VANCOUVER, Sept. 7, 2017 /PRNewswire/ - SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") is pleased to report the
results of a Preliminary Economic Assessment ("PEA") for the Seabee
Gold Operation in Saskatchewan,
Canada prepared with SRK Consulting (Canada) Inc. The PEA evaluates the expansion
of the Seabee Gold Operation to a sustained mining and milling rate
of 1,050 tonnes per day for a seven-year period.
Highlights of the Seabee Gold Operation PEA:
(All
financial results are in U.S. dollars unless otherwise
noted)
- Near-term production growth: Estimated peak gold
production of 120,000 ounces in 2020 is 55% higher than 2016
output.
- Expands operating margins: Estimated LOM cash costs of
$548 per payable ounce of gold sold
due to higher sustained throughput and an average mill feed grade
of 8.51 g/t gold.
- Extends production profile to 2024: Estimated gold
production averages 100,000 ounces per year over the period from
2018 to 2023, a 29% increase from 2016 production.
- Improves processing plant performance: Estimated mill
production averages 1,050 tonnes per day beginning in 2019, a 21%
increase to 2016 throughput, with a projected 96.5% recovery.
- Low capital investment: Development near existing
infrastructure reduces projected total capex to $90 million, driving low AISC of $682 per payable ounce of gold sold.
Paul Benson, President and CEO
said, "We acquired Claude Resources because we recognized Santoy
was a high-quality orebody and we saw the potential for near-term
production growth and improved margins, which this expansion plan
confirms. At sub-$550 per ounce
cash costs and peak annual gold production of over 120,000 ounces
along with a production profile for at least another seven years
estimated under the PEA, Seabee is firmly positioned as a key asset
and significant cash flow generator in our portfolio. Underpinning
our longer-term view, we believe that recent drilling success at
Santoy, our large land position and our option on the Fisher
property represent the potential for further mine life
extension."
SEABEE GOLD OPERATIONS OVERVIEW
The Seabee Gold Operation is located in Northern Saskatchewan, Canada, and has been in
continuous operation since 1991. The operation is accessed by
fixed-wing aircraft to an airstrip located on the property.
During winter months, an ice road is built to transport supplies
and equipment by truck. Electrical power to the property is
provided by the provincial power authority via a 138-kilovolt
hydroelectric transmission line from Island Falls,
Saskatchewan. Potable water is obtained locally through the
on-site potable water system to support the operation. The Seabee
camp facilities can accommodate 200 employees at site.
Mineral Resources Estimate
The current Mineral Resources estimate for the Seabee Gold
Operation is based on data as at December
31, 2016 and excludes Porky Main Mineral Resources, which
are considered a historical estimate and do not contribute to
current Mineral Resources.
Table 1: Seabee Mineral Resources Estimate (as at
December 31, 2016)
Category
|
Tonnes
|
Au
|
Au
|
(Mt)
|
(g/t)
|
(Moz)
|
Measured
|
0.81
|
7.71
|
0.20
|
Indicated
|
1.27
|
8.22
|
0.34
|
Total
(M+I)
|
2.07
|
8.02
|
0.54
|
Inferred
|
2.50
|
7.66
|
0.62
|
|
Notes:
Mineral Resources are not Mineral Reserves and have not
demonstrated economic viability. Mineral Resources are
reported inclusive of Mineral Reserves. All figures are rounded to
reflect the relative accuracy of the estimates. Mineral Resources
are reported within classification domains inclusive of
in-situ dilution at a diluted cut-off grade of 4.40 g/t gold at
the Seabee mine and 3.26 g/t gold at the Santoy mine
assuming an underground extraction scenario, a gold
price of US$1,400/oz, C$:US$ exchange rate of 1.25; and
metallurgical recovery of 96.5%. Block modelling
techniques were used for Mineral Resources estimates for the Santoy
mine and the majority of the Seabee mine. Polygonal
techniques were used in areas of historical mining at the Seabee
mine at Porky West. For additional information regarding the
Mineral Resources estimate, please refer to our Annual Information
Form dated March 22, 2017, a copy of which is available under our
profile on the SEDAR website at www.sedar.com.
|
Mineral Reserves Estimate
The current Mineral Reserves estimate for the Seabee Gold
Operation is based on data as at December
31, 2016.
