02 per share in its third quarter of 2008 financial statements. For the nine months ended September 30, 2008, Minera Andes recorded a net profit of $3.6 million or $0.02 per share. Our financial statements are available at www.sedar.com.
Minera Andes' revenue is derived from Minera Santa Cruz S.A.("MSC"), which is owned 49% by Minera Andes and 51% by Hochschild Mining plc. ("Hochschild") (HOCM.L: Reuters and HOC LN: Bloomberg - London Stock Exchange). MSC operates the San Jose silver/gold mine in southern Argentina, which had its first quarter of positive earning from silver and gold sales in Q2 2008 following the commencement of production at San Jose last year. Hochschild is the operator of the San Jose mine.
As previously reported, silver and gold sales in the third quarter totaled $18.5 million versus $63.2 million for the second quarter. Third quarter 2008 sales of gold and silver are lower than Q2 because an inventory build of metal produced in 4Q 2007 and 1Q 2008 gave the second quarter higher than normal sales. In addition, another build up of metal inventory has occurred in Q3 due to a smelting furnace being temporarily down. The metal in inventory is planned to be sold in Q4 of 2008. The averaged weighted sales prices for Q3 were $861/ounce of gold and $12.37/ounce of silver. The average realized market prices in Q3 2008 were 4.5% lower for Au and 25% lower for Ag than in Q2 2008 (source: KITCO). Since mine start up 15 months ago, San Jose's total sales have been $92.9 million. San Jose's silver and gold sales are un-hedged.
Allen Ambrose, President of Minera Andes said, "Sales and net revenues for the third quarter were less than expected, primarily due to temporary mechanical problems with a smelting furnace causing an inventory buildup of precipitate at site. With the first phase of expansion completed to double the production rate, it is estimated that the San Jose mine will join the ranks of the top ten primary silver producing mines in the world next year when the mine and mill ramp up to the expanded capacity level."
Production
Mill throughput increased 11.5% compared to the previous quarter, but silver production was 9.4% lower and gold production was 0.6% lower than the previous quarter due to lower head grades. San Jose's silver production declined slightly in the third quarter compared to the second quarter. Silver production was 990,000 ounces in the third quarter, compared to 1,093,000 ounces in the second quarter. Annualized, third quarter silver production is running closer to the average grade of the reserves in the original mine plan versus last quarter that was running 33% above the average grade of the reserves. During the life of the mine it is anticipated the gold and silver production will be in line with the mine plan and the reserve grades. Gold production in the third quarter was 12,340 ounces, compared to 12,410 ounces in the second quarter.
For the third quarter, production cash costs on a co-product basis averaged $7.43 per ounce of silver and $431 per ounce of gold. The production cash costs are shown on a co-product basis and are calculated by multiplying the total cash costs by the percentage the calculated value of the silver produced, divided by the number of silver ounces produced in the case of silver, and in the case of gold by multiplying the total cash costs by the percentage of value of gold produced, divided by the number of gold ounces produced. Cash costs include cost of sales, commercial deductions and selling expenses, less depreciation. The production cash costs were calculated using the value of the 12,340 ounces of gold and 990,000 ounces of silver produced in the form of dore, precipitates, and concentrates and the cost to produce those ounces as defined above was $12.7 million. The percentage of the values for the gold and silver production is based on the Q3 2008 average London PM fix for gold and the London fix for silver.
Phase I of the Mine Expansion
Phase I of the expansion has been completed, consisting of an increase in the mining and processing capacity from 750 metric ton per day to 1,500 metric ton per day. Mine production will ramp up to full capacity over the next few months. Currently, approximately 40% of the ore fed to the expanded plant is being processed to produce dore bars and approximately 60% is being processed to produce concentrates. Phase II of the expansion involves connecting to the regional electrical grid which is estimated to be completed in Q1 2009. Meanwhile, there is sufficient diesel generating capacity at the mine to run the mill at its full capacity. Phase III of the mine expansion, which is expected to be completed by mid-2009, involves further expansion of the refining circuit at the processing facility to convert all the concentrate to dore, which will reduce working capital requirements, selling discounts and result in lower production taxes.
Allen V. Ambrose, Minera Andes' President, who is a "qualified person" as defined by National Instrument 43-101, is responsible for the information used in this news release and has supervised the preparation of the information and reviewed all information used in this news release.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The Company holds about 304,000 acres of mineral exploration land in Argentina including the 49% owned San Jose silver/gold mine that commenced production last year. Minera Andes is also exploring the Los Azules copper project in San Juan province, where an exploration program is underway to complete a scoping study by yearend. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 190,158,851 shares issued and outstanding.
This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.
Caution Concerning Forward-Looking Statements:
This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, evolution of mineral resources and reserves, work programs, development plans and exploration budgets at the Company's San Jose Project. The forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. In particular, there can be no assurance that production capacity at the San Jose mine will be successfully increased, that resources and reserves at the San Jose mine will be increased. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral reserves and other risks. We refer readers to the risk factors and uncertainties described in the Company's continuous disclosure record, a copy of which is available under the Company's profile at www.sedar.com. Minera Andes' joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits with "mineral reserves" that a company can economically and legally extract or produce. We use certain terms in this press release, such as "mineral resources", that the SEC guidelines strictly prohibit us from including in our filings with the SEC, because these terms are common usage in Canada and form part of our Canadian filing requirements.
SOURCE Minera Andes Inc.
Copyright
(C) 2008 PR Newswire. All rights reserved
Minera Andes' revenue is derived from Minera Santa Cruz S.A.("MSC"), which is owned 49% by Minera Andes and 51% by Hochschild Mining plc. ("Hochschild") (HOCM.L: Reuters and HOC LN: Bloomberg - London Stock Exchange). MSC operates the San Jose silver/gold mine in southern Argentina, which had its first quarter of positive earning from silver and gold sales in Q2 2008 following the commencement of production at San Jose last year. Hochschild is the operator of the San Jose mine.
As previously reported, silver and gold sales in the third quarter totaled $18.5 million versus $63.2 million for the second quarter. Third quarter 2008 sales of gold and silver are lower than Q2 because an inventory build of metal produced in 4Q 2007 and 1Q 2008 gave the second quarter higher than normal sales. In addition, another build up of metal inventory has occurred in Q3 due to a smelting furnace being temporarily down. The metal in inventory is planned to be sold in Q4 of 2008. The averaged weighted sales prices for Q3 were $861/ounce of gold and $12.37/ounce of silver. The average realized market prices in Q3 2008 were 4.5% lower for Au and 25% lower for Ag than in Q2 2008 (source: KITCO). Since mine start up 15 months ago, San Jose's total sales have been $92.9 million. San Jose's silver and gold sales are un-hedged.
Allen Ambrose, President of Minera Andes said, "Sales and net revenues for the third quarter were less than expected, primarily due to temporary mechanical problems with a smelting furnace causing an inventory buildup of precipitate at site. With the first phase of expansion completed to double the production rate, it is estimated that the San Jose mine will join the ranks of the top ten primary silver producing mines in the world next year when the mine and mill ramp up to the expanded capacity level."
Production
Mill throughput increased 11.5% compared to the previous quarter, but silver production was 9.4% lower and gold production was 0.6% lower than the previous quarter due to lower head grades. San Jose's silver production declined slightly in the third quarter compared to the second quarter. Silver production was 990,000 ounces in the third quarter, compared to 1,093,000 ounces in the second quarter. Annualized, third quarter silver production is running closer to the average grade of the reserves in the original mine plan versus last quarter that was running 33% above the average grade of the reserves. During the life of the mine it is anticipated the gold and silver production will be in line with the mine plan and the reserve grades. Gold production in the third quarter was 12,340 ounces, compared to 12,410 ounces in the second quarter.
For the third quarter, production cash costs on a co-product basis averaged $7.43 per ounce of silver and $431 per ounce of gold. The production cash costs are shown on a co-product basis and are calculated by multiplying the total cash costs by the percentage the calculated value of the silver produced, divided by the number of silver ounces produced in the case of silver, and in the case of gold by multiplying the total cash costs by the percentage of value of gold produced, divided by the number of gold ounces produced. Cash costs include cost of sales, commercial deductions and selling expenses, less depreciation. The production cash costs were calculated using the value of the 12,340 ounces of gold and 990,000 ounces of silver produced in the form of dore, precipitates, and concentrates and the cost to produce those ounces as defined above was $12.7 million. The percentage of the values for the gold and silver production is based on the Q3 2008 average London PM fix for gold and the London fix for silver.
Phase I of the Mine Expansion
Phase I of the expansion has been completed, consisting of an increase in the mining and processing capacity from 750 metric ton per day to 1,500 metric ton per day. Mine production will ramp up to full capacity over the next few months. Currently, approximately 40% of the ore fed to the expanded plant is being processed to produce dore bars and approximately 60% is being processed to produce concentrates. Phase II of the expansion involves connecting to the regional electrical grid which is estimated to be completed in Q1 2009. Meanwhile, there is sufficient diesel generating capacity at the mine to run the mill at its full capacity. Phase III of the mine expansion, which is expected to be completed by mid-2009, involves further expansion of the refining circuit at the processing facility to convert all the concentrate to dore, which will reduce working capital requirements, selling discounts and result in lower production taxes.
Allen V. Ambrose, Minera Andes' President, who is a "qualified person" as defined by National Instrument 43-101, is responsible for the information used in this news release and has supervised the preparation of the information and reviewed all information used in this news release.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The Company holds about 304,000 acres of mineral exploration land in Argentina including the 49% owned San Jose silver/gold mine that commenced production last year. Minera Andes is also exploring the Los Azules copper project in San Juan province, where an exploration program is underway to complete a scoping study by yearend. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 190,158,851 shares issued and outstanding.
This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.
