VANCOUVER – Development stage miner Tahoe Resources Inc. (TSX:THO) says progress on its Escobal project in Guatemala has been “very encouraging” and its expects the silver mine to begin production within two years.
“The operating mine plan calls for 317 million silver ounces to be mined over 18 years and commercial production is planned for early 2014,” president CEO Kevin McArthur said Friday in remarks accompanying Tahoe’s financial results.
The company said it remains on-budget with its original capital estimate of $ 326.6 million.
“The project is fully financed and we hold a significant cash reserve should we encounter unanticipated startup issues,” McArthur said, noting the company had cash and equivalents at year-end of $ 349.8 million.
The company, which did not report any revenues, posted a full-year 2011 net loss of $ 69.2 million, equivalent to 48 cents per share.
McArthur said the Escobal project has seen impressive exploration results over the last year, indicating the potential for future mine expansion.
“In the second quarter of this year, we expect to update the mineral resource and to develop a plan to increase future throughput from the currently planned 3,500 tonnes per day to 5,000 tpd,” adding that the expansion plan would be financed with internal cash flow and completed within five years of mine start-up.
Local news from metronews.ca/vancouver
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