Table 2: Seabee Mineral Reserves Estimate (as at
December 31, 2016)
Category
|
Tonnes
|
Au
|
Au
|
(Mt)
|
(g/t)
|
(Moz)
|
Proven
|
0.52
|
6.97
|
0.12
|
Probable
|
0.85
|
8.93
|
0.25
|
Total
|
1.37
|
8.19
|
0.36
|
|
Notes:
All figures have been rounded to reflect the relative
accuracy of the estimate. Mineral Reserves are based on a cut-off
value of 3.65 g/t gold for the Santoy mine and 4.92 g/t gold for
the Seabee mine assuming: a gold price of US$1,250/oz; a C$:US$
exchange rate of 1.25; milling recoveries of 96.5%; royalty of
3.0%; and operating cost of C$172/t at Santoy mine and C$231/t at
Seabee mine. Mineral Reserves are stated at a mill feed reference
point and include for diluting materials and mining losses. For
additional information regarding the Mineral Reserves estimate
please refer to our Annual Information Form dated March 22, 2017, a
copy of which is available under our profile on the SEDAR website
at www.sedar.com.
|
PRELIMINARY ECONOMIC ASSESSMENT
Based on our operating experience and investment in exploration
to increase Mineral Resources at the Seabee Gold Operation since
our acquisition in May 2016, the PEA
contemplates the technical and investment requirements for and
demonstrates the robust economics of a potential expansion to a
sustained mining and milling rate of 1,050 tonnes per day. This
results in increased gold production and decreased cash costs, over
a seven-year operating period. The increased utilization of
latent capacity within site infrastructure allows for lower capital
investment required for an expansion.
The PEA is preliminary in nature and includes Inferred
Mineral Resources that are considered too speculative geologically
to have the economic considerations applied to them that would
enable them to be categorized as Mineral Reserves, and there is no
certainty that the PEA will be realized.
Mining and Processing
The Seabee Gold Operation is comprised of two underground gold
mines, Santoy and Seabee, and the Seabee mill. Production as
outlined by the PEA is primarily sourced from the Santoy mine.
Primary access at the Santoy mine is provided via a main ramp
from surface. The Santoy mine portal is located at the top of
the Santoy 8 deposit. The Santoy mine uses longitudinally
retreating longhole mining methods for the majority of production,
while areas with minimal strike length use Alimak mining methods to
reduce lateral development costs. As the number of advanced mining
fronts increases at the Santoy mine, the PEA contemplates an
increase in production tonnage of 20% to 1,042 tonnes per day
compared to 2016 production rates of 870 tonnes per day, which were
reported for the period from our acquisition of the Seabee Gold
Operation on May 31, 2016 to
December 31, 2016. The tonnage
movement rate under the expansion averages 1,050 tonnes per day
over the life of the production plan beginning in 2019. On
completion of individual stopes within the Santoy mine, stopes are
backfilled with development waste rock. Material is trucked, using
40-tonne haul trucks, from the Santoy mine approximately 13
kilometers along a dedicated haul road to the Seabee mill. The PEA
includes additional mining equipment with the increase in haulage
and drilling demand as mining advances along strike and deeper at
the Santoy mine and the installation of additional electrical
distribution capacity.
The PEA contemplates that material will continue to be processed
at the Seabee mill, a conventional crushing and grinding circuit,
adjacent to the Seabee mine. The mill utilizes gravity
concentration and cyanide leaching with carbon-in-pulp for gold
recovery to produce doré bars on site. Primary crushing is carried
out with a jaw crusher followed by cone crushing in closed circuit
with a triple deck screen. The grinding circuit consists of a
primary ball mill and two secondary ball mills. A portion of the
primary grinding mill discharge is pumped directly to a Knelson
concentrator with the upgraded material further concentrated on a
shaking table. The gravity concentrate is generally smelted with
the gold recovered in the electrowinning circuit. The PEA
assumes a forecast gold recovery rate of 96.5% for the life of the
production plan, which is consistent with recent historical average
recovery rates. Tailings are pumped to one of two existing tailings
management facilities located approximately two kilometers east of
the Seabee mill. An expansion to the tailings management facility
will be required under operations contemplated in the
PEA.
Selected operating and production statistics from the PEA are
presented in Table 3 and Table 4.
