Tahoe Resources announces first concentrate shipment

theflyonthewall.com

Tahoe Resources announced that it has commenced shipping silver-bearing metals concentrates to smelters from its 100 percent owned Escobal mine in Guatemala. The first container of bagged concentrate was placed on a ship on October 15. Initial mill commissioning began in September. Tahoe expects to ramp up production to 3500 tonnes per day by year-end and to be in full production by early 2014. The company is currently developing the framework to determine when full production is achieved. As of the end of the third quarter, engineering, procurement and construction of the Escobal project was 99% complete and the underground mine was ready to produce at the rate of 3500 tpd. Cash and cash equivalents on September 30 stood at $39.2M, which the company estimates to be adequate to carry the mine through to production. Tahoe has reached agreement on commercial terms with several smelters, all of which are interested in long-term contracts. Terms are confidential at this time, but they are consistent with those indicated in the May 2012 Preliminary Economic Assessment analysis. It is still too early to judge metallurgical response during this trial period, and an update will be provided once the plant reaches its full throughput rate. The project remains on schedule and budget.

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