VANCOUVER, April 11, 2017 /CNW/ - Silver Standard
Resources Inc. (NASDAQ: SSRI) (TSX: SSO) ("Silver Standard")
reports first quarter 2017 operating results at our three
mines.
First Quarter 2017 Operating Highlights
- Consistent production scale: Produced 97,851 gold
equivalent ounces from three operations in the first quarter of
2017.
- Gold production at Marigold to plan: Produced 55,215
ounces of gold during the first quarter of 2017.
- Robust gold production at Seabee: Achieved production of
21,023 ounces of gold in the first quarter of 2017 as higher grade
ore was sourced from the Santoy mine.
- Strong operating fundamentals at Pirquitas: The
operation concluded open pit mining in January 2017 and commenced stockpile processing,
taking quarterly production to 1.5 million ounces of silver. The
mill continued to operate at a rate of approximately 5,000 tonnes
per day, 25% above nominal throughput.
Paul Benson, President and CEO
said, "Our production of 97,851 gold equivalent ounces is a strong
start to the year, highlighted by Seabee continuing to demonstrate
a capability to produce above historical levels. The sustained
contribution from all three of our assets was solidified by our
recent announcement to exercise our option on the Chinchillas
project to extend the operating life of Pirquitas. This, combined
with our focus on safe production and operational excellence,
demonstrates the success of our strategy to create value through
internal and external opportunities."
Marigold mine, U.S.
|
|
Q1
2017
|
Q4
2016
|
% Change
1
|
Total material
mined
|
kt
|
16,736
|
19,559
|
(14.4%)
|
Waste
removed
|
kt
|
11,062
|
13,123
|
(15.7%)
|
Ore to leach
pad
|
kt
|
5,674
|
6,436
|
(11.8%)
|
Strip
ratio
|
w/o
|
1.95
|
2.04
|
(4.4%)
|
Gold grade to leach
pad
|
g/t
|
0.42
|
0.48
|
(12.5%)
|
Gold
recovery
|
%
|
74%
|
75%
|
(1.3%)
|
Gold
produced
|
oz
|
55,215
|
59,945
|
(7.9%)
|
Gold sold
|
oz
|
52,528
|
61,308
|
(14.3%)
|
Notes:
|
1. Percent changes are calculated
using rounded numbers presented in the table.
|
In the first quarter of 2017, the Marigold mine produced 55,215
ounces of gold, in line with plan. Gold sales totaled 52,528 ounces
for the quarter.
A total of 16.7 million tonnes were mined in the first quarter
of 2017, 14% less than the fourth quarter of 2016, primarily due to
weather-related impacts in January and February, which caused the
open pit to cease operations intermittently due to unsafe work
conditions. Additionally, the rope shovel was down for
planned maintenance for five days during the month of March.
Approximately 5.7 million tonnes of ore were delivered to the heap
leach pads at an average gold grade of 0.42 g/t. This compares to
6.4 million tonnes of ore delivered to the heap leach pads at a
gold grade of 0.48 g/t in the fourth quarter of 2016. Gold grade
mined in the first quarter was 13% lower than the fourth quarter
due to planned pit phase sequencing. The strip ratio declined to
1.95:1 in the quarter, a 4% reduction compared to the previous
quarter.
Seabee Gold Operation, Canada
|
|
Q1
2017
|
Q4
2016
|
% Change
1
|
Total ore
milled
|
t
|
72,394
|
84,526
|
(14.4%)
|
Ore milled per
day
|
t/day
|
804
|
919
|
(12.5%)
|
Gold mill feed
grade
|
g/t
|
9.22
|
7.40
|
24.6%
|
Gold
recovery
|
%
|
97.7%
|
97.0%
|
0.7%
|
Gold
produced
|
oz
|
21,023
|
19,711
|
6.7%
|
Gold sold
|
oz
|
22,411
|
17,229
|
30.1%
|
Notes:
|
1. Percent changes are calculated
using rounded numbers presented in the table.
|
In the first quarter of 2017, the Seabee Gold Operation produced
21,023 ounces of gold, a 7% increase from the 19,711 ounces of gold
produced during the fourth quarter of 2016, primarily due to higher
grade ore from the Santoy mine complex. Gold sales were 22,411
ounces for the quarter, including inventory carried over from the
fourth quarter of 2016.