Table 3: Estimated PEA Operating and Production
Statistics
|
Units
|
Annual
Average
(1)
|
Total
(2)
|
Tonnes
Milled
|
kt
|
381
|
2,654
|
Processing
Rate
|
tpd
|
1,042
|
-
|
Mine Life
|
years
|
-
|
7
|
Gold Grade
|
g/t
|
8.51
|
8.30
|
Gold
Recovery
|
%
|
96.5%
|
-
|
Gold
Production
|
koz
|
100
|
683
|
|
Notes:
|
1. Annual Average figures are
for the period from 2018 to 2023.
|
2. Total figures are for the
period from H2 2017 to 2024.
|
Table 4: Estimated PEA Annual Operating Statistics
Year
|
Units
|
H2
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023
|
2024
|
Tonnes
milled
|
kt
|
168
|
365
|
383
|
384
|
384
|
383
|
384
|
203
|
Tonnes
milled
|
tpd
|
920
|
1,000
|
1,050
|
1,050
|
1,051
|
1,051
|
1,051
|
1,051
|
Gold mill feed
grade
|
g/t
|
7.71
|
7.85
|
8.40
|
10.10
|
9.11
|
8.09
|
7.44
|
6.48
|
Gold
recovery
|
%
|
96.5%
|
96.5%
|
96.5%
|
96.5%
|
96.5%
|
96.5%
|
96.5%
|
96.5%
|
Gold
production
|
koz
|
41
|
89
|
100
|
120
|
108
|
96
|
88
|
41
|
Percent of
gold
ounces
attributable
to Inferred
Mineral
Resources
|
%
|
7%
|
18%
|
45%
|
63%
|
48%
|
74%
|
95%
|
47%
|
The total Mineral Resources processed in the PEA include 62% of
the 2016 Inferred Mineral Resources estimate presented in Table 1
above. The PEA does not impact the Seabee Gold Operation's current
2016 Mineral Resource and Mineral Reserve estimates.
Capital Costs Summary
Capital cost estimates in the PEA consider historical
construction costs, equipment purchase prices and actual
development costs. The total capital required to expand the
Seabee Gold Operation to a 1,050 tonnes per day operation over the
seven-year operating plan in the PEA is estimated to be
$89.6 million. The underground
expansion includes the associated lateral development for Alimak
mining, ramp development to support multi-stope longhole mining and
additional mining equipment. The surface infrastructure expansion
includes mine electrical distribution and tailings management
facility expansion. A summary of estimated capital costs is
presented in Table 5 and annual estimated capital costs are shown
in Table 6.
Table 5: Summary of PEA Capital Costs
Capital
Costs
|
Value
($M)
|
Infrastructure
Capital
|
$50.2
|
Capital
Development
|
$23.4
|
Capitalized
Exploration
|
$15.9
|
Total
|
$89.6
|
Table 6: Estimated Annual PEA Capital Costs
Year
|
Units
|
H2
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023
|
2024
|
Infrastructure
Capital
|
$M
|
$4.2
|
$16.2
|
$13.7
|
$7.4
|
$4.5
|
$4.2
|
$0.0
|
$0.0
|
Capital
Development
|
$M
|
$1.8
|
$5.1
|
$4.4
|
$4.8
|
$3.7
|
$3.2
|
$0.4
|
$0.0
|
Capitalized
Exploration
|
$M
|
$1.9
|
$2.7
|
$2.7
|
$2.5
|
$2.5
|
$2.5
|
$0.7
|
$0.4
|
Operating Costs Summary
Cash costs and all-in sustaining costs ("AISC") per payable
ounce of gold sold are non-GAAP financial measures. Please see
"Cautionary Note Regarding Non-GAAP Measures".
Total estimated operating costs in the PEA are presented in
Table 7. These operating costs were developed based on actual
operating experience at the Seabee Gold Operation and are adjusted
where appropriate to characteristics specific to the Santoy mine
and Seabee mill considering the throughput increase to 1,050 tonnes
per day.
Table 7: Summary of PEA Operating Costs
Operating
Costs
|
Value ($/t
milled)
|
Mining
|
$58
|
Processing
|
$20
|
General and
Administrative
|
$52
|
Total
|
$130
|
Cash costs, which include mining, processing and administrative
costs (net of capital development), royalties and refining costs,
total $548 per payable ounce of gold
sold over the seven-year operating plan in the PEA. AISC, which
include infrastructure capital, capital development, capitalized
exploration and reclamation, total $682 per payable ounce of gold sold over the
seven-year operating plan in the PEA.
Financial Analysis
Over the seven-year operating plan outlined in the PEA, the
post-tax NPV using a 5% discount rate is $292.0 million. Key financial estimates presented
in Table 8 are based on the key economic assumptions presented in
Table 9.
