Silver Standard considering scaled-down Pitarrilla

Silver Standard is considering a scaled-down development at its suspended Pitarrilla silver project in Mexico.

The project, in Durango state, is one of the largest undeveloped silver deposits, containing nearly 700Moz of the metal, CEO Paul Benson told the Denver Gold Forum 2015.

The US$741mn project was shelved in 2014 due to falling metal prices and the introduction of Mexican mining taxes. Projects totaling more than US$1.5bn were suspended in Mexico last year.

But the company is considering the viability of a smaller mine development. "We are going back to evaluate whether there is an economic, smaller version focused on higher grade from underground, and we will continue that examination into the New Year," Benson told the event.

Pitarrilla was expected to produce 333Moz silver over 32 years, plus lead and zinc by-products, according to a 2012 feasibility study.

Silver Standard also has the Pirquitas mine in Argentina and Marigold in the US, and projects in Peru and Argentina.