Silver Stream Projects
Silverstone has long-term agreements in place at three well-established, producing mines in Mexico, Canada and Portugal. Together, these mines have 129 million ounces of proven and probable reserves, 213 million ounces of measured and indicated resources (including the proven and probable reserves), and an additional 69 million ounces of inferred resources. In addition, Silverstone has the right to purchase 12.5% of the life of mine payable silver from the Loma de La Plata zone and the right of first offer with respect to the sale of any additional future silver production streams by Aquiline.
Cozamin The Cozamin mine is located within 4 km of Zacatecas City in the mineral-rich state of the same name. The Cozamin mine will be producing 3,000 tpd or approximately 1 million tpy by September 2008. The mine’s 2008 production of silver is forecast at 1.3 to 1.5 million ounces. Production costs are fixed at the lesser of US$4.00 per ounce or the spot price with an inflation component after three years over the next ten years; the length of Silverstone’s purchase agreement. Excellent possibilities exist for finding additional mineralization at the site.
Minto The Minto mine is a base metals mine (copper-gold-silver) located in the Yukon, Canada. The 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 silver equivalent ounces*. * Silver equivalent ounces are calculated by using a ratio of 1 ounces of gold is equivalent to 70 ounces of silver.
Kutcho Project Silverstone has the right of first refusal to purchase any gold and/or silver streams. The terms and conditions will be agreed upon mutual consent.
Neves-Corvo The Neves-Corvo mine is 220 km southeast of Lisbon in the Alentejo district of Portugal. The mine produces more than 500,000 ounces per year of payable silver, contained in copper concentrate, and has the potential to produce additional silver from its zinc processing circuit scheduled to start at the beginning of 2009 at the rate of 200,000 oz/year. Silverstone pays the lesser of US$3.90 per ounce and the spot price with an inflation adjustment in year four. Lundin announced an increase of zinc ore processing with an estimated increase in silver production from zinc ores to +1 million ounces commencing in late 2011 with no addition costs to Silverstone. Lundin through agressive exploration in 2007 increased contained silver in proven and probable reserves to 91.6 million ounces from 39.3 million ounces.
Aljustrel The Aljustrel mine is approximately 40 km northwest of Neves-Corvo. The mine is expected to produce 1.2 million ounces of silver in lead concentrate per year on an annualized basis. The production of 2008 is forecast at 250,000 ounces as the mine switches to the main silver rich ore body. In 2009, production is forecast at greater than 1 million ounces and averaging 1.2 million ounces thereafter. Production costs are fixed at the lesser of US$3.90 per ounce (an inflation adjustment commences in year four). Aljustrel’s estimated mine life exceeds ten years, and additional exploration of known orebodies is planned, with the goal of increasing mine life.
Loma de La Plata, Navidad Project
The initial Aquiline drill holes at Loma de La Plata were completed in May, 2007 and by the release of Aquiline’s resource update on November 15, 2007 the new high grade, near surface deposit had grown to contain 9.1 million tonnes at an average grade of 225 g/t silver and 0.09% lead or 66 million contained silver ounces in the Indicated category plus 17.3 million tonnes grading 159 g/t silver and 0.11% lead or 89 million contained silver ounces in Inferred resources (Snowden Mining Industry Consultants, 2007). The Loma resource is contained within the larger Navidad resource of 127.7 million Measured and Indicated tonnes grading 110 g/t silver and 1.06% lead (453 million oz Ag M+I ) and 49.0 million Inferred tonnes grading 97 g/t silver and 0.5% lead (153 million oz Ag I). Drilling is ongoing at Navidad with three rigs, two of which are focused on new discoveries and resource expansion. |