VANCOUVER, May 31, 2017 /PRNewswire/ - Silver Standard
Resources Inc. (NASDAQ: SSRI) (TSX: SSO) ("Silver Standard")
announces that the transaction to form a joint venture with Golden
Arrow Resources Corporation (TSX-V: GRG) ("Golden Arrow") for the
development of the Chinchillas project ("Chinchillas" or the
"project") closed today. The joint venture, named Puna Operations
Inc., is comprised of Silver Standard's Pirquitas property and
Golden Arrow's Chinchillas property
and is owned on a 75%/25% basis by each company, respectively.
Silver Standard is the joint venture operator and has made an
option exercise payment of $13.0 million to Golden Arrow. This transaction was previously
announced in Silver Standard's news release dated March 31, 2017.
Paul Benson, President and CEO
said, "Forming the joint venture is another important step toward
extending the life of the Pirquitas operation. By leveraging the
assets of the two companies, the Chinchillas pre-feasibility study
outlines a project with a short pay-back period for a modest
capital investment. We have also begun to evaluate the potential
for a small tonnage Pirquitas underground operation to provide an
additional, high grade ore stream to the Pirquitas
plant. Final permitting for Chinchillas is expected shortly,
which will enable site development to commence. In addition to
extending the life of Pirquitas and maximizing the value of our
investment, the project will benefit the people and governments of
Argentina through job creation,
increased tax base and export revenues. Silver Standard has a solid
foundation with three strong operations generating cash flow and
each with growth potential."
Chinchillas Pre-Feasibility Study Highlights
(All
financial results are in U.S. dollars and all technical data are
presented on a 100% project basis with an effective date of
December 31, 2016 unless otherwise
noted)
- Average annual silver equivalent production of 8.4 million
ounces over an eight-year mine life at a 4,000 tonne per day plant
throughput.
- Robust operating margins based on cash costs of $7.40 per payable ounce of silver sold over the
life of mine.
- Post-tax net present value of $178
million using a 5% discount rate and metal prices of
$19.50 per ounce silver, $0.95 per pound lead and $1.00 per pound zinc.
- Attractive post-tax internal rate of return of 29%.
- Near-term production based on construction beginning in the
third quarter of 2017, subject to permitting, and ore delivery to
the Pirquitas mill in the second half of 2018.
- Low capital intensity based on initial capital expenditures,
including owner's costs and contingency, estimated to be
$81 million.
- Mineral Reserves of 11.7 million tonnes containing 58 million
ounces of silver at a grade of 154 g/t, 310 million pounds of lead
at a grade of 1.20% and 127 million pounds of zinc at a grade of
0.49%.
- Measured and Indicated Mineral Resources (inclusive of Mineral
Reserves) of 29.3 million tonnes containing 96 million ounces of
silver at a grade of 101 g/t, 581 million pounds of lead at a grade
of 0.90% and 386 million pounds of zinc at a grade of 0.60%.
- Capital cost estimates assume utilizing certain property, plant
and equipment from the Pirquitas property. All costs incurred prior
to the declaration of commercial production are considered capital
costs.
Chinchillas Project Overview
The Chinchillas project is a silver-lead-zinc deposit, located
in the Puna region of northwestern Argentina, in Jujuy Province. Chinchillas is
approximately 42 kilometers by road from the Pirquitas property
owned by Silver Standard and 280 kilometers from the provincial
capital of San Salvador de Jujuy.
The project is composed of three contiguous claims, totaling 2,043
hectares. Chinchillas is accessed by paved road to the town of Abra
Pampa via National Route No. 9 and an additional 66 kilometers west
across public gravel roads, through the village of Santo Domingo, with similar road conditions
presently utilized to service the Pirquitas property. Santo Domingo is equipped with electricity,
natural gas, and water services.
Mineral Resources Estimate
This Mineral Resources estimate is based on all available data
for the Chinchillas deposit as at October 2,
2016.