Caution Concerning Forward-Looking Statements:
This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, evolution of mineral resources and reserves, work programs, development plans and exploration budgets at the Company's San Jose Project. The forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. In particular, there can be no assurance that production capacity at the San Jose mine will be successfully increased, that resources and reserves at the San Jose mine will be increased. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral reserves and other risks. We refer readers to the risk factors and uncertainties described in the Company's continuous disclosure record, a copy of which is available under the Company's profile at www.sedar.com. Minera Andes' joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits with "mineral reserves" that a company can economically and legally extract or produce. We use certain terms in this press release, such as "mineral resources", that the SEC guidelines strictly prohibit us from including in our filings with the SEC, because these terms are common usage in Canada and form part of our Canadian filing requirements.
SOURCE Minera Andes Inc.
Copyright
(C) 2008 PR Newswire. All rights reserved
Thursday, November 13, 2008
South American Silver Corp. Files Third Quarter 2008 Financial Statements
VANCOUVER, BRITISH COLUMBIA, Nov 13, 2008 (MARKET WIRE via COMTEX) -- South American Silver Corp. ("SASC" or the "Company")(TSX: SAC) reports that it has released its unaudited consolidated financial statements for the nine months ended September 30, 2008 and the related management's discussion and analysis of financial position and results of operations ("MD&A").
As at September 30, 2008, the Company had cash and cash equivalents of US$8.7 million and working capital of US$8.3 million. With this funding in place, the Company is in a strong financial position to pursue its current exploration and property acquisition strategy.
An updated NI 43-101 compliant resource report in respect of the Malku Khota project will be filed on SEDAR shortly, using results from 75 drill holes. The Company intends to follow this with a preliminary economic assessment in the fourth quarter. The Company will also continue a low level exploration program at Laurani and reconnaissance to develop new targets and acquire new properties. At Escalones, the Company has presently put exploration on hold and may look for a partner.
At Malku Khota, the Company's exploration plan involves completion of an additional 1,000 metres of drilling for a total of approximately 31,000 metres of diamond drilling. In addition to the ongoing drill program at Malku Khota, an aggressive program of metallurgical work to examine metallurgical recoveries of silver, indium, gold and associated metals is underway. The metallurgical testing is being carried out at the SGS Mineral Services, Canada, Lakefield Metallurgical Laboratory. The latest metallurgical results have been reported in the press release dated October 16, 2008. These results indicate that the indium can be precipitated to form potentially saleable products from the acid chloride leach solutions as well as the silver. 99.2% of the indium was extracted from the leach solution. The Company also reported that acid chloride leach test work on 10 mesh material achieved recoveries of 62%-97% for silver and 61%-77% for indium. A flotation test on a lead-silver rich sample achieved a 97.5% silver and 97.3% lead recovery into a low-grade bulk concentrate.
Community relations are an important part of doing business in Bolivia and the Company has a Community Relations Manager who speaks both Aymara and Quechua to maintain good relations with the communities in which the Company operates. The Company has signed agreements of cooperation with each of the eleven communities in the area and has an excellent working relationship with each of these groups. The Company, through a consulting group, has completed a series of lectures to each community to make them better informed about mining development.
Copies of the unaudited consolidated financial statements and related MD&A can be found on SEDAR at www.SEDAR.com.
Certain statements contained herein constitute "forward-looking statements". These forward-looking statements are based on current expectations. The nature, timing and extent of the exploration programs may materially change from current intentions for a number of reasons. Additionally, "forward looking statements" look into the future and provide an opinion as to the effect of certain events and trends on the business. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
SASC is a mineral exploration company that acquires, explores and develops mineral properties, primarily silver, gold and copper in South America. The Company presently holds interests in three properties: the flagship Malku Khota silver-gold and the Laurani gold-silver properties in Bolivia and the Escalones copper-gold-molybdenum property in Chile.
Contacts:
South American Silver Corp.
William Filtness
Chief Financial Officer
(604) 684-0693
(604) 684-0642 (FAX)
SOURCE: South American Silver Corp.
Copyright 2008 Market Wire, All rights reserved
As at September 30, 2008, the Company had cash and cash equivalents of US$8.7 million and working capital of US$8.3 million. With this funding in place, the Company is in a strong financial position to pursue its current exploration and property acquisition strategy.
An updated NI 43-101 compliant resource report in respect of the Malku Khota project will be filed on SEDAR shortly, using results from 75 drill holes. The Company intends to follow this with a preliminary economic assessment in the fourth quarter. The Company will also continue a low level exploration program at Laurani and reconnaissance to develop new targets and acquire new properties. At Escalones, the Company has presently put exploration on hold and may look for a partner.
At Malku Khota, the Company's exploration plan involves completion of an additional 1,000 metres of drilling for a total of approximately 31,000 metres of diamond drilling. In addition to the ongoing drill program at Malku Khota, an aggressive program of metallurgical work to examine metallurgical recoveries of silver, indium, gold and associated metals is underway. The metallurgical testing is being carried out at the SGS Mineral Services, Canada, Lakefield Metallurgical Laboratory. The latest metallurgical results have been reported in the press release dated October 16, 2008. These results indicate that the indium can be precipitated to form potentially saleable products from the acid chloride leach solutions as well as the silver. 99.2% of the indium was extracted from the leach solution. The Company also reported that acid chloride leach test work on 10 mesh material achieved recoveries of 62%-97% for silver and 61%-77% for indium. A flotation test on a lead-silver rich sample achieved a 97.5% silver and 97.3% lead recovery into a low-grade bulk concentrate.
Community relations are an important part of doing business in Bolivia and the Company has a Community Relations Manager who speaks both Aymara and Quechua to maintain good relations with the communities in which the Company operates. The Company has signed agreements of cooperation with each of the eleven communities in the area and has an excellent working relationship with each of these groups. The Company, through a consulting group, has completed a series of lectures to each community to make them better informed about mining development.
Copies of the unaudited consolidated financial statements and related MD&A can be found on SEDAR at www.SEDAR.com.
Certain statements contained herein constitute "forward-looking statements". These forward-looking statements are based on current expectations. The nature, timing and extent of the exploration programs may materially change from current intentions for a number of reasons. Additionally, "forward looking statements" look into the future and provide an opinion as to the effect of certain events and trends on the business. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
SASC is a mineral exploration company that acquires, explores and develops mineral properties, primarily silver, gold and copper in South America. The Company presently holds interests in three properties: the flagship Malku Khota silver-gold and the Laurani gold-silver properties in Bolivia and the Escalones copper-gold-molybdenum property in Chile.
Contacts:
South American Silver Corp.
William Filtness
Chief Financial Officer
(604) 684-0693
(604) 684-0642 (FAX)
SOURCE: South American Silver Corp.
Copyright 2008 Market Wire, All rights reserved
Tuesday, November 11, 2008
Minera Andes announces third quarter gold/silver sales at the San Jose mine total $18.5 million - First phase of expansion completed
SPOKANE, WA, Nov 11, 2008 /PRNewswire-FirstCall via COMTEX/ --
Minera Andes Inc. (TSX: MAI and US OTC: MNEAF) is pleased to announce details of the San Jose mine performance to September 30, 2008. The San Jose project is operated by Minera Santa Cruz S.A. ("MSC") and is owned 49% by Minera Andes and 51% by Hochschild Mining plc ("Hochschild") (HOCM.L: Reuters and HOC LN: Bloomberg - London Stock Exchange). Hochschild is the operator of the project. Gross proceeds from metal sales during the third quarter of 2008 were $18.5 million.
Production at the San Jose mine in Q3 2008 totaled 990,000 ounces of silver and 12,340 ounces of gold, of which 49% is attributable to Minera Andes. Mill throughput increased 11.5% compared to the previous quarter, but silver production was 9.4% lower and gold production was 0.6% lower than the previous quarter due to lower head grades.
SAN JOSE MINE PRODUCTION
-------------------------------------------------------------------------
Production* Q3 Q2 Q1
2008 2008 2008
-------------------------------------------------------------------------
Ore production (metric tons) 67,589 60,603 59,897
-------------------------------------------------------------------------
Average head grade silver (g/t) 547 681 624
-------------------------------------------------------------------------
Average head grade gold (g/t) 6.78 7.56 7.10
-------------------------------------------------------------------------
Silver produced (ounces) 990,000 1,093,000 968,000
-------------------------------------------------------------------------
Gold produced (ounces) 12,340 12,410 12,140
-------------------------------------------------------------------------
Net silver sold (ounces)* 846,000 2,284,400 323,000
-------------------------------------------------------------------------
Net gold sold (ounces)* 9,760 28,980 5,050
-------------------------------------------------------------------------
* The company has a 49% interest in the San Jose production.
Third quarter 2008 sales of gold and silver are lower than Q2 because an inventory build of metal produced in 4Q 2007 and 1Q 2008 gave the second quarter higher than normal sales. In addition, another build up of metal inventory has occurred in Q3 due to a smelting furnace being temporarily down. The metal in inventory is forecast to be sold in Q4 of 2008. The average realized market prices in 3Q 2008 were 4.5% lower for Au and 25% lower for Ag than in 2Q 2008. Prices for sales of metal in Q3 2008 on an average weighted basis were $861 per ounce of gold and $12.37 per ounce of silver.
Phase I of the expansion has been completed, consisting of an increase in the mining and processing capacity from 750 metric ton per day to 1,500 metric ton per day. Mine production will ramp up to full capacity over the next few months. Currently, approximately 40% of the ore fed to the expanded plant is being processed to produce dore bars and approximately 60% is being processed to produce concentrates. Phase II of the expansion involves connecting to the regional electrical grid which is estimated to be completed in Q1 2009. Meanwhile, there is sufficient diesel generating capacity at the mine to run the mill at its full capacity. Phase III of the mine expansion involves further expansion of the refining circuit at the processing facility to convert all the concentrate produced at the mine to dore which is expected to be completed by mid 2009, which will reduce working capital requirements and selling discounts and receive a lower tax treatment.
