Silver X Mining Corp (TSX-V:AGX, OTC:WRPSF) said silver production at its wholly owned Nueva Recuperada project in Peru remained steady during the second quarter of 2023.
During the quarter, it reported total throughput of 35,392 tonnes, compared to 20,887 in the year-ago quarter.
It processed a total of 296,493 silver equivalent ounces during 2Q, 35% more than 219,488 silver equivalent ounces in the same period last year.
Metal production was 248,42 silver equivalent ounces with an average head grade of 269 grams per ton (g/t) silver equivalent ounces, compared to 156,501 silver equivalent ounces with an average head grade of 310 g/t silver equivalent ounces in 2Q 2022.
"Silver X keeps on making progress with our Nueva Recuperada project,” Silver X CEO Jose Garcia said in a statement.
While Garcia noted that the firm saw an "unexpected drop" in grades in some mineralized areas, which drove the metal production down, project development remained on track with 2,133 meters of underground development during the quarter.
Silver X also announced that it has decided to place its operations at the project on hold for an estimated period of 30 to 45 days to implement a strategic operational reset.
The goals of this reset are to increase metal throughput by 50% with a 20% cost reduction, accelerate its in-fill drilling program, reduce its headcount, rationalize its operations in collaboration with its main mine contractor, and widely implement its sublevel stoping method and mill maintenance program.
Further, the company aims to negotiate the extension of its social agreement for a minimum of 10 additional years.
“We are currently in negotiations to extend our social agreement for a minimum of 10 years, which would represent a significant endorsement to the project,” CEO Garcia said in a statement.
“Silver X remains fully committed to the Huachocolpa community and our vision of making a positive impact in its history. This pause in operations presents an opportunity for us to finalize a mutually beneficial agreement in a spirit of collaboration and harmony."
Silver X is a rapidly expanding silver developer and producer. The company owns the 20,000-hectare-plus Nueva Recuperada Silver District in Central Peru and produces silver, gold, lead, and zinc from the district's Tangana Mining Unit.
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