Table 1: Chinchillas Mineral Resources Estimate (as at
October 2, 2016)
Category
|
Tonnes
|
AgEq
|
Ag
|
Pb
|
Zn
|
AgEq
|
Ag
|
Pb
|
Zn
|
(Mt)
|
(g/t)
|
(g/t)
|
(%)
|
(%)
|
(Moz)
|
(Moz)
|
(Mlb)
|
(Mlb)
|
Measured
|
3.1
|
160
|
128
|
0.60
|
0.41
|
16
|
13
|
41
|
28
|
Indicated
|
26.2
|
148
|
98
|
0.94
|
0.62
|
124
|
83
|
540
|
358
|
Total
(M+I)
|
29.3
|
149
|
101
|
0.90
|
0.60
|
140
|
96
|
581
|
386
|
Inferred
|
20.9
|
94
|
50
|
0.54
|
0.81
|
63
|
34
|
250
|
374
|
|
Notes:
|
1.
|
Mineral Resources
estimate was prepared in accordance with the Canadian Institute of
Mining, Metallurgy and Petroleum Counsel – Definitions adopted by
the CIM Counsel on May 10, 2014 (the "CIM Standards") and reported
in accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101") under the direction
of Robert Sim, P.Geo, SIM Geological Inc., a qualified
person.
|
2.
|
Mineral Resources
estimate has been generated from drill hole sample assay results
and the interpretation of a geologic model relating to the spatial
distribution of silver, lead and zinc. Interpolation
characteristics were defined based on the geology, drill hole
spacing, and geostatistical analysis of the data. Grade estimates
using ordinary kriging are made into model blocks measuring 8 x 8 x
5 metres (LxWxH). Mineral Resources were classified according to
their proximity to sample data locations.
|
3.
|
Mineral Resources are
contained within a pit shell generated using a silver equivalent
grade derived from the following formula: AgEq = Ag g/t + (Pb% ∗
30.49) + (Zn% * 33.54). Mineral Resources estimate is based on
metal price assumptions of $22.50/oz silver, $1.00/lb lead and
$1.10/lb zinc.
|
4.
|
The base case cut-off
grade, which reflects the transport to and processing of ore at the
Pirquitas property, is estimated to be 60 g/t AgEq based on
projected operating costs and metal prices listed above.
|
5.
|
Metallurgical
recoveries, used in the generation of the pit shell, are assumed to
be 85% silver, 93% lead and 80% for zinc.
|
6.
|
Mineral Resources are
reported inclusive of Mineral Reserves. Mineral Resources that are
not Mineral Reserves do not have demonstrated economic
viability.
|
7.
|
The quantity and
grade of reported Inferred Mineral Resources are uncertain in
nature and there has been insufficient exploration to classify
these Inferred Mineral Resources as Indicated or Measured Mineral
Resources. We intend to conduct further exploration to upgrade the
Inferred Mineral Resources; however, due to the uncertainty that
may be attached to Inferred Mineral Resources, it cannot be assumed
that all or any part of an Inferred Mineral Resource will be
upgraded to an Indicated or Measured Mineral Resource as a result
of continued exploration.
|
8.
|
Figures may not total
exactly due to rounding. All ounces reported represent troy ounces,
and "g/t" represents grams per tonne.
|
Mineral Reserves Estimate
The Mineral Reserves estimate herein is based on all available
data for the Chinchillas deposit as at December 31, 2016.
Table 2: Chinchillas Mineral Reserves Estimate (as at
December 31, 2016)
Category
|
Tonnes
|
AgEq
|
Ag
|
Pb
|
Zn
|
AgEq
|
Ag
|
Pb
|
Zn
|
(Mt)
|
(g/t)
|
(g/t)
|
(%)
|
(%)
|
(Moz)
|
(Moz)
|
(Mlb)
|
(Mlb)
|
Proven
|
1.6
|
221
|
180
|
0.75
|
0.42
|
11
|
9
|
27
|
15
|
Probable
|
10.1
|
217
|
150
|
1.27
|
0.50
|
70
|
48
|
282
|
111
|
Total
|
11.7
|
217
|
154
|
1.20
|
0.49
|
81
|
58
|
310
|
127
|
|
Notes:
|
1.