Allen Ambrose, president of Minera Andes said, "The San Jose project now has cash flow that is being used to pay for the expansion of the mine, refining circuit, and for the connection to the regional power grid. Remaining funds will be used to begin repayment of the joint venture project debt."
The San Jose mine now comprises 18 km of underground workings accessed by ramps on the Huevos Verdes, Frea and Kospi veins. During 2008 to date, 4,095 meters of workings were completed on the Huevos Verdes, Frea, and Kospi veins. The mine is currently staffed with 724 employees and over 230 contractors.
Allen V. Ambrose, Minera Andes' President, who is a "qualified person" as defined by National Instrument 43-101, is responsible for the information used in this news release and has supervised the preparation of the information and reviewed all information used in this news release.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The Company holds about 304,000 acres of mineral exploration land in Argentina including the 49% owned San Jose silver/gold mine that commenced production last year. Minera Andes is also exploring the Los Azules copper project in San Juan province, where an exploration program is underway to define a resource and scoping study. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 189,706,935 shares issued and outstanding.
This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.
Caution Concerning Forward-Looking Statements:
This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, evolution of mineral resources and reserves, work programs, development plans and exploration budgets at the Company's San Jose Project. The forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. In particular, there can be no assurance that production capacity at the San Jose mine will be successfully increased, that resources and reserves at the San Jose mine will be increased. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral reserves and other risks. We refer readers to the risk factors and uncertainties described in the Company's continuous disclosure record, a copy of which is available under the Company's profile at www.sedar.com. Minera Andes' joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits with "mineral reserves" that a company can economically and legally extract or produce. We use certain terms in this press release, such as "mineral resources", that the SEC guidelines strictly prohibit us from including in our filings with the SEC, because these terms are common usage in Canada and form part of our Canadian filing requirements.
SOURCE Minera Andes Inc.
Copyright (C) 2008 PR Newswire. All rights reserved
Minera Andes Inc. (TSX: MAI and US OTC: MNEAF) is pleased to announce details of the San Jose mine performance to September 30, 2008. The San Jose project is operated by Minera Santa Cruz S.A. ("MSC") and is owned 49% by Minera Andes and 51% by Hochschild Mining plc ("Hochschild") (HOCM.L: Reuters and HOC LN: Bloomberg - London Stock Exchange). Hochschild is the operator of the project. Gross proceeds from metal sales during the third quarter of 2008 were $18.5 million.
Production at the San Jose mine in Q3 2008 totaled 990,000 ounces of silver and 12,340 ounces of gold, of which 49% is attributable to Minera Andes. Mill throughput increased 11.5% compared to the previous quarter, but silver production was 9.4% lower and gold production was 0.6% lower than the previous quarter due to lower head grades.
SAN JOSE MINE PRODUCTION
-------------------------------------------------------------------------
Production* Q3 Q2 Q1
2008 2008 2008
-------------------------------------------------------------------------
Ore production (metric tons) 67,589 60,603 59,897
-------------------------------------------------------------------------
Average head grade silver (g/t) 547 681 624
-------------------------------------------------------------------------
Average head grade gold (g/t) 6.78 7.56 7.10
-------------------------------------------------------------------------
Silver produced (ounces) 990,000 1,093,000 968,000
-------------------------------------------------------------------------
Gold produced (ounces) 12,340 12,410 12,140
-------------------------------------------------------------------------
Net silver sold (ounces)* 846,000 2,284,400 323,000
-------------------------------------------------------------------------
Net gold sold (ounces)* 9,760 28,980 5,050
-------------------------------------------------------------------------
* The company has a 49% interest in the San Jose production.
Third quarter 2008 sales of gold and silver are lower than Q2 because an inventory build of metal produced in 4Q 2007 and 1Q 2008 gave the second quarter higher than normal sales. In addition, another build up of metal inventory has occurred in Q3 due to a smelting furnace being temporarily down. The metal in inventory is forecast to be sold in Q4 of 2008. The average realized market prices in 3Q 2008 were 4.5% lower for Au and 25% lower for Ag than in 2Q 2008. Prices for sales of metal in Q3 2008 on an average weighted basis were $861 per ounce of gold and $12.37 per ounce of silver.
Phase I of the expansion has been completed, consisting of an increase in the mining and processing capacity from 750 metric ton per day to 1,500 metric ton per day. Mine production will ramp up to full capacity over the next few months. Currently, approximately 40% of the ore fed to the expanded plant is being processed to produce dore bars and approximately 60% is being processed to produce concentrates. Phase II of the expansion involves connecting to the regional electrical grid which is estimated to be completed in Q1 2009. Meanwhile, there is sufficient diesel generating capacity at the mine to run the mill at its full capacity. Phase III of the mine expansion involves further expansion of the refining circuit at the processing facility to convert all the concentrate produced at the mine to dore which is expected to be completed by mid 2009, which will reduce working capital requirements and selling discounts and receive a lower tax treatment.
Allen Ambrose, president of Minera Andes said, "The San Jose project now has cash flow that is being used to pay for the expansion of the mine, refining circuit, and for the connection to the regional power grid. Remaining funds will be used to begin repayment of the joint venture project debt."
The San Jose mine now comprises 18 km of underground workings accessed by ramps on the Huevos Verdes, Frea and Kospi veins. During 2008 to date, 4,095 meters of workings were completed on the Huevos Verdes, Frea, and Kospi veins. The mine is currently staffed with 724 employees and over 230 contractors.
Allen V. Ambrose, Minera Andes' President, who is a "qualified person" as defined by National Instrument 43-101, is responsible for the information used in this news release and has supervised the preparation of the information and reviewed all information used in this news release.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The Company holds about 304,000 acres of mineral exploration land in Argentina including the 49% owned San Jose silver/gold mine that commenced production last year. Minera Andes is also exploring the Los Azules copper project in San Juan province, where an exploration program is underway to define a resource and scoping study. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 189,706,935 shares issued and outstanding.
This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.
Caution Concerning Forward-Looking Statements:
This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, evolution of mineral resources and reserves, work programs, development plans and exploration budgets at the Company's San Jose Project. The forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. In particular, there can be no assurance that production capacity at the San Jose mine will be successfully increased, that resources and reserves at the San Jose mine will be increased. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral reserves and other risks. We refer readers to the risk factors and uncertainties described in the Company's continuous disclosure record, a copy of which is available under the Company's profile at www.sedar.com. Minera Andes' joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits with "mineral reserves" that a company can economically and legally extract or produce. We use certain terms in this press release, such as "mineral resources", that the SEC guidelines strictly prohibit us from including in our filings with the SEC, because these terms are common usage in Canada and form part of our Canadian filing requirements.
SOURCE Minera Andes Inc.
Copyright (C) 2008 PR Newswire. All rights reserved
Sunday, November 9, 2008
Silver Eagle Provides Financial and Operational Update
TORONTO, ONTARIO, Nov 07, 2008 (MARKET WIRE via COMTEX) -- Silver Eagle Mines Inc. (CA:SEG) ("Silver Eagle" or the "Company") announces that due to the steep decline in metal prices, it is reviewing and considering all options and strategic alternatives to enhance stakeholder value.
As a result of the significant downturn in silver, lead and zinc prices, the Company has experienced lower than planned cash flows from operations. These cash flows are insufficient to cover the operating and corporate costs of the Company and as a result, Silver Eagle has minimal available cash resources. Silver Eagle has taken and is continuing to take steps to reduce cash costs and expenses both at its operations and its corporate offices.
The Company had been engaged in extended negotiations in respect of an anticipated loan financing to stabilize the Company's cash position, which negotiations have now been terminated.
Silver Eagle has engaged Haywood Securities Inc. to act as its financial and strategic advisor, to perform a strategic review of the Company.
The Company is considering all potential alternatives, including potentially raising additional capital, completing a merger or acquisition transaction, selling assets, putting the mine on care and maintenance or ceasing operations at the mine.
There can be no assurance that the Company will complete any transaction that may arise in connection with any of the above.
Silver Eagle is a Canadian-based mining company, the primary asset of which is its wholly-owned Mexican subsidiary, San Pedro Resources, S.A. de C.V., which controls the fully-permitted Miguel Auza Mine and adjacent properties in Zacatecas, Mexico. Since the commissioning of the expanded mill in September, it has processed 18,613 tonnes of ore grading 1.82% Pb, 2.06% Zn and 205 gpt Ag, producing 467 tonnes of zinc concentrates, 460 tonnes of lead concentrates, with 89,302 ounces of Ag contained in the above mentioned concentrates. To date, November processing is averaging 513 tpd. Concentrates are being hauled to the Manzanillo port where they are being exported.
ON BEHALF OF THE BOARD OF DIRECTORS OF SILVER EAGLE MINES INC.
Terrence H. Byberg, President and CEO
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Silver Eagle Mines Inc.
Terrence H. Byberg
President and CEO
(416) 361-1101
(416) 361-9280 (FAX)
Email: info@silvereaglemines.com
Website: www.silvereaglemines.com
SOURCE: Silver Eagle Mines Inc.
mailto:info@silvereaglemines.com
http://www.silvereaglemines.com
Copyright 2008 Market Wire, All rights reserved.
As a result of the significant downturn in silver, lead and zinc prices, the Company has experienced lower than planned cash flows from operations. These cash flows are insufficient to cover the operating and corporate costs of the Company and as a result, Silver Eagle has minimal available cash resources. Silver Eagle has taken and is continuing to take steps to reduce cash costs and expenses both at its operations and its corporate offices.
The Company had been engaged in extended negotiations in respect of an anticipated loan financing to stabilize the Company's cash position, which negotiations have now been terminated.
Silver Eagle has engaged Haywood Securities Inc. to act as its financial and strategic advisor, to perform a strategic review of the Company.
The Company is considering all potential alternatives, including potentially raising additional capital, completing a merger or acquisition transaction, selling assets, putting the mine on care and maintenance or ceasing operations at the mine.
There can be no assurance that the Company will complete any transaction that may arise in connection with any of the above.
