VANCOUVER, Oct. 12, 2016 /CNW/ - Silver Standard Resources
Inc. (NASDAQ: SSRI) (TSX: SSO) ("Silver Standard") provides its
third quarter 2016 operational results.
Operating Highlights:
- Demonstrated scale from three operations: Record
quarterly production of 112,559 gold equivalent ounces.
- Strong gold production at the Seabee Gold
Operation: Produced 20,142 ounces of gold in the third
quarter, positioning the mine to meet the upper end of production
guidance.
- Commenced Operational Excellence program at Seabee:
Milled 900 tonnes per day during the third quarter, including a
successful trial of approximately 1,000 tonnes per day in
August 2016.
- Record quarterly silver production at Pirquitas:
Produced 3.0 million ounces of silver, 21% higher than the second
quarter of 2016, as we milled more ore tonnes and achieved higher
silver mill feed grade and recovery, on track to meet the upper end
of production guidance.
- Strong operating fundamentals at Pirquitas: Achieved
record quarterly milling rate of 4,946 tonnes per day in the third
quarter, including over 5,200 tonnes per day in August 2016.
- Gold production on track at Marigold: Produced
47,456 ounces of gold during the third quarter of 2016, with
expected strong fourth quarter production results, on track to meet
guidance.
- Increased total material mined at Marigold: Mined 19.6
million tonnes during the quarter reflecting increased haul truck
capacity.
Paul Benson, President and CEO
said, "This was a strong quarter with a number of production
records. Our three mines delivered impressive operating results and
record quarterly gold equivalent production, reflecting the
addition of a full quarter gold production from Seabee and record
silver production at Pirquitas with another solid quarter from
Marigold. Pleasingly, we were able to start our Operational
Excellence program at Seabee and saw some immediate results. With
Seabee integrated into Silver Standard, our portfolio is showing
our strength as a high-quality intermediate producer with scale and
margin. We continue to focus on creating shareholder value through
operational excellence, exploration for mine life extension and
disciplined growth."
Marigold mine, U.S.
|
|
Q3
2016
|
Q2
2016
|
% Change
1
|
Total material
mined
|
kt
|
19,558
|
18,685
|
4.7%
|
Waste
removed
|
kt
|
14,741
|
12,005
|
22.8%
|
Ore to leach
pad
|
kt
|
4,817
|
6,680
|
(27.9%)
|
Strip
ratio
|
w/o
|
3.1
|
1.8
|
72.2%
|
Gold grade to leach
pad
|
g/t
|
0.42
|
0.44
|
(4.5%)
|
Gold
recovery
|
%
|
71%
|
71%
|
0.0%
|
Gold
produced
|
oz
|
47,456
|
47,195
|
0.6%
|
Gold sold
|
oz
|
47,278
|
47,124
|
0.3%
|
1.
|
Percent changes
are calculated using rounded numbers presented in the
table.
|
The Marigold mine produced 47,456 ounces of gold in the third
quarter of 2016, in line with our second quarter gold production
and on target to meet previously increased annual guidance. The
construction of a new leach pad was completed on schedule and under
budget in the latter half of the third quarter. The additional
leach pad capacity and higher amount of ore tonnes stacked earlier
in the year are expected to result in a strong fourth quarter gold
production. We recognized sales of 47,278 ounces of gold in the
third quarter of 2016.
A total of 19.6 million tonnes was mined during the quarter,
five per cent higher than the second quarter of 2016, due to
increased hauling capacity added to the fleet earlier in the year.
Approximately 4.8 million tonnes of ore were delivered to the leach
pads at a gold grade of 0.42 g/t, containing approximately 47,000
recoverable ounces of gold stacked during the quarter. The strip
ratio increased to 3.1:1 in the third quarter as we began stripping
of the next Mackay pit phase. Gold recovery was 71% in the third
quarter.