|
Mineral Reserves
estimate was prepared in accordance with the CIM Standards and
reported in accordance with NI 43-101 under the direction of Anoush
Ebrahimi, P.Eng, Ph.D., SRK Consulting (Canada) Inc., a qualified
person.
|
2.
|
Mineral Reserves
estimate is based on metal price assumptions of $18.00/oz silver,
$0.90/lb lead and $1.00/lb zinc.
|
3.
|
Mineral Reserves
estimate is reported at a cut-off grade of $32.56 per tonne net
smelter return.
|
4.
|
All figures include
dilution. The average mining dilution is calculated to be
11%.
|
5.
|
Ore loss is estimated
at 2%.
|
6.
|
There is an estimated
54.89 Mt of waste in the ultimate pit. The strip ratio is 4.69
(waste:ore)
|
7.
|
Processing recoveries
vary based on the feed grade. The average recovery is estimated to
be 85% for silver, 95% for lead and approximately 80% for
zinc.
|
8.
|
Metals shown in this
table are the contained metals in ore mined and
processed.
|
9.
|
Silver equivalent
grade has been calculated in block level using prices and
recoveries for each metal. Actual grades were used for mine design
and not equivalent grades. The recovery varies by grade in each
block so the silver equivalent formula changes for each block. The
following formulas have been used for the average grades in the
estimate for each of the Mineral Reserves categories and total
Mineral Reserves: Proven AgEq = Ag g/t + (Pb% ∗ 27.24) + (Zn% *
14.04); Probable AgEq = Ag g/t + (Pb% ∗ 49.73) + (Zn% * 17.23); and
Total AgEq = Ag g/t + (Pb% ∗ 46.61) + (Zn% * 16.81).
|
10.
|
This Mineral Reserves
estimate assumes that all required permits, as discussed under the
heading "Environment Studies, Permitting and Social or Community
Impact" of the technical report for the Chinchillas project, will
be obtained.
|
11.
|
Figures may not total
exactly due to rounding. All ounces reported represent troy ounces,
and "g/t" represents grams per tonne.
|
Mining and Processing
The pre-feasibility study evaluates the development and
construction of an open-pit mine and supporting infrastructure,
which will supply ore to the Pirquitas processing facilities over
an eight-year active mining period.
Chinchillas will be mined by conventional drill, blast, truck,
and loading open pit mining methods. A fleet of 35-tonne road haul
trucks will transport ore approximately 42 kilometers to the
Pirquitas processing facilities. Haul trucks, loading equipment and
drills at the Pirquitas property will be transferred to
Chinchillas, allowing the project to leverage existing equipment
and infrastructure for capital cost savings and a shorter time to
production.
The Pirquitas processing facility has been in continuous
operation since 2009. It will process ore from the Chinchillas
project using standard crush, grind and floatation at a rate of
4,000 tonnes per day. Minor modifications to the Pirquitas plant
are expected and the associated capital costs are included in the
capital cost estimate provided in Table 5. Over the life of mine,
the plant is expected to produce a silver/lead concentrate and a
zinc concentrate. The two concentrates will be shipped
internationally to smelters for processing. A tailings storage
facility will be located on the Pirquitas property and is included
in the capital cost estimate. Selected operating and production
statistics are presented in Table 3.