Silver Eagle is a Canadian-based mining company, the primary asset of which is its wholly-owned Mexican subsidiary, San Pedro Resources, S.A. de C.V., which controls the fully-permitted Miguel Auza Mine and adjacent properties in Zacatecas, Mexico. Since the commissioning of the expanded mill in September, it has processed 18,613 tonnes of ore grading 1.82% Pb, 2.06% Zn and 205 gpt Ag, producing 467 tonnes of zinc concentrates, 460 tonnes of lead concentrates, with 89,302 ounces of Ag contained in the above mentioned concentrates. To date, November processing is averaging 513 tpd. Concentrates are being hauled to the Manzanillo port where they are being exported.
ON BEHALF OF THE BOARD OF DIRECTORS OF SILVER EAGLE MINES INC.
Terrence H. Byberg, President and CEO
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Silver Eagle Mines Inc.
Terrence H. Byberg
President and CEO
(416) 361-1101
(416) 361-9280 (FAX)
Email: info@silvereaglemines.com
Website: www.silvereaglemines.com
SOURCE: Silver Eagle Mines Inc.
mailto:info@silvereaglemines.com
http://www.silvereaglemines.com
Copyright 2008 Market Wire, All rights reserved.
Friday, November 7, 2008
Silverstone Purchases Life of Mine Gold and Silver From Sherwood Copper Corporation's Minto Mine
Nov 07, 2008 (Hugin via COMTEX) ----VANCOUVER, BRITISH COLUMBIA--(Marketwire - November 07, 2008) - Silverstone Resources Corp. ("Silverstone") (TSX VENTURE: SST) is pleased to announce that it has agreed to acquire 100% of the life-of-mine payable gold and silver production from Sherwood Copper Corporation's ("Sherwood") Minto mine located in the Yukon, Canada effective December 1, 2008. With this acquisition, together with Silverstone's existing contributing silver contracts, Silverstone is expected to sell in excess of 4.5 million silver equivalent ounces(1) in 2009.
Sherwood's Minto mine is a base metal mine (copper-gold-silver) located in the Yukon, Canada. The Minto mine reached commercial production in October 2007, increased mill throughput 50% by mid-April, 2008 and plans to process higher grades and to further increase mill throughput by early 2009. The mill at Minto is forecast to produce more than 30,000 ounces of payable gold and more than 300,000 ounces of payable silver in 2009, or approximately 2.4 million silver equivalent ounces(1).
Silverstone will purchase all of the gold and silver production from the Minto mine and, in exchange, Sherwood will receive an up-front payment from Silverstone of US$37.5 million, plus a further payment of the lesser of (a) US$300 per ounce of gold and US$3.90 per ounce of silver (subject to a 1% inflationary adjustment after 3 years and each year thereafter) and (b) the prevailing market price on the London Metal Exchange for each ounce delivered. US$12.5 million of the up-front payment will be advanced immediately and the balance within 14 days of the date of the letter of intent, subject to certain conditions. If production from the Minto mine exceeds 50,000 ounces of gold per year in the first two years of the agreement, or 30,000 ounces of gold per year thereafter, Silverstone will be entitled to purchase only 50% of the amount in excess of those thresholds. Kutcho Copper, Sherwood's wholly owned subsidiary that owns the Kutcho copper-zinc-silver-gold project in British Columbia, has also granted Silverstone a right of first refusal to purchase any gold and/or silver streams from the Kutcho project, should Kutcho Copper elect to sell such, on terms and conditions to be agreed by mutual consent.
In order to fund the US$37.5 million cash payment, in addition to US$28 million in cash on hand, Silverstone will draw on its US$15 million revolving line of credit through Scotia Capital.
"This transaction with Sherwood will more than double Silverstone's silver equivalent ounces in 2009. We are very pleased to have acquired this gold and silver production from the high grade Minto copper mine, which has the ability to add additional gold and silver ounces through its significant exploration potential. With this acquisition, Silverstone is able to continue to increase its growth profile at terms consistent with its previous acquisitions. We are fortunate to be able to utilize our existing cash, minimal leverage and no dilution to our shareholders," said Darren Pylot Silverstone's President and Chief Executive Officer.
Closing of the transaction is subject to certain conditions to be met by both companies and receipt of all regulatory approvals including acceptance by the TSX Venture exchange.
An advisory fee of US$375,000 is payable upon completion of the transaction. This fee can be paid in cash or common shares or any portion thereof at Silverstone's election.
The following tables set forth the estimated Proven and Probable Mineral Reserves and the Mineral Resources for the Minto mine as of June 17, 2008 based on drilling to the end of 2007. All reports referenced are available on www.sedar.com.
Current Proven and Probable Mineral Reserves for the Minto mine are tabulated below:
Minto Mine Proven and Probable Mineral Reserves (see notes 1,2)
-------------------------------------------------------------------------- Contained Contained Silver Ounces Ounces Equivalent Reserves Tonnes Copper Gold Silver Gold Silver Ounces(1) Category (M: 10.80, +0.36, +3.44%) % g/t g/t (000's) (000's) (000's) -------------------------------------------------------------------------- Proven(2) 8.22 2.01 0.77 7.98 203.6 2,110 16,362 -------------------------------------------------------------------------- Probable(2) 0.91 1.24 0.46 5.40 13.3 159 1,090 -------------------------------------------------------------------------- Proven + Probable(2) 9.13 1.93 0.74 7.73 216.9 2,267 17,452 -------------------------------------------------------------------------- (1) Silver equivalent ounces are calculated by using a ratio of 1 ounce of gold is equivalent to 70 ounces of silver. (2) Reserves are calculated using a 0.62% Cu cutoff.
Mineral reserves were calculated by MintoEx geology and engineering staff under the supervision of Dan Russell, P. Eng., Manager of Mining at the Minto Mine, who is the Qualified Person under National Instrument 43-101 responsible for the mineral reserve estimate, as detailed in Sherwood Copper's June 17, 2008 news release.
The measured, indicated and inferred mineral resources are tabulated below, and are inclusive of the proven and probable reserves:
Minto Mine Mineral Resources (see notes 1,2)
-------------------------------------------------------------------------- Contained Contained Silver Ounces Ounces Equivalent Resource Tonnes Copper Gold Silver Gold Silver Ounces(1) Category (M: 10.80, +0.36, +3.44%) % g/t g/t (000's)(3) (000's)(3) (000's)(3) -------------------------------------------------------------------------- Measured(2) 11.46 1.78 0.66 6.85 240 2,520 19,320 -------------------------------------------------------------------------- Indicated(2) 7.83 0.91 0.29 3.24 70 820 5,720 -------------------------------------------------------------------------- Measured + Indicated(2) 19.28 1.42 0.51 5.38 320 3,340 25,740 -------------------------------------------------------------------------- Inferred(2) 15.07 0.89 0.25 2.61 120 1,260 9,660 -------------------------------------------------------------------------- (1) Silver equivalent ounces are calculated by using a ratio of 1 ounce of gold is equivalent to 70 ounces of silver. (2) Resources are reported using a 0.5% Cu cutoff. (3) Rounded to nearest ten thousand
The mineral resources discussed in this new release were estimated by Lions Gate Geological Consulting Inc. (LGGC). Ali Shahkar P.Eng. and Susan Lomas, P. Geol. of LGGC are the Qualified Persons under National Instrument 43-101 responsible for the estimates and has reviewed the information in this release in respect of mineral resource estimates. See Sherwood Copper's news release dated June 17, 2008 for additional information in respect of the resource estimates.
CONFERENCE CALL Silverstone will host a conference call today - Friday, November 7, 2008 - at 9:30am Pacific Time (12:30pm Eastern Time) to discuss this acquisition. The conference call may be accessed by dialing 1.866.497.3339 in North America or 1.416.849.7332 Internationally. Please ask for the Silverstone conference call. The conference call will be archived for later playback until November 14, 2008 and can be accessed by dialing 1.866.501.5559 and the pass code is 21288862#.
Mr. Hugh Willson, P.Geo., Vice-President, Exploration of Silverstone, who is a "qualified person" under National Instrument 43-101, has reviewed and approved the technical aspects of this news release. Silverstone will have an independent National Instrument 43-101 technical report prepared on the Minto mine within 45 days.
ABOUT SILVERSTONE
Silverstone is a silver and gold mining company with 100% of its revenue from precious metal production. Silverstone expects to have 2008 silver sales of approximately 2.0 million ounces and increasing to 4.5 million ounces silver equivalent(1) in 2009. More information is available online at: www.silverstonecorp.com.
This press release contains "forward-looking information" that is based on Silverstone's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Silverstone's mineral discoveries, plans, outlook and business strategy. The words "may", "would", "could", "should", "will", "likely", "expect," "anticipate," "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Silverstone's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: projected sales or production rates; uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Silverstone disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has neither approved or disapproved of the contents herein.
Contacts: Silverstone Resources Corp. Chris Tomanik (604) 637-8151 Email: ctomanik@silverstonecorp.com
Silverstone Resources Corp. Mark Patchett (604) 637-8151 (604) 688-2180 (FAX: 4.27, -0.08, -1.83%) Email: mpatchett@silverstonecorp.com Website: www.silverstonecorp.com
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
SOURCE: Silverstone Resources Corp
Copyright (c) 2008, HUGIN AS. All rights reserved.
Sherwood's Minto mine is a base metal mine (copper-gold-silver) located in the Yukon, Canada. The Minto mine reached commercial production in October 2007, increased mill throughput 50% by mid-April, 2008 and plans to process higher grades and to further increase mill throughput by early 2009. The mill at Minto is forecast to produce more than 30,000 ounces of payable gold and more than 300,000 ounces of payable silver in 2009, or approximately 2.4 million silver equivalent ounces(1).
