VANCOUVER, April 14, 2020 /CNW/ - SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") reports first quarter
2020 operating results at our three mines.
First Quarter 2020 Operating Highlights
- Robust quarterly production: Produced over 107,000
consolidated gold equivalent ounces from our three operations
during the first quarter.
- High-grade production at Seabee: Produced 29,521 ounces
of gold as mill feed grade exceeded 10 g/t gold with recovery of
98.1% for a strong start to the year. Mill throughput exceeded
1,050 tonnes per day during January and February.
- Delivering at Marigold: Produced 58,448 ounces of
gold as the mine stacked 5.0 million tonnes of ore at a gold grade
of 0.30 g/t. Total material mined was 20.3 million tonnes,
continuing to demonstrate strong and efficient operating
practices.
- Consistent operating metrics at Puna: Steady state mill
throughput and silver feed grade and recovery lead to 1.8 million
ounces of silver produced during the quarter. Mill throughput
averaged 4,300 tonnes per day up until the temporary suspension of
operations on March 20.
- Temporary suspension of operations at Puna and
Seabee: Announced temporary suspension of operations at
Puna and Seabee in response to the COVID-19 pandemic. Marigold has
experienced only minor impacts from the pandemic and continues
normal operations at this time.
"In this challenging global environment, our focus, above all
else, has been the health and safety of our employees and
stakeholders," said Paul Benson,
President and CEO. "The operations produced over 107,000 gold
equivalent ounces for an outstanding start to the year as the
suspension of operations at Puna and Seabee occurred late in the
quarter. We continue to closely monitor local and national
developments in each of the countries in which we operate, with our
overarching priorities being the well-being of our people and a
continued focus on long-term shareholder value."
Marigold Mine, U.S.
|
|
Q1
2020
|
Q4
2019
|
% Change
(1)
|
Total material
mined
|
kt
|
20,259
|
18,457
|
9.8%
|
Waste
removed
|
kt
|
15,255
|
11,736
|
30.0%
|
Ore to leach
pad
|
kt
|
5,004
|
6,721
|
(25.5)%
|
Strip
ratio
|
w/o
|
3.0
|
1.7
|
76.5%
|
Gold grade to leach
pad
|
g/t
|
0.30
|
0.36
|
(16.7)%
|
Gold
recovery
|
%
|
76.0%
|
76.0%
|
0.0%
|
Gold
produced
|
oz
|
58,448
|
59,186
|
(1.2)%
|
Gold sold
|
oz
|
58,000
|
61,088
|
(5.1)%
|
|
|
Notes:
|
(1)
|
Percent changes
are calculated using rounded numbers presented in the
table.
|
In the first quarter of 2020, the Marigold mine produced 58,448
ounces of gold, a 1% decrease from the fourth quarter of 2019
mainly due to reduced ore tonnes delivered to the leach pad and
lower gold grades. Gold sales totaled 58,000 ounces, 5% lower than
the previous quarter and in line with production.
During the quarter, 20.3 million tonnes of material were mined,
a 10% increase from the fourth quarter of 2019 reflecting the
impact of shorter haul distances associated with increased waste
movement and some benefit from the new hydraulic loader
commissioned during the first quarter. Approximately 5.0 million
tonnes of ore were delivered to the heap leach pads at a grade of
0.30 g/t gold. This compares to 6.7 million tonnes of ore delivered
to the heap leach pads at a grade of 0.36 g/t gold in the fourth
quarter of 2019. The gold grade delivered to the leach pad was 17%
lower quarter on quarter, consistent with plan. The strip ratio was
3.0:1 for the first quarter of 2020. Construction of the new leach
pad is progressing per plan and on track to be completed during the
year.
Seabee Gold Operation, Canada
|
|
Q1
2020
|
Q4
2019
|
% Change
(1)
|
Total ore
milled
|
t
|
89,282
|
87,394
|
2.2%
|
Ore milled per
day
|
t/day
|
981
|
950
|
3.3%
|
Gold mill feed
grade
|
g/t
|
10.34
|
7.89
|
31.1%
|
Gold
recovery
|
%
|
98.1%
|
97.9%
|
0.2%
|
Gold
produced
|
oz
|
29,521
|
22,069
|
33.8%
|
Gold sold
(2)
|
oz
|
27,714
|
24,362
|
13.8%
|
|
Notes:
|
(1)
|
Percent changes
are calculated using rounded numbers presented in the
table.
|
(2)
|
Beginning with the
first quarter of 2018, the holder of the 3% net smelter return
royalty elected to receive its royalty in-kind; these ounces are
not reported within gold sold.
|
The Seabee Gold Operation produced a record 29,521 ounces of
gold in the first quarter of 2020, a 34% increase from the fourth
quarter of 2019, largely due to higher gold mill feed grade. Gold
sales totaled 27,714 ounces for the first quarter.