Table 3: Operating and Production Statistics
|
Units
|
Annual
Average
|
Total
|
Total Material
Mined
|
Mt
|
7.8
|
66.6
|
Waste
Removed
|
Mt
|
6.3
|
54.9
|
Ore to Process
Plant
|
Mt
|
1.5
|
11.7
|
Strip
Ratio
|
waste:ore
|
-
|
4.7
|
Processing
Rate
|
tpd
|
4,000
|
-
|
Mine Life
|
years
|
-
|
8
|
Silver
Grade
|
g/t
|
154
|
-
|
Silver
Recovery
|
%
|
88%
|
-
|
Lead Grade
|
%
|
1.20%
|
-
|
Lead
Recovery
|
%
|
95%
|
-
|
Zinc Grade
|
%
|
0.49%
|
-
|
Zinc
Recovery
|
%
|
85%
|
-
|
Silver
Production
|
Moz
|
6.1
|
51.0
|
Lead
Production
|
Mlb
|
35.0
|
295.8
|
Zinc
Production
|
Mlb
|
12.3
|
107.4
|
|
Notes:
|
1.
|
Processing rate
excludes the first two quarters of year one, when the processing
rate is lower due to ramp up. See Table 4 for additional
details.
|
2.
|
Annual averages are
straight average, calculated over the active mining period
commencing in year one (after pre-strip) and ending in year
eight.
|
3.
|
Total production is
calculated on a weighted average basis including eight years of
active mining and one year of processing activities in year nine,
with the exception of the strip ratio which is stated on a life of
mine basis including pre-stripping.
|
Table 4: Annual Operating Statistics
Year
|
-1
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
Ore Mined
|
7
|
1,177
|
1,367
|
1,456
|
1,607
|
1,461
|
1,405
|
1,509
|
1,721
|
-
|
Waste
Mined
|
4,332
|
9,238
|
9,146
|
8,959
|
8,068
|
8,335
|
3,507
|
1,797
|
1,505
|
-
|
Total Material Mined
(kt)
|
4,339
|
10,415
|
10,513
|
10,415
|
9,674
|
9,796
|
4,912
|
3,306
|
3,226
|
-
|
Strip Ratio
(Waste:Ore)
|
|
7.8x
|
6.7x
|
6.2x
|
5.0x
|
5.7x
|
2.5x
|
1.2x
|
0.9x
|
-
|
Silver head grade
(g/t)
|
|
125
|
183
|
169
|
156
|
164
|
166
|
159
|
137
|
94
|
Lead head grade
(%)
|
|
0.87%
|
0.94%
|
1.28%
|
1.24%
|
1.39%
|
1.41%
|
1.44%
|
1.15%
|
0.85%
|
Zinc head grade
(%)
|
|
0.68%
|
0.48%
|
0.53%
|
0.58%
|
0.52%
|
0.26%
|
0.27%
|
0.63%
|
0.53%
|
Tonnes milled
(tpd)
|
|
2,813
|
4,114
|
4,000
|
4,000
|
4,000
|
4,000
|
4,000
|
4,000
|
4,000
|
Tonnes milled
(kt)
|
|
985
|
1,440
|
1,400
|
1,400
|
1,400
|
1,400
|
1,400
|
1,400
|
886
|
Silver recovery
(%)
|
|
86%
|
90%
|
89%
|
88%
|
89%
|
89%
|
88%
|
87%
|
83%
|
Lead recovery
(%)
|
|
93%
|
94%
|
96%
|
96%
|
96%
|
96%
|
97%
|
95%
|
93%
|
Zinc recovery
(%)
|
|
85%
|
85%
|
85%
|
85%
|
85%
|
85%
|
85%
|
85%
|
85%
|
Silver production
(koz)
|
|
3,386
|
7,599
|
6,763
|
6,194
|
6,553
|
6,641
|
6,317
|
5,359
|
2,221
|
Lead production
(klbs)
|
|
17,501
|
28,137
|
38,047
|
36,610
|
41,249
|
41,872
|
43,033
|
33,865
|
15,503
|
Zinc production
(klbs)
|
|
12,567
|
12,888
|
13,968
|
15,168
|
13,573
|
6,758
|
6,967
|
16,689
|
8,844
|
Silver
equivalent
production
(koz)
|
|
4,883
|
9,630
|
9,333
|
8,756
|
9,259
|
9,027
|
8,771
|
7,865
|
3,430
|
|
Note: Figures may not total
exactly due to rounding. Silver equivalent figures are calculated
based on metal prices of $19.50/oz silver, $0.95/lb lead and
$1.00/lb zinc.
|
Capital Costs Summary
Capital cost estimates assume utilizing certain property, plant
and equipment from the Pirquitas property. All costs incurred prior
to the declaration of commercial production are considered capital
costs. Ore delivery to the Pirquitas mill is expected in the second
half of 2018. The total capital required to construct the
Chinchillas mine and associated infrastructure is $81 million. A summary of expected capital costs
is presented in Table 5.