Silverstone will purchase all of the gold and silver production from the Minto mine and, in exchange, Sherwood will receive an up-front payment from Silverstone of US$37.5 million, plus a further payment of the lesser of (a) US$300 per ounce of gold and US$3.90 per ounce of silver (subject to a 1% inflationary adjustment after 3 years and each year thereafter) and (b) the prevailing market price on the London Metal Exchange for each ounce delivered. US$12.5 million of the up-front payment will be advanced immediately and the balance within 14 days of the date of the letter of intent, subject to certain conditions. If production from the Minto mine exceeds 50,000 ounces of gold per year in the first two years of the agreement, or 30,000 ounces of gold per year thereafter, Silverstone will be entitled to purchase only 50% of the amount in excess of those thresholds. Kutcho Copper, Sherwood's wholly owned subsidiary that owns the Kutcho copper-zinc-silver-gold project in British Columbia, has also granted Silverstone a right of first refusal to purchase any gold and/or silver streams from the Kutcho project, should Kutcho Copper elect to sell such, on terms and conditions to be agreed by mutual consent.
In order to fund the US$37.5 million cash payment, in addition to US$28 million in cash on hand, Silverstone will draw on its US$15 million revolving line of credit through Scotia Capital.
"This transaction with Sherwood will more than double Silverstone's silver equivalent ounces in 2009. We are very pleased to have acquired this gold and silver production from the high grade Minto copper mine, which has the ability to add additional gold and silver ounces through its significant exploration potential. With this acquisition, Silverstone is able to continue to increase its growth profile at terms consistent with its previous acquisitions. We are fortunate to be able to utilize our existing cash, minimal leverage and no dilution to our shareholders," said Darren Pylot Silverstone's President and Chief Executive Officer.
Closing of the transaction is subject to certain conditions to be met by both companies and receipt of all regulatory approvals including acceptance by the TSX Venture exchange.
An advisory fee of US$375,000 is payable upon completion of the transaction. This fee can be paid in cash or common shares or any portion thereof at Silverstone's election.
The following tables set forth the estimated Proven and Probable Mineral Reserves and the Mineral Resources for the Minto mine as of June 17, 2008 based on drilling to the end of 2007. All reports referenced are available on www.sedar.com.
Current Proven and Probable Mineral Reserves for the Minto mine are tabulated below:
Minto Mine Proven and Probable Mineral Reserves (see notes 1,2)
-------------------------------------------------------------------------- Contained Contained Silver Ounces Ounces Equivalent Reserves Tonnes Copper Gold Silver Gold Silver Ounces(1) Category (M: 10.80, +0.36, +3.44%) % g/t g/t (000's) (000's) (000's) -------------------------------------------------------------------------- Proven(2) 8.22 2.01 0.77 7.98 203.6 2,110 16,362 -------------------------------------------------------------------------- Probable(2) 0.91 1.24 0.46 5.40 13.3 159 1,090 -------------------------------------------------------------------------- Proven + Probable(2) 9.13 1.93 0.74 7.73 216.9 2,267 17,452 -------------------------------------------------------------------------- (1) Silver equivalent ounces are calculated by using a ratio of 1 ounce of gold is equivalent to 70 ounces of silver. (2) Reserves are calculated using a 0.62% Cu cutoff.
Mineral reserves were calculated by MintoEx geology and engineering staff under the supervision of Dan Russell, P. Eng., Manager of Mining at the Minto Mine, who is the Qualified Person under National Instrument 43-101 responsible for the mineral reserve estimate, as detailed in Sherwood Copper's June 17, 2008 news release.
The measured, indicated and inferred mineral resources are tabulated below, and are inclusive of the proven and probable reserves:
Minto Mine Mineral Resources (see notes 1,2)
-------------------------------------------------------------------------- Contained Contained Silver Ounces Ounces Equivalent Resource Tonnes Copper Gold Silver Gold Silver Ounces(1) Category (M: 10.80, +0.36, +3.44%) % g/t g/t (000's)(3) (000's)(3) (000's)(3) -------------------------------------------------------------------------- Measured(2) 11.46 1.78 0.66 6.85 240 2,520 19,320 -------------------------------------------------------------------------- Indicated(2) 7.83 0.91 0.29 3.24 70 820 5,720 -------------------------------------------------------------------------- Measured + Indicated(2) 19.28 1.42 0.51 5.38 320 3,340 25,740 -------------------------------------------------------------------------- Inferred(2) 15.07 0.89 0.25 2.61 120 1,260 9,660 -------------------------------------------------------------------------- (1) Silver equivalent ounces are calculated by using a ratio of 1 ounce of gold is equivalent to 70 ounces of silver. (2) Resources are reported using a 0.5% Cu cutoff. (3) Rounded to nearest ten thousand
The mineral resources discussed in this new release were estimated by Lions Gate Geological Consulting Inc. (LGGC). Ali Shahkar P.Eng. and Susan Lomas, P. Geol. of LGGC are the Qualified Persons under National Instrument 43-101 responsible for the estimates and has reviewed the information in this release in respect of mineral resource estimates. See Sherwood Copper's news release dated June 17, 2008 for additional information in respect of the resource estimates.
CONFERENCE CALL Silverstone will host a conference call today - Friday, November 7, 2008 - at 9:30am Pacific Time (12:30pm Eastern Time) to discuss this acquisition. The conference call may be accessed by dialing 1.866.497.3339 in North America or 1.416.849.7332 Internationally. Please ask for the Silverstone conference call. The conference call will be archived for later playback until November 14, 2008 and can be accessed by dialing 1.866.501.5559 and the pass code is 21288862#.
Mr. Hugh Willson, P.Geo., Vice-President, Exploration of Silverstone, who is a "qualified person" under National Instrument 43-101, has reviewed and approved the technical aspects of this news release. Silverstone will have an independent National Instrument 43-101 technical report prepared on the Minto mine within 45 days.
ABOUT SILVERSTONE
Silverstone is a silver and gold mining company with 100% of its revenue from precious metal production. Silverstone expects to have 2008 silver sales of approximately 2.0 million ounces and increasing to 4.5 million ounces silver equivalent(1) in 2009. More information is available online at: www.silverstonecorp.com.
This press release contains "forward-looking information" that is based on Silverstone's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Silverstone's mineral discoveries, plans, outlook and business strategy. The words "may", "would", "could", "should", "will", "likely", "expect," "anticipate," "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Silverstone's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: projected sales or production rates; uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Silverstone disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has neither approved or disapproved of the contents herein.
Contacts: Silverstone Resources Corp. Chris Tomanik (604) 637-8151 Email: ctomanik@silverstonecorp.com
Silverstone Resources Corp. Mark Patchett (604) 637-8151 (604) 688-2180 (FAX: 4.27, -0.08, -1.83%) Email: mpatchett@silverstonecorp.com Website: www.silverstonecorp.com
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
SOURCE: Silverstone Resources Corp
Copyright (c) 2008, HUGIN AS. All rights reserved.
Wednesday, November 5, 2008
Silver Standard Reports Third Quarter 2008 Results
VANCOUVER, BRITISH COLUMBIA, Nov 05, 2008 (MARKET WIRE via COMTEX) -- Silver Standard Resources Inc. (CA:SSO) provides the following principal project updates and reports on financial highlights from the company's third quarter of 2008.
Pirquitas Mine Construction
The Pirquitas Project continues on track with commissioning of infrastructure systems commenced and process commissioning set for December. Production is on target for the first quarter of 2009.
Principal Projects
At Pitarrilla, the company continues to expand measured and indicated silver resources at the Breccia Ridge Zone through infill drilling. In August, the company reported total project resources had increased by a total of 26% over the November 2007 resource update, placing Pitarrilla among the largest silver discoveries in the last decade. A pre-feasibility study is in the process of completion, and its delivery is expected in the current quarter.
Feasibility work at the San Luis joint venture project in Peru and diamond drilling for the Diablillos project in Argentina are underway to advance the projects. Updated resource estimates for both projects will follow. Drilling at the Snowfield project in northern British Columbia was completed in early October and an updated resource estimate is anticipated in the first quarter of 2009.
Financial Highlights
(All figures are in Canadian dollars unless otherwise noted)
- Silver Standard recorded earnings of $11.2 million or $0.18 per share for the three months ended September 30, 2008 compared to a loss of $13.4 million or $0.21 per share for the same period in the prior year.
- For the three months ended September 30, 2008, property expenditures totalled $65.6 million including $47.0 million for construction and mining equipment (project to date of US$148 million) and $4.0 million for exploration at the Pirquitas property in Argentina; $5.8 million for exploration at Pitarrilla in Mexico; $4.7 million for exploration at the Snowfield property in Canada; $2.1 million for exploration at the San Luis property in Peru; and $1.5 million for exploration at the Diablillos property in Argentina.
- Working capital at September 30 was $130.2 million compared to $117.3 million at December 31, 2007. Cash and cash equivalents were $145.0 million compared to $80.6 million at year-end. In the first quarter, the company completed a convertible debt financing and the sale of silver bullion, and in the third quarter the sale of the Shafter project in Texas.
- In July the company closed the sale of the Shafter property to Aurcana Corporation. Under the terms of the sale agreement, Aurcana paid $23 million in cash, 15 million Aurcana common shares and a $10 million convertible debenture. The transaction resulted in an approximate gain of $31.5 million, for an after-tax gain of $18.2 million.
-----------------------------------------------------------------------
---
Selected Financial Data
(CDN$000's, except per share amounts)
This summary of selected financial data should be read in conjunction with
the management discussion and analysis ("MD&A") of the unaudited
consolidated operating results and financial condition of the company for
the three months ended September 30, 2008 and December 31, 2007.
