Silver Standard says Pirquitas mill shut down due to a gearbox failure

VANCOUVER – Silver Standard Resources Inc. (TSX:SSO) said Tuesday its revising its estimates after the Pirquitas mill in Argentina was shut down due to gearbox failure.

The Vancouver-based miner said silver guidance is being reduced to 7.3 million to 7.6 million ounces for 2011.

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In June, Silver Standard estimated silver production of 8.5 million ounces for the year.

The Pirquitas mill closed on Saturday, and the company said the process plant is expected to resume operations sometime this week at reduced levels.

“We are refurbishing the gearbox now and in November will take delivery of a new gearbox providing full redundancy, allowing us to continually produce between 8 to 10 million ounces of silver annually,” said president and CEO John Smith in a release.

Meanwhile, mine operations are unaffected by the shut down, the company said.