The mill achieved an average throughput of 981 tonnes per day
over the first quarter, a 3% increase compared to the previous
quarter due to increased mill feed from the Santoy mine. Mill
throughput in January and February exceeded 1,050 tonnes per day,
while March performance was impacted by the suspension of
operations near the end of the month. Gold mill feed grade for the
quarter was 10.34 g/t, 31% higher compared to the fourth quarter of
2019 due to the mining of higher-grade stopes as planned. Gold
recovery for the first quarter was 98.1%.
Puna Operations, Argentina
|
|
Q1
2020
|
Q4
2019
|
% Change
(1)
|
Total material
mined
|
kt
|
1,953
|
3,244
|
(39.8)%
|
Waste
removed
|
kt
|
1,674
|
2,725
|
(38.6)%
|
Ore mined
|
kt
|
279
|
519
|
(46.2)%
|
Strip
ratio
|
w/o
|
6.0
|
5.3
|
13.2%
|
Ore milled
|
kt
|
340
|
400
|
(15.0)%
|
Silver mill feed
grade
|
g/t
|
170
|
174
|
(2.3)%
|
Lead mill feed
grade
|
%
|
0.81
|
0.99
|
(18.2)%
|
Zinc mill feed
grade
|
%
|
0.44
|
0.63
|
(30.2)%
|
Silver
recovery
|
%
|
95.3
|
95.1
|
0.2%
|
Lead
recovery
|
%
|
91.4
|
91.9
|
(0.5)%
|
Zinc
recovery
|
%
|
55.0
|
54.3
|
1.3%
|
Silver
produced
|
koz
|
1,770
|
2,132
|
(17.0)%
|
Silver
sold
|
koz
|
1,834
|
2,584
|
(29.0)%
|
Lead produced
(2)
|
klb
|
5,536
|
7,985
|
(30.7)%
|
Lead sold
(2)
|
klb
|
6,407
|
9,371
|
(31.6)%
|
Zinc produced
(3)
|
klb
|
1,821
|
3,007
|
(39.4)%
|
Zinc sold
(3)
|
klb
|
2,166
|
3,067
|
(29.4)%
|
|
Notes:
|
(1)
|
Percent changes
are calculated using rounded numbers presented in the
table.
|
(2)
|
Data for lead
production and sales relate only to lead in lead
concentrate.
|
(3)
|
Data for zinc
production and sales relate only to zinc in zinc
concentrate.
|
Puna Operations produced 1.8 million ounces of silver in the
first quarter of 2020, 17% lower than the prior quarter, mainly due
to lower mill throughput and silver mill feed grade. Silver sales
totaled 1.8 million ounces, in line with production. Total material
mined during the first quarter was impacted by weather events and
by the temporary suspension of operations commencing March 20, 2020. Existing ore stockpiles are
sufficient to support milling activity should a restart of
operations be feasible in the near-term.
During the first quarter of 2020, approximately 340,000 tonnes
of ore was milled, a 15% decrease compared to the previous quarter,
as ore milled was impacted by the temporary suspension of
operations. Prior to the temporary suspension, mill throughput
averaged 4,300 tonnes per day. Processed ore in the first quarter
of 2020 contained an average silver grade of 170 g/t, a 2% decrease
compared to the fourth quarter of 2019, consistent with the mine
plan and average silver reserve grade. The strip ratio during the
first quarter was 6.0:1. The total material mined was consistent
with plan, considering the suspension of operations in March.
SSR Mining COVID-19-related Regional Financial
Support
In light of the challenging economic environment, SSR Mining is
committing up to $350,000 whereby
each of our operating mines will donate up to $100,000 and our project offices will donate up
to $25,000, towards supporting local
communities in association with the COVID-19 pandemic. This
initiative may include donations of supplies and equipment to local
health authorities, as well as monetary support for local
businesses impacted by the outbreak.