Seabee Gold operation, Canada
|
|
Q3
2016
|
Q2 2016
1
|
Period from
Acquisition to
June 30, 2016 2
|
% Change
3
|
Total ore
milled
|
t
|
82,756
|
71,218
|
18,856
|
16.2%
|
Ore milled per
day
|
t/day
|
900
|
783
|
629
|
14.9%
|
Gold mill feed
grade
|
g/t
|
7.40
|
7.97
|
7.79
|
(7.2%)
|
Gold
recovery
|
%
|
96.5%
|
96.8%
|
96.6%
|
(0.3%)
|
Gold
produced
|
oz
|
20,142
|
17,524
|
6,721
|
14.9%
|
Gold sold
|
oz
|
21,911
|
16,305
|
11,306
|
34.4%
|
1.
|
The data presented
in this column is for the period from April 1, 2016 to June 30,
2016 and includes operating results for the Seabee Gold Operation
for the period from April 1 to May 30, 2016 prior to our
acquisition.
|
2.
|
The data presented
in this column is for the period from and after May 31, 2016, the
effective date of our acquisition of Claude Resources Inc. ("Claude
Resources"), to and including June 30, 2016.
|
3.
|
Percent changes
are for the three-month periods ending June 30, 2016 and September
30, 2016. Percent changes are calculated using rounded numbers
presented for Q2 2016 and Q3 2016 in the table.
|
The Seabee Gold Operation consists of the Seabee and Santoy
underground mines, both of which feed a single processing facility.
The operation produced 20,142 ounces of gold during the quarter
that included a three-day, unplanned power outage. The Seabee Gold
Operation is on track to meet the upper end of annual production
guidance as disclosed by Claude Resources in its news release dated
May 5, 2016. Gold sales were 21,911
ounces in the third quarter of 2016.
As part of our initial Operational Excellence plan for the
Seabee Gold Operation, we successfully tested higher mill
throughput during the month of August. The mill processed ore at or
above 1,000 tonnes per day, with an average of 998 tonnes per day
for the month of August. We achieved this with minor modifications
to the processing facility, while maintaining gold recovery. As a
result, we were able to increase throughput in the third quarter by
15% to 900 tonnes per day, compared to the second quarter of 2016.
We are reviewing the long term mine plan to determine the
feasibility of higher, sustainable throughput rates.
A total of 82,756 tonnes of ore were milled at an average gold
grade of 7.40 g/t and gold recovery of 96.5%.
Pirquitas mine, Argentina
|
|
Q3
2016
|
Q2
2016
|
% Change
1
|
Total material
mined
|
kt
|
2,385
|
2,543
|
(6.2%)
|
Waste
removed
|
kt
|
1,584
|
1,814
|
(12.7%)
|
Ore mined
|
kt
|
801
|
729
|
9.9%
|
Strip
ratio
|
w/o
|
2.0
|
2.5
|
(20.0%)
|
Silver mined
grade
|
g/t
|
190
|
189
|
0.5%
|
Ore milled
|
kt
|
455
|
425
|
7.1%
|
Silver mill feed
grade
|
g/t
|
264
|
238
|
10.9%
|
Silver
recovery
|
%
|
79.0%
|
77.6%
|
1.8%
|
Silver
produced
|
'000 oz
|
3,047
|
2,526
|
20.6%
|
Silver
sold
|
'000 oz
|
2,751
|
2,594
|
6.1%
|
1.
|
Percent changes are
calculated using rounded numbers presented in the table.
|
The Pirquitas mine produced 3.0 million ounces of silver during
the third quarter of 2016, a quarterly record for the mine, which
is well-positioned to meet the upper end of production guidance.
Higher silver production is a result of more ore tonnes milled,
higher silver mill feed grade and higher silver recovery. We
recognized sales of 2.8 million ounces of silver in the third
quarter of 2016.
Ore was milled at an average rate of 4,946 tonnes per day in the
third quarter. During August 2016,
the mill operated at an average rate of over 5,200 tonnes per day,
a record for the mill since it began operating, a result of one of
our ongoing Operational Excellence programs initiated in the fourth
quarter of 2015. Ore milled contained an average silver grade of
264 g/t, 11% higher than the 238 g/t reported in the second
quarter. We continued to encounter additional tonnes of higher
grade ore, relative to the production model, in the lower benches
of the San Miguel open pit. Detailed planning and consultation for
the cessation of open pit mining in early 2017 is well underway.
Thereafter medium and low grade stockpile material will be
processed through the plant in 2017.
Qualified Persons
The scientific and technical data contained in this news release
relating to the Marigold mine has been reviewed and approved by
Thomas Rice, SME Registered Member,
a Qualified Person under National Instrument 43-101 – Standards
of Disclosure for Mineral Projects ("NI 43-101") and our
Technical Services Manager at the Marigold mine. The scientific and
technical data contained in this news release relating to the
Seabee Gold Operation has been reviewed and approved by
Gordon Reed, P.Eng., a Qualified
Person under NI 43-101 and General Manager at the Seabee Gold
Operation. The scientific and technical data contained in this news
release relating to the Pirquitas mine has been reviewed and
approved by Bruce Butcher, P.Eng., a
Qualified Person under NI 43-101 and our Director, Mine Planning.
