MINING IN MEXICO — Mexican silver production projected to

Mexico is projected to produce 65 million oz. silver in 1994.

The Silver Institute of Washington D.C., in its World Silver Survey 1994, says mine production in the country fell to 61 million oz. in 1993, down from 65 million oz. in 1992, mainly because of the closure of the Real de Angeles mine. The reopening of that mine late last year will give total silver output a boost in 1994.

The share of primary silver has fallen in Mexico, reflecting the presence of high-grade, low-cost silver deposits. During the past seven years, the share of primary silver production in the country has dropped to 40% from 42%, or to 24.4 million oz. from 29.3 million oz.

Known world silver mine reserves are estimated to be about 9 billion oz., with Mexico holding some 13% of that total. The world reserve base of silver is estimated to be 13.5 billion oz. Most of these deposits are not primary silver orebodies, but silver and some other mineral formation. Mexico was the top producer of silver from mines in 1993, followed by the U.S. at 56 million oz. and Peru at 47 million oz. Silver output of the CIS was estimated to be 43.6 million oz. last year.