Table 8: Key PEA Financial Estimates
|
Units
|
Total
|
Net
Revenue
|
$M
|
$893.5
|
Mining
Costs
|
$M
|
$(154.3)
|
Processing
Costs
|
$M
|
$(52.8)
|
Administration
Costs
|
$M
|
$(138.9)
|
Royalties and
Other
|
$M
|
$(28.5)
|
Operating Cash
Flow
|
$M
|
$519.1
|
Change in Net Working
Capital
|
$M
|
$10.3
|
Operating Cash
Flow
|
$M
|
$529.3
|
Infrastructure
Capital
|
$M
|
$(50.2)
|
Capital
Development
|
$M
|
$(23.4)
|
Capitalized
Exploration
|
$M
|
$(15.9)
|
Reclamation
|
$M
|
$(7.2)
|
Pre-Tax Cash
Flow
|
$M
|
$432.7
|
Tax
|
$M
|
$(86.0)
|
Post-tax Cash
Flow
|
$M
|
$346.7
|
Pre-Tax NPV
(5%)
|
$M
|
$363.5
|
Post-Tax NPV
(5%)
|
$M
|
$292.0
|
|
Notes: Figures may not total
exactly due to rounding.
|
Table 9: Key Economic Assumptions
Assumption
|
Units
|
Value
|
Gold Price
|
$/oz
|
$1,300
|
CAD:USD Exchange Rate
(2017 to 2018)
|
$
|
$1.275
|
CAD:USD Exchange Rate
(2019 onwards)
|
$
|
$1.250
|
Sensitivity Analysis
The Seabee Gold Operation expansion under the PEA demonstrates
strong economic performance across a range of gold prices and
exchange rates. Estimated NPV sensitivities for key operating and
economic metrics are presented in Tables 10 and 11.
Table 10: NPV Sensitivity Analysis: Gold Price and Canadian
Exchange Rate
Pre-tax NPV (5%)
Sensitivities ($M)
|
|
Gold Price
($/oz)
|
$1,100
|
$1,200
|
$1,300
|
$1,400
|
$1,500
|
Canadian
Exchange Rate
|
1.15:1
|
$216
|
$272
|
$329
|
$386
|
$442
|
1.20:1
|
$233
|
$289
|
$346
|
$403
|
$459
|
1.25:1
|
$250
|
$307
|
$364
|
$420
|
$477
|
1.30:1
|
$263
|
$319
|
$376
|
$433
|
$489
|
1.35:1
|
$276
|
$333
|
$389
|
$446
|
$502
|
|
Notes: The Canadian exchange rate
for the row labeled "1.25:1" is assumed to be 1.275:1 in 2017 and
2018 and 1.25:1 thereafter.
|
Table 11: NPV Sensitivity Analysis: Site Costs and
Infrastructure Capital
Pre-tax NPV (5%)
Sensitivities ($M)
|
|
Site Costs (%
change)
|
-20%
|
-10%
|
0%
|
10%
|
20%
|
Infrastructure
Capital
(%
change)
|
20%
|
$420
|
$387
|
$354
|
$322
|
$289
|
10%
|
$424
|
$392
|
$359
|
$326
|
$294
|
0%
|
$429
|
$396
|
$364
|
$331
|
$298
|
-10%
|
$433
|
$401
|
$368
|
$335
|
$303
|
-20%
|
$438
|
$405
|
$373
|
$340
|
$307
|
|
Notes:
Site costs include mining costs, processing costs, administrative
costs, capital development, and capitalized exploration.
|
Environmental and Permitting
Based on the PEA production schedule, the tailings management
facility expansion will be required earlier than contemplated under
our current operations. Such expansion will require an
environmental assessment screening by the relevant regulatory
authorities. The PEA assumes that all requisite approvals and
permits for the expansion will be obtained. While we believe that
such approvals and permits can be obtained on a timely basis and on
acceptable terms, there is no certainty that this will be the
case.
Opportunities and Next Steps
Several potential opportunities to improve the economics of the
Seabee Gold Operation contemplated under the PEA have been
identified. Examples include, but may not be limited to:
- The Seabee mill has the potential to achieve operating
throughput of up to 1,200 tonnes per day based on upgraded mill
facilities and operating experience at similar mills. This would
further increase production from that contemplated under the PEA
and potentially improve operating costs due to economies of scale
and extend mine life.
- The implementation of Operational Excellence projects
identified based on our operating experience that may present
incremental improvements to production and operating costs, which
may include the following:
-
- Drilling and blasting studies to improve fragmentation, reduce
over-blast and reduce dilution, leading to lower costs and better
grade control;
- Equipment availability and utilization improvements to increase
equipment efficiency and lower costs;
- Installation of a ventilation-on-demand system to lower
ventilation costs;
- Improvement and modification of current ground support systems,
increasing efficiency and reducing costs;
- Evaluation of digital tracking of underground operations and
equipment to improve efficiencies;
- Further capacity and efficiency improvements in the process
plant to reduce costs and increase production; and
- Evaluation of a runway extension to allow larger direct flights
to reduce costs and improve efficiency of shift changes.