About Silver Standard
Silver Standard is a Canadian-based precious metals producer
with three wholly-owned and operated mines, including the Marigold
gold mine in Nevada, U.S., the
Seabee Gold Operation in Saskatchewan,
Canada and the Pirquitas silver mine in Jujuy Province,
Argentina. We also have two
feasibility stage projects and an extensive portfolio of
exploration properties throughout North and South America. We are committed to delivering
safe production through relentless emphasis on Operational
Excellence. We are also focused on growing production and Mineral
Reserves through the exploration and acquisition of assets for
accretive growth, while maintaining financial strength.
For further information contact:
W. John DeCooman, Jr.
Vice President, Business Development and Strategy
Silver Standard Resources Inc.
Vancouver, BC
N.A. toll-free: +1 (888) 338-0046
All others: +1 (604) 689-3846
E-Mail: invest@silverstandard.com
To receive Silver Standard's news releases by e-mail, please
register using the Silver Standard website at
www.silverstandard.com.
Cautionary Note Regarding Forward-Looking
Statements:
This news release contains forward-looking information within
the meaning of Canadian securities laws and forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 (collectively, "forward-looking
statements"). All statements, other than statements of historical
fact, are forward-looking statements.
Generally, forward-looking statements can be identified by
the use of words or phrases such as "expects," "anticipates,"
"plans," "projects," "estimates," "assumes," "intends," "strategy,"
"goals," "objectives," "potential," or variations thereof, or
stating that certain actions, events or results "may," "could,"
"would," "might" or "will" be taken, occur or be achieved, or the
negative of any of these terms or similar expressions. The
forward-looking statements in this news release relate to, among
other things: future production of gold, silver and other metals;
future costs of inventory, and cash costs and total costs per
payable ounce of gold, silver and other metals sold; the prices of
gold, silver and other metals; the effects of laws, regulations and
government policies affecting our operations or potential future
operations; future successful development of our projects; the
sufficiency of our current working capital, anticipated operating
cash flow or our ability to raise necessary funds; estimated
production rates for gold, silver and other metals produced by us;
timing of production and the cash costs and total costs of
production at the Marigold mine, the Seabee Gold Operation and the
Pirquitas mine; the estimated cost of sustaining capital; ongoing
or future development plans and capital replacement, improvement or
remediation programs; the estimates of expected or anticipated
economic returns from our mining projects, including future sales
of metals, concentrate or other products produced by us; and our
plans and expectations for our properties and operations.
These forward-looking statements are subject to a variety of
known and unknown risks, uncertainties and other factors
that could cause actual events or results to differ from those
expressed or implied, including, without limitation, the following:
uncertainty of production, development plans and cost estimates for
the Marigold mine, the Seabee Gold Operation, the Pirquitas mine
and our projects; our ability to replace Mineral Reserves; subject
to exercising our election to proceed, our ability to complete and
successfully integrate Golden Arrow Resources Corporation's
Chinchillas project, on a joint venture basis, into our current
operations; commodity price fluctuations; political or economic
instability and unexpected regulatory changes; currency
fluctuations; the possibility of future losses; general economic
conditions; fully realizing the value of our shareholdings in
Pretium Resources Inc. and our other marketable securities, due to
changes in price, liquidity or disposal cost of such marketable
securities; potential export duty and related interest on past
production and sales of silver concentrate from the Pirquitas mine;
counterparty and market risks related to the sale of our
concentrate and metals; uncertainty in the accuracy of Mineral
Reserves and Mineral Resources estimates and in our ability to
extract mineralization profitably; differences in U.S. and Canadian
practices for reporting Mineral Reserves and Mineral Resources;
lack of suitable infrastructure or damage to existing
infrastructure; future development risks, including start-up delays
and cost overruns; our ability to obtain adequate financing for
further exploration and development programs and opportunities;
uncertainty in acquiring additional commercially mineable mineral
rights; delays in obtaining or failure to obtain governmental
permits, or non-compliance with our permits; our ability to attract
and retain qualified personnel and management; potential labour
unrest, including labour actions by our unionized employees at the
Pirquitas mine; the impact of governmental regulations, including
health, safety and environmental regulations, including increased
costs and restrictions on operations due to compliance with such
regulations; reclamation and closure requirements for our mineral
properties; social and economic changes following closure of a
mine, including the expected closure of the Pirquitas mine in late
2016, may lead to adverse impacts and unrest; unpredictable risks
