Tahoe Resources Achieves Commercial Production at Escobal

Tahoe Resources Inc. (TSX:THO,NYSE:TAHO) announced that after commencing operations at its Guatemala-based Escobal mine in September 2013, it has now achieved commercial production of 3,500 tonnes per day.

To date, its mill has put out 5,970 tonnes of silver-bearing concentrate with an estimated net value of about $54.3 million. Today’s press release notes that “[q]uality has been outstanding.”

The company’s commercial production criteria include:

1. Completion of the operational commissioning of each major mine and plant component.
2. The demonstrated ability of the Escobal mine to operate consistently and without significant interruption at a production rate exceeding 70 percent of design capacity.
3. Operating results have been sustainable and are improving over time.
4. Metal concentrates produced have consistently met minimum concentrate specifications.
5. The Company’s metal concentrate products have demonstrated strong customer demand.

Kevin McArthur, Tahoe’s president and CEO, commented:

Our Guatemalan team has done a terrific job in delivering this world-scale silver mine within four years of the company’s initial public offering. While we continue to optimize the mill, tailings filtration and paste backfill operations, this has been a remarkable start-up for a precious metals flotation plant over a very short time period.

I am also pleased to report that we have commenced paying Guatemalan income taxes and look forward to making our first agreed upon royalty payments in the near future. Escobal mine has been designed and constructed to the highest environmental and social responsibility standards. We are very gratified to be working with our Guatemalan partners to bring sustainable benefits to a broad region of southeastern Guatemala through the development of Escobal.

Click here to read the full Tahoe Resources Inc. (TSX:THO,NYSE:TAHO) press release.

Click here to read Silver Investing News’ July interview with Tahoe.