Table 5: Summary of Capital Costs
Capital
Costs
|
Value
($M)
|
Site
Infrastructure
|
$10
|
Mining
Equipment
|
$12
|
Pre-stripping
Capital
|
$11
|
Plant and
Tailings
|
$16
|
Owner's
Costs
|
$10
|
Other
|
$5
|
Contingency
|
$16
|
Total
|
$81
|
|
Note: Figures may not total
exactly due to rounding.
|
Capital costs incurred after the start of commercial production
are considered sustaining capital costs. The sustaining capital,
excluding capitalized stripping, is expected to be $44 million, including a $9 million contingency, exclusive of closure
costs specific to the Pirquitas property. A summary of expected
sustaining capital costs is presented in Table 6.
Table 6: Summary of Sustaining Capital Costs
Sustaining Capital
Costs
|
Value
($M)
|
Mining
Equipment
|
$29
|
Other
|
$7
|
Contingency
|
$9
|
Total
|
$44
|
|
Note: Figures may not total
exactly due to rounding.
|
Capitalized stripping during the operating period of a three
phase open pit is estimated at $62
million.
Operating Costs Summary
Total operating costs are presented in Table 7. These costs were
developed based on actual operating experience and are adjusted
where appropriate to characteristics specific to the Chinchillas
project.
Table 7: Summary of Operating Costs
Operating
Costs
|
Units
|
Value
|
Mining
|
$/t mined
|
$2.88
|
$/t milled
|
$15.34
|
Processing
|
$/t milled
|
$14.72
|
General and
Administrative
|
$/t milled
|
$7.00
|
Ore Transport to
Plant
|
$/t milled
|
$7.86
|
Tailings
Management
|
$/t milled
|
$0.43
|
Total
|
$/t
milled
|
$45.34
|
Cash costs, which include cost of inventory net of capitalized
stripping, and treatment and refining costs, total $7.40 per payable ounce of silver sold net of
by-product revenues and estimated capitalized stripping over the
life of mine. All-in sustaining costs, which include sustaining
capital, capitalized stripping and reclamation, total $9.75 per payable ounce of silver sold net of
by-product revenues over the life of mine.
Financial Analysis
Chinchillas is expected to generate $178
million in post-tax NPV using a 5% discount rate over the
life of mine. Key financial estimates presented in Table 8 are
based on the key economic assumptions presented in Table 9. The
joint venture is also responsible for closure costs associated with
the Pirquitas property, but such costs are not included in this
financial analysis.
Argentine peso-denominated cost estimates have been converted
into U.S. dollar terms based on prevailing exchange rates in the
third quarter of 2016. Going forward, Argentine inflation rates in
excess of U.S. inflation rates are assumed to be offset by a
corresponding devaluation of the Argentine peso against the U.S.
dollar, resulting in no anticipated material changes to Argentine
peso-denominated costs in U.S. dollar terms.