and hazards related to the development and operation of a mine or
mineral property that are beyond our control; indigenous peoples'
title claims and rights to consultation and accommodation may
affect our existing operations as well as development projects and
future acquisitions; assessments by taxation authorities in
multiple jurisdictions; recoverability of value added tax and
changes to the collection process in Argentina; claims and legal proceedings,
including adverse rulings in litigation against us and/or our
directors or officers; compliance with anti-corruption laws and
internal controls, and increased regulatory compliance costs;
complying with emerging climate change regulations and the impact
of climate change; uncertainties related to title to our mineral
properties and the ability to obtain surface rights; the
sufficiency of our insurance coverage; civil disobedience in the
countries where our mineral properties are located; operational
safety and security risks; actions required to be taken by us under
human rights law; competition in the mining industry for mineral
properties; shortage or poor quality of equipment or supplies; an
event of default under our convertible notes may significantly
reduce our liquidity and adversely affect our business; failure to
meet covenants under our senior secured revolving credit facility;
conflicts of interest that could arise from certain of our
directors' involvement with other natural resource companies;
information systems security threats; and those other various risks
and uncertainties identified under the heading "Risk Factors" in
our most recent Annual Information Form filed with the Canadian
securities regulatory authorities and included in our most recent
Annual Report on Form 40-F filed with the U.S. Securities
and Exchange Commission ("SEC").
This list is not exhaustive of the factors that may affect
any of our forward-looking statements. Our forward-looking
statements are based on what our management considers to be
reasonable assumptions, beliefs, expectations and opinions based on
the information currently available to it. Assumptions have been
made regarding, among other things, our ability to carry on our
exploration and development activities, our ability to meet our
obligations under our property agreements, the timing and results
of drilling programs, the discovery of Mineral Resources and
Mineral Reserves on our mineral properties, the timely receipt of
required approvals and permits, including those approvals and
permits required for successful project permitting, construction
and operation of our projects, the price of the minerals we
produce, the costs of operating and exploration expenditures, our
ability to operate in a safe, efficient and effective manner, our
ability to obtain financing as and when required and on reasonable
terms and our ability to continue operating the Marigold mine, the
Seabee Gold Operation and the Pirquitas mine. You are cautioned
that the foregoing list is not exhaustive of all factors and
assumptions which may have been used. We cannot assure you that
actual events, performance or results will be consistent with these
forward-looking statements, and management's assumptions may prove
to be incorrect. Our forward-looking statements reflect current
expectations regarding future events and operating performance and
speak only as of the date hereof and we do not assume any
obligation to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change other
than as required by applicable law. For the reasons set forth
above, you should not place undue reliance on forward-looking
statements.
Cautionary Note to U.S. Investors
This news release includes Mineral Reserves and Mineral
Resources classification terms that comply with reporting standards
in Canada and the Mineral Reserves
and the Mineral Resources estimates are made in accordance with NI
43-101. NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning
mineral projects. These standards differ significantly from the
requirements of the SEC set out in SEC Industry Guide 7.
Consequently, Mineral Reserves and Mineral Resources information
included in this news release is not comparable to similar
information that would generally be disclosed by domestic U.S.
reporting companies subject to the reporting and disclosure
requirements of the SEC. Under SEC standards, mineralization may
not be classified as a "reserve" unless the determination has been
made that the mineralization could be economically produced or
extracted at the time the reserve determination is made. Moreover,
the requirements of NI 43-101 for identification of "reserves" are
also not the same as those of the SEC, and reserves reported by us
in compliance with NI 43-101 may not qualify as "reserves" under
SEC standards. Accordingly, information concerning mineral deposits
set forth herein may not be comparable with information made public
by companies that report in accordance with U.S. standards.
Cautionary Note Regarding Non-GAAP Measures
This news release includes certain terms or performance
measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards ("IFRS"),
including realized metal prices. We believe that, in addition to
conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate our performance. The
data presented is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. These
non-GAAP measures should be read in conjunction with our
consolidated financial statements.
SOURCE Silver Standard Resources Inc.