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Mining Silver and Gold
Total production at the San José mine increased to 4,998,000 ounces of silver and 77,070 ounces of gold, of which 49% is attributable to Minera Andes. Compared to 2008, the 2009 year end silver and gold production was 14% and 42% higher, respectively. During the fourth quarter, the San José mine produced 1,032,000 ounces of silver and 19,960 ounces of gold.
Fourth quarter 2009 silver production was 26% lower and gold production was 11% lower compared to the third quarter of 2009. The decrease in silver and gold production was the result of a loss of 15 days in October due to labour disruptions as well as lower head grades for silver. The labour issues have been settled, and the mine is currently operating closer to capacity.
Compared to the same quarter last year, the fourth quarter 2009 silver production decreased 22% and gold increased 15% mainly because of a decrease in silver head grades and an increase in gold head grades. Mill throughput in the fourth quarter of 2009 was 18% lower than the level of the previous quarter and 7% lower compared to the fourth quarter of 2008 again largely due to the labour disruptions.
A major milestone was achieved at the San José mine when the Kospi vein was finally brought into production at the end of June.
San Jose - A Minera Andes Discovery
Minera Andes' geologists discovered the mineralized system on which the San Jose silver/gold mine is now located. This success has allowed Minera Andes to make the transition from a pure exploration company to a company that also receives income from an operating silver/gold mine. Located within a 99,000-acre mineralized region, San Jose is a joint venture between Minera Andes (49 percent ownership) and Hochschild Mining (51percent). The mine produced 77,070 ounces of gold and 4.9 million ounces of silver in 2009, of which 49 percent is attributable to Minera Andes. Ore from the mine, which is relatively high-grade at about one-half-ounce gold equivalent per tonne, is vein-hosted.
Reserves and Resources
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