Table 8: Key Financial Estimates
|
Units
|
Total
|
Net
Revenue
|
$M
|
$1,062
|
Mining
Costs
|
$M
|
($272)
|
Processing
Costs
|
$M
|
($177)
|
General
Administration Costs
|
$M
|
($82)
|
Royalties and
Other
|
$M
|
($37)
|
Operating Cash
Flow
|
$M
|
$495
|
Net VAT
|
$M
|
($10)
|
Puna
Credits
|
$M
|
$24
|
Stamp Duty
|
$M
|
($16)
|
Change in Net Working
Capital
|
$M
|
$0
|
Operating Cash
Flow
|
$M
|
$494
|
Development Initial
Capex
|
$M
|
($81)
|
Sustaining
Capex
|
$M
|
($44)
|
Reclamation and
Severance
|
$M
|
($17)
|
Pre-Tax Cash
Flow
|
$M
|
$351
|
Tax
|
$M
|
($84)
|
Post-tax Cash
Flow
|
$M
|
$267
|
Pre-Tax NPV
(5%)
|
$M
|
$239
|
Pre-Tax NPV
(10%)
|
$M
|
$162
|
Pre-Tax
IRR
|
%
|
35.2%
|
Post-Tax NPV
(5%)
|
$M
|
$178
|
Post-Tax NPV
(10%)
|
$M
|
$115
|
Post-Tax
IRR
|
%
|
29.1%
|
Payback
|
years
|
3.5
|
|
Note: Figures may not total
exactly due to rounding.
|
Table 9: Key Economic Assumptions
Assumption
|
Units
|
Value
|
Silver
Price
|
$/oz
|
$19.50
|
Lead Price
|
$/lb
|
$0.95
|
Zinc Price
|
$/lb
|
$1.00
|
Sensitivity Analysis
The Chinchillas project provides significant leverage to silver
and lead prices. Estimated NPV sensitivities for key operating and
economic metrics are presented in Tables 10 and 11.
Table 10: NPV Sensitivity Analysis: Lead and Silver
Price
Post-tax NPV (5%)
Sensitivities ($M)
|
|
Silver Price
($/oz)
|
$16.00
|
$18.00
|
$19.50
|
$22.00
|
$25.00
|
Lead
Price
($/lb)
|
|
$57
|
$119
|
$162
|
$229
|
$307
|
$0.95
|
$75
|
$136
|
$178
|
$244
|
$321
|
$1.05
|
$93
|
$152
|
$194
|
$259
|
$336
|
$1.15
|
$110
|
$169
|
$209
|
$274
|
$351
|
$1.25
|
$128
|
$185
|
$225
|
$289
|
$366
|
Table 11: NPV Sensitivity Analysis: Capital Expenditure and
Operating Costs
Post-tax NPV (5%)
Sensitivities ($M)
|
|
Capex (%
change)
|
-20%
|
-10%
|
0%
|
+10%
|
+20%
|
Opex
(%
change)
|
+20%
|
$170
|
$162
|
$155
|
$148
|
$140
|
+10%
|
$181
|
$174
|
$166
|
$159
|
$152
|
0%
|
$192
|
$185
|
$178
|
$170
|
$163
|
-10%
|
$203
|
$196
|
$189
|
$182
|
$174
|
-20%
|
$214
|
$207
|
$200
|
$193
|
$185
|
Opportunities
Several potential opportunities to improve the economics of the
Chinchillas project have been identified.
The Pirquitas mill has demonstrated operating throughput of up
to 5,000 tonnes per day. Opportunity exists to sustainably process
more than 4,000 tonnes per day, the rate utilized in the
pre-feasibility study. This would increase annual production levels
and potentially improve operating costs due to economies of
scale.
Further opportunity exists for Mineral Resource discovery and
conversion of Mineral Resources to Mineral Reserves. Mineral
Resources in excess of Mineral Reserves exist on the Chinchillas
property. Through additional drilling, higher metal prices or lower
costs, there may be an opportunity to convert Mineral Resources to
Mineral Reserves, thereby extending the operating life of the
Chinchillas project. Additionally, more detailed drill testing in
the areas surrounding and to the south-east of the Chinchillas
property may have potential to add further Mineral Resources at the
project.
Project Schedule
The permitting process for the Chinchillas project continues to
advance with positive support from the local communities and
government authorities. The Chinchillas Environmental and Social
Impact Assessment has been prepared and submitted to the Argentine
regulatory authorities, and is in the consultation process. The
process for the modification to the Pirquitas Environmental and
Social Impact Assessment to use the San Miguel open pit at the
Pirquitas property for tailings deposition of Chinchillas material
has begun and additional documents are being prepared for
submission to the regulatory authorities. Work with local
communities on social programs and understanding of the Chinchillas
project is advancing positively.