A total of 72,394 tonnes of ore was milled at an average gold
grade of 9.22 g/t and recovery of 97.7% during the first quarter of
2017. This compares to a total of 84,526 tonnes of ore milled at an
average gold grade of 7.40 g/t and recovery of 97.0% in the fourth
quarter of 2016.
During the first quarter, the mill was maintained at a
throughput of 804 tonnes per day, lower than the previous quarter
as ore delivery constrained mill throughput due to ventilation
system limitations. Additional fans and electrical equipment were
delivered to the mine and are expected to be operational by
mid-year. The Santoy mine complex supplied 98% of ore milled in the
first quarter, predominantly from long hole stopes. We continue to
develop new mine plans to determine a higher, sustainable
production rate.
Pirquitas mine, Argentina
|
|
Q1
2017
|
Q4
2016
|
% Change
1
|
Total material
mined
|
kt
|
89
|
1,694
|
(94.7%)
|
Ore mined
|
kt
|
53
|
501
|
(89.4%)
|
Silver mined
grade
|
g/t
|
205
|
168
|
22.0%
|
Ore milled
|
kt
|
449
|
476
|
(5.7%)
|
Silver mill feed
grade
|
g/t
|
145
|
194
|
(25.3%)
|
Silver
recovery
|
%
|
72.6%
|
74.5%
|
(2.6%)
|
Silver
produced
|
koz
|
1,520
|
2,210
|
(31.2%)
|
Silver
sold
|
koz
|
1,443
|
2,633
|
(45.2%)
|
Notes:
|
1. Percent changes
are calculated using rounded numbers presented in the
table.
|
Mining from the San Miguel open pit ceased in January 2017 and medium grade stockpile material
is being processed through the plant. Lower grade stockpiles may be
processed in late 2017, and potentially in early 2018, once the
medium grade stockpiles have been consumed, depending on prevailing
economic conditions.
The operation produced a total of 1.5 million ounces of silver
from ore mined and stockpiles processed. Silver sales were 1.4
million ounces for the quarter.
Ore was milled at an average rate of 4,994 tonnes per day in the
fourth quarter, 25% above the mill's nominal throughput of 4,000
tonnes per day. Ore milled in the first quarter of 2017 contained
an average silver grade of 145 g/t, 25% lower than the 194 g/t
reported in the fourth quarter of 2016 as the majority of mill feed
was sourced from medium grade stockpile ore. The jig circuit is not
utilized to treat stockpile material. The average silver recovery
in the first quarter was 72.6%, lower than the 74.5% recovery in
the previous quarter, in line with reduced silver mill feed
grade.
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
Cameron Chapman, 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 a portfolio of exploration
properties in 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," "believes," 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; expected exploration and development
expenditures; the prices of gold, silver and other
metals; the timing of cessation of San Miguel open pit
mining activities and stockpile processing at the Pirquitas
mine; 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
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; our
ability to expand Mineral Resources and convert Mineral Resources
into Mineral Reserves; 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; our ability
to complete and successfully integrate Golden Arrow Resources
Corporation's ("Golden Arrow") Chinchillas project, on a joint
venture basis, into our current operations; ability to obtain
necessary permits for the Chinchillas project; ability to satisfy
closing conditions and successfully form the joint venture with
Golden Arrow; 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; 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 anticipated closure of the Pirquitas mine in
late 2017 or early 2018, 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 significant delays in 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; fully realizing our
interest in deferred consideration received in connection with
recent divestitures; 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; our ability to complete and successfully integrate an
announced acquisition; 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' and officers' involvement with other
natural resource companies; information systems security threats;
and those 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.
SOURCE Silver Standard Resources Inc.