Hochschild Mining is on track to hit its 37 million silver equivalent ounce target for the year following record production levels in the third quarter.
The company has reported attributable production of 10.3 million silver equivalent ounces (139,388 gold equivalent ounces) in the quarter with Pallancata continuing to deliver tonnage and grades above expectations whilst Inmaculada recorded its second strongest quarter to date.
It said overall year-to-date production was a record 28.2 million silver equivalent ounces (381,596 gold equivalent ounces), which placed the company firmly on course to reach its 37 million ounce target for the year.
Chief executive Ignacio Bustamante said: 'Hochschild achieved record production levels in Q3 2017 driven by a strong performance from Inmaculada and we are firmly on track to hit our 37 million silver equivalent ounce target for the year.
'Costs remain under control and we can look forward to our financial position improving in the near future with good cashflow generation and a planned debt re-financing in the first quarter of next year.
'The Pablo permitting process continues as expected with no major issues encountered so far. We are currently in the final stages and we expect to receive the environmental permit by the end of the month.
'We are now in the middle of our brownfield exploration campaign and have seen some encouraging results from Arcata, San Jose and also at Inmaculada where underground drilling has already revealed a number of new veins close to the original Angela vein.
'Furthermore, with the permit recently received from the Peruvian government, we can now begin the surface drilling campaign at the deposit.'