Peruvian Hochschild Mining is eyeing acquisitions in Peru, Argentina and Mexico to expand production beyond its goal of 50Moz/y silver equivalent by 2011, company head of IR Wray Barber told BNamericas.

Hochschild has said it aims to increase production at its three mines in Peru – Selene, Arcata and Ares – and also bring three more projects – San José in Argentina, Pallancata in Peru and Mina Moris in Mexico – on stream in 2007.

The new production would raise output to 26Moz/y of silver this year from the 11.6Moz it reported producing in 2006. Hochschild also churned out 196,000oz of gold last year.

The 2011 goal takes into account the silver and gold output of the operations mentioned plus the San Felipe project in Mexico currently in the development stage, Barber said.

But Hochschild is looking to surpass that goal through acquisitions in the Americas, although it will avoid Venezuela and Bolivia for political reasons, she said.

The company would be interested in acquiring a producing mine, advanced projects due to come on stream in 1-2 years or even projects in very early stages, the executive added.
Greenfield exploration

Hochschild has budgeted US$35mn for explorations in 2007.

The company owns or has JVs on greenfield properties in Peru, Chile, Argentina and Mexico, Barber said.

Among those, Hochschild has signed an option deal to earn 51% of the Claudia and Santa Rita properties in Argentina by investing US$6mn and US$3mn respectively over four years.

Hochschild is also exploring the San Luis de Cordero property in Mexico and the Sierra de las Minas prospect in Argentina.