--------------------------------------------------------------------------
Three Months Nine Months
Ended September 30 Ended September 30
--------------------------------------------------------------------------
2008 2007 2008 2007
--------------------------------------------------------------------------
Earnings (Loss) 11,212 (13,356) 6,913 (21,053)
--------------------------------------------------------------------------
Earnings (Loss) per share
(basic and diluted) 0.18 (0.21) 0.11 (0.34)
--------------------------------------------------------------------------
Cash used in operating activities (3,816) (1,651) (3,628) (2,374)
--------------------------------------------------------------------------
Cash generated by financing activities 227 1,008 135,172 7,324
--------------------------------------------------------------------------
Cash used in mineral property costs,
property, plant and equipment (53,903) (20,415) (121,047) (60,586)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Financial Position September 30, 2008 December 31, 2007
--------------------------------------------------------------------------
Cash and cash equivalents 144,987 80,629
--------------------------------------------------------------------------
Silver bullion - 15,787
--------------------------------------------------------------------------
Marketable securities 16,064 33,209
--------------------------------------------------------------------------
Current assets - total 171,067 132,981
--------------------------------------------------------------------------
Other investments - ABCP 26,700 45,102
--------------------------------------------------------------------------
Current assets and ABCP - total 197,767 178,083
--------------------------------------------------------------------------
Current liabilities - total 40,823 15,713
--------------------------------------------------------------------------
Working capital 130,244 117,268
--------------------------------------------------------------------------
Total assets 671,289 498,844
--------------------------------------------------------------------------
Principal Project Updates
Mina Pirquitas, Jujuy, Argentina: The Pirquitas Project continues on track with commissioning of infrastructure systems commenced and process commissioning set for December. Shipment of concentrate is on target for the first quarter of 2009.
The natural gas pipeline has been pressure tested and final installation of the pressure reducing stations will be completed in November. The process water extraction system, along with the water pipeline, power line and the process water pond, have been completed and are fully commissioned. The assay laboratory was completed during the quarter and handed over to Operations.
A highlight during the quarter was the successful transport of the ball mill and Wartsila generators to site. The three primary gas-fired Wartsila generators, and three diesel back-up Cummins generators, have been installed in the power station and are being commissioned.
The process building and ball mill conversion/installation are on schedule. The silver line has been advanced in the construction schedule and will be the initial stream to start up. The silver flotation cells installation is progressing well and on schedule for first quarter 2009 production. Installation of the tin circuit will follow installation of the silver circuit.
Exploration drilling on the periphery of the planned pit continues to underscore the significant potential of the property to host additional mineralization. The bottom half of diamond drill hole 99 intersected 64 meters of 223 grams of silver per tonne (6.5 ounces of silver per ton) and 8.1% zinc, including 33 meters of 322 grams of silver per tonne (9.4 ounces of silver per ton) and 11.3% zinc. The top half of the hole and tin assays are pending. The vein is open along strike and to depth. Hole 315, drilled on the eastern margin of the pit, intersected 16 meters grading 526 grams of silver per tonne (15.3 ounces of silver per ton) and 4.4% zinc.
As of September 30, 2008, we had expended US$148 million of the total estimated construction costs of US$220 million.
San Luis, Ancash, Peru: The joint venture is expecting a new resource estimate in the fourth quarter incorporating all previously available assay data, including additional drill results not included in the previous resource estimate.
Diamond drilling for 2008 has been completed on this large property package (approximately 96 sq. miles). Exploration targets included the BP Zone where brecciated volcanic rocks hosting copper-zinc-lead sulphide mineralization have been sampled over a broad area. Other targets include quartz vein systems where channel sampling has identified structures enriched in gold and silver, and drill testing remains a priority. A feasibility study on the Ayelen Vein has commenced.
Silver Standard presently holds a 55% interest in the San Luis project and has elected to increase its interest to 70% by completing a feasibility study. Silver Standard has the right to increase its interest in the San Luis project to 80% by placing the project in production.
Pitarrilla, Durango, Mexico: With the increase in resources reported in August, measured resources now total 159.9 million ounces of silver, indicated resources total 483.7 million ounces of silver and inferred resources total 82.3 million ounces of silver. Work on a decline to provide underground drilling stations for the high-grade silver and base metal mineralization of the Breccia Ridge Zone is continuing.
An engineering pre-feasibility study is nearing completion and focuses on the economics of developing the underground sulphide-associated, base metal and silver mineralization found at Breccia Ridge as well as in a number of satellite zones.
Diablillos, Salta, Argentina: The company is completing a further 5,000 meter program of diamond drilling at its wholly-owned Diablillos silver-gold project to better define the inferred resource of 93.8 million ounces of silver resources and 815,000 ounces of gold resources. An updated resource estimate is anticipated in early 2009. This will be followed by a pre-feasibility engineering study to estimate the economics of placing the Diablillos project into production. Snowfield, British Columbia, Canada: A 31-hole, 16,945-meter diamond drill program, completed in October, successfully outlined a new gold-copper zone called Snowfield North. This zone measures approximately 700 meters by 800 meters and lies 500 meters east of Seabridge Gold's Mitchell Deposit. Highlights of the 2008 Snowfield North program include:
- MZ-10 which intersected 620 meters of 0.75 grams of gold and 0.17% copper per tonne, including 164 meters of 1.04 grams of gold per tonne and 0.18% copper;
- MZ-13 which intersected 425 meters of 0.95 grams of gold per tonne and 0.20% copper, including 117 meters of 1.19 grams of gold and 0.27% copper per tonne;
- MZ-20 which intersected 662 meters of 0.86 grams of gold per tonne and 0.18% copper, including 205 meters averaging 1.07 grams of gold per tonne and 0.18% copper.
Further results are pending for holes that tested the continuity of the Snowfield North Zone, which is open to the east and south, with deeper copper-gold intervals encountered in the 2007 Snowfield Zone program. A resource estimate is expected in 2009.
Management Discussion & Analysis and Conference Call
For the full Third Quarter 2008 report, including Management Discussion & Analysis, visit www.sedar.com or the company's web site at www.silverstandard.com. A conference call with management to review Third Quarter 2008 financial results and project activities is scheduled on Wednesday, November 5, 2008 at 10:30 a.m. EDT.
Toll-free in North America: 1-866-400-3310
Toronto local and overseas: 1-416-850-9144
This call will also be web-cast and can be accessed at the following web location:
http://events.snwebcastcenter.com/silverstandard/20081105/.
The call will be archived and available at www.silverstandard.com after November 5, 2008.
Audio replay will be available for one week by calling toll free in North America: 1-866-245-6755, passcode 35646; local and overseas callers may telephone 1-416-915-1035, passcode 35646. (Source: Silver Standard Resources Inc.)
Cautionary note to U.S. investors: The terms "measured mineral resource", "indicated mineral resource", and "inferred mineral resource" used in this news release are Canadian geological and mining terms as defined in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves. We advise U.S. investors that while such terms are recognized and required under Canadian regulations, the U.S. Securities and Exchange Commission (the "SEC") does not recognize these terms. "Inferred mineral resources" in particular have a great amount of uncertainty as to their economic feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules estimates of inferred mineral resources may not generally form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that any part or all of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of contained metal expressed in ounces is in compliance with NI 43-101, but does not meet the requirements of Industry Guide 7 of the SEC, which will only accept the disclosure of tonnage and grade estimates for non-reserve mineralization.
Contacts:
Silver Standard Resources Inc.
Robert A. Quartermain
President
(604) 689-3846
(604) 689-3847 (FAX)
Silver Standard Resources Inc.
Paul LaFontaine
Director, Investor Relations
(604) 484-8212 or N.A. Toll Free: 1-888-338-0046
Email: invest@silverstandard.com
Website: www.silverstandard.com
SOURCE: Silver Standard Resources Inc.
mailto:invest@silverstandard.com
http://www.silverstandard.com
Copyright 2008 Market Wire, All rights reserved.
Pirquitas Mine Construction
The Pirquitas Project continues on track with commissioning of infrastructure systems commenced and process commissioning set for December. Production is on target for the first quarter of 2009.
Principal Projects
At Pitarrilla, the company continues to expand measured and indicated silver resources at the Breccia Ridge Zone through infill drilling. In August, the company reported total project resources had increased by a total of 26% over the November 2007 resource update, placing Pitarrilla among the largest silver discoveries in the last decade. A pre-feasibility study is in the process of completion, and its delivery is expected in the current quarter.
Feasibility work at the San Luis joint venture project in Peru and diamond drilling for the Diablillos project in Argentina are underway to advance the projects. Updated resource estimates for both projects will follow. Drilling at the Snowfield project in northern British Columbia was completed in early October and an updated resource estimate is anticipated in the first quarter of 2009.
Financial Highlights
(All figures are in Canadian dollars unless otherwise noted)
- Silver Standard recorded earnings of $11.2 million or $0.18 per share for the three months ended September 30, 2008 compared to a loss of $13.4 million or $0.21 per share for the same period in the prior year.
- For the three months ended September 30, 2008, property expenditures totalled $65.6 million including $47.0 million for construction and mining equipment (project to date of US$148 million) and $4.0 million for exploration at the Pirquitas property in Argentina; $5.8 million for exploration at Pitarrilla in Mexico; $4.7 million for exploration at the Snowfield property in Canada; $2.1 million for exploration at the San Luis property in Peru; and $1.5 million for exploration at the Diablillos property in Argentina.
- Working capital at September 30 was $130.2 million compared to $117.3 million at December 31, 2007. Cash and cash equivalents were $145.0 million compared to $80.6 million at year-end. In the first quarter, the company completed a convertible debt financing and the sale of silver bullion, and in the third quarter the sale of the Shafter project in Texas.
- In July the company closed the sale of the Shafter property to Aurcana Corporation. Under the terms of the sale agreement, Aurcana paid $23 million in cash, 15 million Aurcana common shares and a $10 million convertible debenture. The transaction resulted in an approximate gain of $31.5 million, for an after-tax gain of $18.2 million.
-----------------------------------------------------------------------
---
Selected Financial Data
(CDN$000's, except per share amounts)
This summary of selected financial data should be read in conjunction with
the management discussion and analysis ("MD&A") of the unaudited
consolidated operating results and financial condition of the company for
the three months ended September 30, 2008 and December 31, 2007.