Subject to permitting, we have approved a development decision
on the project and expect construction at Chinchillas to begin
during the third quarter of 2017, with ore delivery to the
Pirquitas mill expected in the second half of 2018.
Qualified Persons
The scientific and technical information contained in this news
release pertaining to the Chinchillas project has been reviewed and
approved by the following qualified persons under NI 43-101:
- Anoush Ebrahimi, P.Eng, Ph.D.,
SRK Consulting (Canada) Inc.;
- Ken Kuchling, P. Eng., P&E
Mining Consultants Inc.; and
- Robert Sim, P.Geo, SIM
Geological Inc.
Technical Report
The technical report titled "NI 43-101 Technical Report
Pre-feasibility Study of the Chinchillas Silver-Lead-Zinc Project,
Jujuy Province, Argentina" dated
effective as of December 31, 2016 was
filed on May 15, 2017 by Golden Arrow and is now available on Silver
Standard's SEDAR profile at www.sedar.com. For further information
regarding the pre-feasibility study, readers are encouraged to
review the technical report.
About Silver Standard
Silver Standard is a Canadian-based precious metals producer
with three operations, including the Marigold gold mine in
Nevada, U.S., the Seabee Gold
Operation in Saskatchewan, Canada
and the 75% owned and operated Puna Operations joint venture 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") concerning the anticipated developments in our
operations in future periods, and other events or conditions that
may occur or exist in the future. 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: objectives, strategies, intentions, expectations,
production, capital and operating costs, capital and exploration
expenditure guidance, including the estimates in the
pre-feasibility study and the estimated economics of the
Chinchillas project; future financial and operating performance and
prospects for the Chinchillas project; the potential for a
Pirquitas underground operation to provide an additional, high
grade ore stream to the Pirquitas plant; anticipated production at
the Chinchillas project and processing facilities, including
construction beginning in the third quarter of 2017 and ore
delivery to the Pirquitas mill in the second half of 2018, and
events that may affect the joint venture's operations; expected
modifications to the Pirquitas plant and the expected production
resulting therefrom; anticipated mining and processing methods;
anticipated cash flows from the Chinchillas project and related
liquidity requirements; the anticipated effect of external factors
on revenue, such as commodity prices, estimation of Mineral
Reserves and Mineral Resources and the ability to discover new
Mineral Resources and to convert current Mineral Resources to
Mineral Reserves; mine life projections, recovery rate and
concentrate grade projections, reclamation costs, economic outlook,
government and environmental regulations of mining operations at
the Chinchillas project; expectations regarding the timing and
ability to obtain the necessary permits for the Chinchillas project
and commencement of operations; and anticipated mine plan for the
Chinchillas project.
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
Pirquitas mine and the Chinchillas project; our ability to replace
Mineral Reserves; our ability to successfully integrate an
announced acquisition; commodity price fluctuations; political or
economic instability and unexpected regulatory changes; currency
fluctuations; the possibility of future losses; general economic
conditions; 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; 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;
failure to effectively manage our tailings facilities; social and
economic changes following closure of a mine; 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; 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, including extreme weather conditions; 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 currently 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 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. In
addition, the SEC's disclosure standards normally do not permit the
inclusion of information concerning "Measured Mineral Resources,"
"Indicated Mineral Resources" or "Inferred Mineral Resources" or
other descriptions of the amount of mineralization in mineral
deposits that do not constitute "reserves" by U.S. standards in
documents filed with the SEC. U.S. investors should understand that
"Inferred Mineral Resources" have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. 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 cash costs and all-in sustaining costs per payable ounce
of precious metals sold. Non-GAAP financial measures do not have
any standardized meaning prescribed under IFRS and, therefore, they
may not be comparable to similar measures reported by other
companies. 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.
SOURCE Silver Standard Resources Inc.