Tahoe to expand silver mine in Guatemala
As the mine building progresses on schedule in Guatemala, Tahoe Resources has added fresh details to plans to expand what is prepared to be one of the world's top primary silver producing sites, Mineweb reported.
According to the news outlet, in a progress report on construction of the Escobal silver mine in Guatemala, the company outlined plans to expand production capacity beyond 3,500 tons per day or 19 million ounces of silver per year.
Kevin McArthur, the company's president and chief executive, said in a statement that expansion to 5,000 tons per day would be funded by cash flow that would arise from investments from Tahoe Resources.
"We have seen impressive exploration results over the last year, indicating the potential for future mine expansion," McArthur stated.
While the company has not publicly pinned down the exact amount by which silver production could grow once it is up and running at Escobal, if planned production goes from 3,500 tonnes per day to 5,000 tonnes per day then Tahoe's silver output might jump by as much as 8 million ounces silver to 27 million ounces per year, according to the news source.
"It is anticipated that the expansion plan would be financed with internal cash flow and completed within five years of mine start-up," McArthur said in the release.
According to the release, the company had committed more than $141 million toward the project as of December 31, and the original capital cost estimate of $326.6 million remains unchanged.