--------------------------------------------------------------------------
Three Months Nine Months
Ended September 30 Ended September 30
--------------------------------------------------------------------------
2008 2007 2008 2007
--------------------------------------------------------------------------
Earnings (Loss) 11,212 (13,356) 6,913 (21,053)
--------------------------------------------------------------------------
Earnings (Loss) per share
(basic and diluted) 0.18 (0.21) 0.11 (0.34)
--------------------------------------------------------------------------
Cash used in operating activities (3,816) (1,651) (3,628) (2,374)
--------------------------------------------------------------------------
Cash generated by financing activities 227 1,008 135,172 7,324
--------------------------------------------------------------------------
Cash used in mineral property costs,
property, plant and equipment (53,903) (20,415) (121,047) (60,586)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Financial Position September 30, 2008 December 31, 2007
--------------------------------------------------------------------------
Cash and cash equivalents 144,987 80,629
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Silver bullion - 15,787
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Marketable securities 16,064 33,209
--------------------------------------------------------------------------
Current assets - total 171,067 132,981
--------------------------------------------------------------------------
Other investments - ABCP 26,700 45,102
--------------------------------------------------------------------------
Current assets and ABCP - total 197,767 178,083
--------------------------------------------------------------------------
Current liabilities - total 40,823 15,713
--------------------------------------------------------------------------
Working capital 130,244 117,268
--------------------------------------------------------------------------
Total assets 671,289 498,844
--------------------------------------------------------------------------
Principal Project Updates
Mina Pirquitas, Jujuy, Argentina: The Pirquitas Project continues on track with commissioning of infrastructure systems commenced and process commissioning set for December. Shipment of concentrate is on target for the first quarter of 2009.
The natural gas pipeline has been pressure tested and final installation of the pressure reducing stations will be completed in November. The process water extraction system, along with the water pipeline, power line and the process water pond, have been completed and are fully commissioned. The assay laboratory was completed during the quarter and handed over to Operations.
A highlight during the quarter was the successful transport of the ball mill and Wartsila generators to site. The three primary gas-fired Wartsila generators, and three diesel back-up Cummins generators, have been installed in the power station and are being commissioned.
The process building and ball mill conversion/installation are on schedule. The silver line has been advanced in the construction schedule and will be the initial stream to start up. The silver flotation cells installation is progressing well and on schedule for first quarter 2009 production. Installation of the tin circuit will follow installation of the silver circuit.
Exploration drilling on the periphery of the planned pit continues to underscore the significant potential of the property to host additional mineralization. The bottom half of diamond drill hole 99 intersected 64 meters of 223 grams of silver per tonne (6.5 ounces of silver per ton) and 8.1% zinc, including 33 meters of 322 grams of silver per tonne (9.4 ounces of silver per ton) and 11.3% zinc. The top half of the hole and tin assays are pending. The vein is open along strike and to depth. Hole 315, drilled on the eastern margin of the pit, intersected 16 meters grading 526 grams of silver per tonne (15.3 ounces of silver per ton) and 4.4% zinc.
As of September 30, 2008, we had expended US$148 million of the total estimated construction costs of US$220 million.
San Luis, Ancash, Peru: The joint venture is expecting a new resource estimate in the fourth quarter incorporating all previously available assay data, including additional drill results not included in the previous resource estimate.
Diamond drilling for 2008 has been completed on this large property package (approximately 96 sq. miles). Exploration targets included the BP Zone where brecciated volcanic rocks hosting copper-zinc-lead sulphide mineralization have been sampled over a broad area. Other targets include quartz vein systems where channel sampling has identified structures enriched in gold and silver, and drill testing remains a priority. A feasibility study on the Ayelen Vein has commenced.
Silver Standard presently holds a 55% interest in the San Luis project and has elected to increase its interest to 70% by completing a feasibility study. Silver Standard has the right to increase its interest in the San Luis project to 80% by placing the project in production.
Pitarrilla, Durango, Mexico: With the increase in resources reported in August, measured resources now total 159.9 million ounces of silver, indicated resources total 483.7 million ounces of silver and inferred resources total 82.3 million ounces of silver. Work on a decline to provide underground drilling stations for the high-grade silver and base metal mineralization of the Breccia Ridge Zone is continuing.
An engineering pre-feasibility study is nearing completion and focuses on the economics of developing the underground sulphide-associated, base metal and silver mineralization found at Breccia Ridge as well as in a number of satellite zones.
Diablillos, Salta, Argentina: The company is completing a further 5,000 meter program of diamond drilling at its wholly-owned Diablillos silver-gold project to better define the inferred resource of 93.8 million ounces of silver resources and 815,000 ounces of gold resources. An updated resource estimate is anticipated in early 2009. This will be followed by a pre-feasibility engineering study to estimate the economics of placing the Diablillos project into production. Snowfield, British Columbia, Canada: A 31-hole, 16,945-meter diamond drill program, completed in October, successfully outlined a new gold-copper zone called Snowfield North. This zone measures approximately 700 meters by 800 meters and lies 500 meters east of Seabridge Gold's Mitchell Deposit. Highlights of the 2008 Snowfield North program include:
- MZ-10 which intersected 620 meters of 0.75 grams of gold and 0.17% copper per tonne, including 164 meters of 1.04 grams of gold per tonne and 0.18% copper;
- MZ-13 which intersected 425 meters of 0.95 grams of gold per tonne and 0.20% copper, including 117 meters of 1.19 grams of gold and 0.27% copper per tonne;
- MZ-20 which intersected 662 meters of 0.86 grams of gold per tonne and 0.18% copper, including 205 meters averaging 1.07 grams of gold per tonne and 0.18% copper.
Further results are pending for holes that tested the continuity of the Snowfield North Zone, which is open to the east and south, with deeper copper-gold intervals encountered in the 2007 Snowfield Zone program. A resource estimate is expected in 2009.
Management Discussion & Analysis and Conference Call
For the full Third Quarter 2008 report, including Management Discussion & Analysis, visit www.sedar.com or the company's web site at www.silverstandard.com. A conference call with management to review Third Quarter 2008 financial results and project activities is scheduled on Wednesday, November 5, 2008 at 10:30 a.m. EDT.
Toll-free in North America: 1-866-400-3310
Toronto local and overseas: 1-416-850-9144
This call will also be web-cast and can be accessed at the following web location:
http://events.snwebcastcenter.com/silverstandard/20081105/.
The call will be archived and available at www.silverstandard.com after November 5, 2008.
Audio replay will be available for one week by calling toll free in North America: 1-866-245-6755, passcode 35646; local and overseas callers may telephone 1-416-915-1035, passcode 35646. (Source: Silver Standard Resources Inc.)
Cautionary note to U.S. investors: The terms "measured mineral resource", "indicated mineral resource", and "inferred mineral resource" used in this news release are Canadian geological and mining terms as defined in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves. We advise U.S. investors that while such terms are recognized and required under Canadian regulations, the U.S. Securities and Exchange Commission (the "SEC") does not recognize these terms. "Inferred mineral resources" in particular have a great amount of uncertainty as to their economic feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules estimates of inferred mineral resources may not generally form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that any part or all of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of contained metal expressed in ounces is in compliance with NI 43-101, but does not meet the requirements of Industry Guide 7 of the SEC, which will only accept the disclosure of tonnage and grade estimates for non-reserve mineralization.
Contacts:
Silver Standard Resources Inc.
Robert A. Quartermain
President
(604) 689-3846
(604) 689-3847 (FAX)
Silver Standard Resources Inc.
Paul LaFontaine
Director, Investor Relations
(604) 484-8212 or N.A. Toll Free: 1-888-338-0046
Email: invest@silverstandard.com
Website: www.silverstandard.com
SOURCE: Silver Standard Resources Inc.
mailto:invest@silverstandard.com
http://www.silverstandard.com
Copyright 2008 Market Wire, All rights reserved.
Tuesday, November 4, 2008
Jim Rogers Prefers Silver over Gold This Year
With large funds, central banks and the IMF looking to sell gold to raise cash, along with the way silver has plunged, Jim Rogers says he thinks if he was forced to choose between the two, silver will probably outperform gold this year.
“Silver will do better than gold,” Rogers, chairman of Singapore-based Rogers Holdings, said on Monday in an interview. “It’s been beaten down horribly. If you put a gun to my head and said you have to buy one, I would buy silver rather than gold.”
Assuming member countries of the IMF will vote to sell the 403.3 metric tons of gold they agreed upon in May, that could definitely drive the price of gold down even further, which would be a good time to get back into it.
Even though Rogers thinks silver will be better than gold, he added he will get back into gold if downward pressure on price continues.
“Silver will do better than gold,” Rogers, chairman of Singapore-based Rogers Holdings, said on Monday in an interview. “It’s been beaten down horribly. If you put a gun to my head and said you have to buy one, I would buy silver rather than gold.”
Assuming member countries of the IMF will vote to sell the 403.3 metric tons of gold they agreed upon in May, that could definitely drive the price of gold down even further, which would be a good time to get back into it.
Even though Rogers thinks silver will be better than gold, he added he will get back into gold if downward pressure on price continues.
Endeavour Silver Third Quarter Financial Results to Be Released November 14, 2008, Conference Call Scheduled for November 17, 2008
VANCOUVER, BRITISH COLUMBIA, Nov 04, 2008 (MARKET WIRE via COMTEX) -- Endeavour Silver Corp. (EDR.TO) (NYSE-A: EXK)(DBFrankfurt:EJD) plans to release its third quarter financial results on Friday November 14, 2008, after 1:00 PM Pacific Time. A conference call to discuss the results will be held at 10:00 AM Pacific Time (1:00 PM Eastern Time) the following business day, Monday November 17.
To participate in the conference call, please dial the following:
- 1-800-396-7098 Canada and USA (Toll-free)
- 416-620-3447 Toronto area callers
- No pass code necessary
A replay of the conference call will be available until November 28, 2008 by dialing 1-800-408-3053 in Canada & USA (Toll-free) or 416-695-5800 in the Toronto area. The required pass code is 3274608.