Further opportunity exists for potential Mineral Resources
discovery and conversion of Mineral Resources to Mineral Reserves
at the current Seabee Gold Operation, including:
- Exploration drilling during 2017 has been successful in
expanding known gold mineralization at Santoy 8 and Santoy Gap as
well as identifying new gold mineralization in the area of Gap
Hanging Wall. These results are expected to upgrade Mineral
Resources when we report Mineral Resources and Mineral Reserves
estimates for year-end 2017. See our news release dated
September 5, 2017, for information
about recent exploration results at the Seabee Gold Operation.
- Potential for new mineralization discoveries in close proximity
to existing infrastructure, including potential at the Carr target, located four kilometers to the
north of Santoy Gap, and on the extension of the Santoy shear on
the Fisher property.
Given the positive financial analysis included in the PEA, we
expect to advance further exploration and engineering work on the
expansion of the Seabee Gold Operation, which will be supported by
our current drilling program to upgrade Inferred Mineral Resources
prior to planned mining. Stakeholder engagement plans have been
developed to support the proposed expansion of the tailings
management facility, and engagement activities defined in these
plans are currently underway.
Qualified Persons
The scientific and technical information contained in this news
release pertaining to the Seabee Gold Operation has been reviewed
and approved by the following qualified persons under National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101"):
- Michael Selby, P.Eng., Principal
Consultant (Mining), SRK Consulting (Canada) Inc.;
- Dominic Chartier, P.Geo., Senior
Consultant (Geology), SRK Consulting (Canada) Inc.;
- Mark Liskowich, P.Geo.,
Principal Consultant (Environmental), SRK Consulting (Canada) Inc.; and
- Jeffrey Kulas, P. Geo., our
Manager Geology, Mining Operations at the Seabee Gold Operation,
with respect to the Mineral Resources estimate only.
The qualified persons have verified the information disclosed
herein, including the sampling, preparation, security and
analytical procedures underlying such information, and are not
aware of any significant risks and uncertainties that could be
expected to affect the reliability or confidence in the information
discussed herein.
Technical Report
A NI 43-101 technical report prepared by SRK Consulting
(Canada) Inc. will be filed on
SEDAR within 45 days of this news release and will be available at
that time on the SSR Mining website.
About SSR Mining
SSR Mining Inc., formerly Silver Standard Resources Inc., 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
SSR Mining Inc.
Vancouver, BC
Toll free: +1 (888) 338-0046
All others: +1 (604) 689-3846
E-Mail: invest@ssrmining.com
To receive SSR Mining's news releases by e-mail, please
register using the SSR Mining website at
www.ssrmining.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: expansion of the Seabee Gold Operation based on the
results of the PEA; the PEA representing production growth,
improved margins and expansion of Mineral Resources;
timing, amount and duration of future production of gold; future
costs of inventory, and cash costs and total costs per payable
ounce of gold; the price of gold; the estimated capital and
operating costs; ability to discover new mineralization, to
upgrade Mineral Resources and convert Mineral Resources to
Mineral Reserves and to extend forecasted mine life
for the Seabee Gold Operation; the estimates of net cash flow, net
present value and economic returns from the Seabee Gold
Operation; expectations regarding the ability to obtain the
necessary environmental approvals for the PEA; anticipated
expansion of the tailings management facility; opportunities to
increase the economics of the Seabee Gold Operation; and our plans
and expectations for the Seabee Gold Operation, including further
exploration and engineering work on the expansion.
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, Puna Operations and our
projects; our ability to replace Mineral Reserves; our ability to
obtain necessary permits for the Chinchillas project; commodity
price fluctuations; political or economic instability and
unexpected regulatory changes; currency and interest rate
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; 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 Puna
Operations; 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 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 VAT 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, including extreme
weather conditions; 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 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 Puna Operations. 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 cash costs and AISC per
payable ounce of gold sold. Non-GAAP measures do not have any
standardized meaning prescribed under IFRS and, therefore, they may
not be comparable to similar measures employed 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. Readers should also refer to our management's discussion
and analysis, available under our corporate profile at
www.sedar.com or on our website at www.silverstandard.com, under
the heading "Non-GAAP and Additional GAAP Financial Measures" for a
more detailed discussion of how we calculate such
measures.
SOURCE SSR Mining Inc.