Outlook
On March 25, 2020, we withdrew our
2020 operating guidance across all operations until further notice
due to the uncertainty with respect to future developments of the
COVID-19 pandemic, including the duration, severity and scope of
the outbreak, the actions taken to contain or treat the COVID-19
outbreak and potential impacts on mining operations. We will
continue to monitor the situation closely and will provide an
update with our first quarter 2020 consolidated financial
results.
Qualified Persons
The scientific and technical data contained in this news release
relating to the Marigold mine has been reviewed and approved by
Greg Gibson, P.E., SME Registered Member, a qualified person under
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101") and General 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 Puna Operations has been reviewed
and approved by Robert Gill, P.Eng.,
a qualified person under NI 43-101 and General Manager at Puna
Operations.
About SSR Mining
SSR Mining 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 Puna Operations in Jujuy, 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.
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") 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," "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;
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 at the Marigold mine, the
Seabee Gold Operation and Puna Operations; timing of our
exploration and development programs; expected timing of the
construction of the new leach pad at the Marigold mine in 2020; the
sufficiency of existing ore stockpiles at Puna Operations to
support milling activity in the event a restart of operations is
feasible in the near-term; the commitment of donations of up to an
aggregate of $350,000 from our
operating mines and project offices towards supporting local
communities in association with the COVID-19 pandemic; 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; the
continued monitoring of developments of the COVID-19 pandemic; the
potential impact of epidemics, pandemics or other public health
crises, including the COVID-19 outbreak, on our business and
financial condition, including in connection with our 2020
operating guidance across all operations; the expected timing of
our 2020 operating guidance update; 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, Puna Operations and our
projects; our ability to replace Mineral Reserves; 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 concentrates 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 failing to obtain governmental permits, or
non-compliance with our permits; our ability to attract and retain
qualified personnel and management; the impact of governmental
regulations, including health, safety and environmental
regulations, including increased costs and restrictions on
operations due to compliance with such regulations; unpredictable
risks and hazards related to the development and operation of a
mine or mineral property that are beyond our control; reclamation
and closure requirements for our mineral properties; potential
labour unrest, including labour actions by our unionized employees
at Puna Operations; indigenous peoples' title claims and rights to
consultation and accommodation may affect our existing operations
as well as development projects and future acquisitions; certain
transportation risks that could have a negative impact on our
ability to operate; assessments by taxation authorities in multiple
jurisdictions; recoverability of value added tax ("VAT") and
significant delays in the VAT collection process in Argentina; claims and legal proceedings,
including adverse rulings in litigation against us and/or our
directors or officers; complying with anti-corruption laws and
internal controls, and increased regulatory compliance costs;
complying with emerging climate change regulations and the impact
of climate change; the ability to fully realize the value of our
shareholdings in our marketable securities, due to changes in
price, liquidity or disposal cost of such marketable securities;
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; reputation loss resulting in decreased investor
confidence; increased challenges in developing and maintaining
community relations and an impediment to our overall ability to
advance our projects; an event of default under our convertible
notes issued in 2013 or 2019 may significantly reduce our liquidity
and adversely affect our business; failure to meet covenants under
our senior secured revolving credit facility; epidemics, pandemics
or other public health crises, including the current outbreak of
novel coronavirus ("COVID-19"), could adversely affect our
business; information systems security threats; the ability to
fully realize our interest in deferred consideration received in
connection with divestitures; conflicts of interest that could
arise from certain of our directors' and/or officers' involvement
with other natural resource companies; other risks related to our
common shares; 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.
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; our ability to continue operating the Marigold mine, the
Seabee Gold Operation and Puna Operations; dilution and mining
recovery assumptions; assumptions regarding stockpiles; the success
of mining, processing, exploration and development activities; the
accuracy of geological, mining and metallurgical estimates; no
significant unanticipated operational or technical difficulties;
maintaining good relations with the communities surrounding the
Marigold mine, the Seabee Gold Operation and Puna Operations; no
significant events or changes relating to regulatory,
environmental, health and safety matters; certain tax matters; the
expected impacts of epidemics, pandemics or other public health
crises, including the current outbreak of COVID-19, on our business
and financial condition; the anticipated effects of our COVID-19
response plan; and no significant and continuing adverse changes in
general economic conditions or conditions in the financial markets
(including commodity prices, foreign exchange rates and inflation
rates). 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.
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SOURCE SSR Mining Inc.