A simultaneous webcast of the conference call will be posted on the home page of the company's website, www.edrsilver.com.
Endeavour Silver Corp. (EDR.TO) (NYSE-A: EXK)(DBFrankfurt:EJD) is a Canadian silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango and Guanajuato in Guanajuato State, coupled with the Company's aggressive acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of top primary silver producers worldwide.
On Behalf of the Board of Directors,
ENDEAVOUR SILVER CORP.
Bradford J. Cooke, Chairman and CEO
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.
The TSX Exchange has neither approved nor disapproved the contents of this news release.
Contacts:
Endeavour Silver Corp.
Hugh Clarke
(604) 685-9775 or Toll Free: 1-877-685-9775
(604) 685-9744 (FAX)
Email: hugh@edrsilver.com
Website: www.edrsilver.com
SOURCE: Endeavour Silver Corp.
mailto:hugh@edrsilver.com
Copyright 2008 Market Wire, All rights reserved.
To participate in the conference call, please dial the following:
- 1-800-396-7098 Canada and USA (Toll-free)
- 416-620-3447 Toronto area callers
- No pass code necessary
A replay of the conference call will be available until November 28, 2008 by dialing 1-800-408-3053 in Canada & USA (Toll-free) or 416-695-5800 in the Toronto area. The required pass code is 3274608.
A simultaneous webcast of the conference call will be posted on the home page of the company's website, www.edrsilver.com.
Endeavour Silver Corp. (EDR.TO) (NYSE-A: EXK)(DBFrankfurt:EJD) is a Canadian silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango and Guanajuato in Guanajuato State, coupled with the Company's aggressive acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of top primary silver producers worldwide.
On Behalf of the Board of Directors,
ENDEAVOUR SILVER CORP.
Bradford J. Cooke, Chairman and CEO
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.
The TSX Exchange has neither approved nor disapproved the contents of this news release.
Contacts:
Endeavour Silver Corp.
Hugh Clarke
(604) 685-9775 or Toll Free: 1-877-685-9775
(604) 685-9744 (FAX)
Email: hugh@edrsilver.com
Website: www.edrsilver.com
SOURCE: Endeavour Silver Corp.
mailto:hugh@edrsilver.com
Copyright 2008 Market Wire, All rights reserved.
Monday, November 3, 2008
U.S. Silver Announces Management Changes and Reports a Strategic Review of Operations and a Reduction in the Workforce at the Galena Mine
TORONTO, ONTARIO, Nov 03, 2008 (MARKET WIRE via COMTEX) -- U.S. Silver Corporation ("US Silver" or the "Company") is pleased to announce that Thomas Parker will become the Company's interim Chief Executive Officer ("CEO") effective immediately. Mr. Bruce Reid, the former CEO, will remain as a consultant to the Company. Mr. Reid was instrumental in the creation of U.S. Silver in 2006 and facilitated access to financing for the Company. He has served the Company with distinction and dedication over the past two years providing the leadership necessary for the Galena Mine to achieve a significant turnaround.
Mr. Reid commented, "U.S. Silver is extremely fortunate to have procured the services of someone with Tom's proven background and experience. With current market conditions, it is time for someone with a strong operating background to guide the Company towards its objective of returning the Galena mine to full profitability in a difficult commodity market." Bobby Cooper, Chairman of the Board (an Electrical Engineer with a Business Degree, not a Mining Engineer as mistakenly reported), added "Mr. Parker's hands-on experience will serve the Company well in these tough times."
Mr. Parker is a Mining Engineer with over 40 years of direct involvement in the mining industry. He has extensive experience with both public and private companies. Most recently, Mr. Parker served as President and CEO of Gold Crest Mines Inc. He was CEO of High Plains Uranium Inc. from 2006 until that company was acquired in early 2007. Prior to that, Mr. Parker was Vice President of Anderson and Schwab, a New York based management consultancy specializing in the mining sector. He also worked at Costain Coal Inc. where he was President and CEO in the early 1990s.
Strategic Review and Workforce Reduction
The Company has undertaken a strategic examination of its Silver Valley Operations in Northern Idaho as a result of the change in commodity demand and prices as well as the resulting challenging outlook for equity markets. Consequently, there has been a cessation of all capital projects with the exception of the rehabilitation of the Galena Shaft, where work is now being done at approximately 25% of the previous monthly cost. Nearly 700 feet of shaft have been repaired and only 150 feet remain to be rehabilitated. The completion is now expected during the second quarter of 2009, which should lead to greater operating efficiencies and lower mining costs.
The Company has released four contractor groups that were working at the Galena Mine. The Company has also downsized the number of hourly workers by approximately 30 employees and the number of office staff by approximately 15 employees. The reduction in force was not performance based, but as a result of a restructuring of the Galena operation to match costs with expected revenues.
US Silver is also consolidating milling at the continuously operated Galena Mill. The rehabilitated Coeur Mill will remain in production until the number 3 circuit of the Galena Mill begins production this week. At that time, all milling will occur at the Galena Mill, resulting in more efficient operations, a cessation of the trucking of newly mined ore and lower operating costs. To further increase milling efficiency and improve gross margins, the Company will operate the Galena Mill at full capacity by also milling supplementary, already stockpiled, low-grade ore.
The entire Company is now concentrating on making the operations cost effective in order to generate positive gross margins, especially with respect to improving tonnage, ore grade and mill efficiency. As a result, certain levels of the mine will be closed and those levels that will provide the greatest positive gross margins at current metals prices will be mined first. A renewed focus will be placed on the effectiveness of the supervisors and miners to ensure that the right tools and processes are utilized. Other initiatives include the cessation of exploration drilling while existing backlogs of drill core are analyzed; the utilization of better financial tools for enhanced mine analysis; and the development of ore bodies with long-term production potential.
ABOUT U.S. SILVER CORPORATION
U.S. Silver, through its wholly owned subsidiaries, owns and operates the Galena, Coeur, and Caladay silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver producer in U.S. history. Total silver production from U.S. Silver's mining complex has exceeded 210 million ounces of silver production since 1953. U.S. Silver controls a land package now totaling approximately 18,000 acres in the heart of the Coeur d'Alene Mining District.
The Company is currently debt free and has roughly $8 million in working capital.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
U.S. Silver Corporation
Tom Parker
Chief Executive Officer
(208) 752-0400
Website: www.us-silver.com
SOURCE: U.S. Silver Corporation
Copyright 2008 Market Wire, All rights reserved.
Mr. Reid commented, "U.S. Silver is extremely fortunate to have procured the services of someone with Tom's proven background and experience. With current market conditions, it is time for someone with a strong operating background to guide the Company towards its objective of returning the Galena mine to full profitability in a difficult commodity market." Bobby Cooper, Chairman of the Board (an Electrical Engineer with a Business Degree, not a Mining Engineer as mistakenly reported), added "Mr. Parker's hands-on experience will serve the Company well in these tough times."
Mr. Parker is a Mining Engineer with over 40 years of direct involvement in the mining industry. He has extensive experience with both public and private companies. Most recently, Mr. Parker served as President and CEO of Gold Crest Mines Inc. He was CEO of High Plains Uranium Inc. from 2006 until that company was acquired in early 2007. Prior to that, Mr. Parker was Vice President of Anderson and Schwab, a New York based management consultancy specializing in the mining sector. He also worked at Costain Coal Inc. where he was President and CEO in the early 1990s.
Strategic Review and Workforce Reduction
The Company has undertaken a strategic examination of its Silver Valley Operations in Northern Idaho as a result of the change in commodity demand and prices as well as the resulting challenging outlook for equity markets. Consequently, there has been a cessation of all capital projects with the exception of the rehabilitation of the Galena Shaft, where work is now being done at approximately 25% of the previous monthly cost. Nearly 700 feet of shaft have been repaired and only 150 feet remain to be rehabilitated. The completion is now expected during the second quarter of 2009, which should lead to greater operating efficiencies and lower mining costs.
The Company has released four contractor groups that were working at the Galena Mine. The Company has also downsized the number of hourly workers by approximately 30 employees and the number of office staff by approximately 15 employees. The reduction in force was not performance based, but as a result of a restructuring of the Galena operation to match costs with expected revenues.
US Silver is also consolidating milling at the continuously operated Galena Mill. The rehabilitated Coeur Mill will remain in production until the number 3 circuit of the Galena Mill begins production this week. At that time, all milling will occur at the Galena Mill, resulting in more efficient operations, a cessation of the trucking of newly mined ore and lower operating costs. To further increase milling efficiency and improve gross margins, the Company will operate the Galena Mill at full capacity by also milling supplementary, already stockpiled, low-grade ore.
The entire Company is now concentrating on making the operations cost effective in order to generate positive gross margins, especially with respect to improving tonnage, ore grade and mill efficiency. As a result, certain levels of the mine will be closed and those levels that will provide the greatest positive gross margins at current metals prices will be mined first. A renewed focus will be placed on the effectiveness of the supervisors and miners to ensure that the right tools and processes are utilized. Other initiatives include the cessation of exploration drilling while existing backlogs of drill core are analyzed; the utilization of better financial tools for enhanced mine analysis; and the development of ore bodies with long-term production potential.
ABOUT U.S. SILVER CORPORATION
U.S. Silver, through its wholly owned subsidiaries, owns and operates the Galena, Coeur, and Caladay silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver producer in U.S. history. Total silver production from U.S. Silver's mining complex has exceeded 210 million ounces of silver production since 1953. U.S. Silver controls a land package now totaling approximately 18,000 acres in the heart of the Coeur d'Alene Mining District.
The Company is currently debt free and has roughly $8 million in working capital.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
U.S. Silver Corporation
Tom Parker
Chief Executive Officer
(208) 752-0400
Website: www.us-silver.com
SOURCE: U.S. Silver Corporation
Copyright 2008 Market Wire, All rights reserved.
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