VANCOUVER, Oct. 12, 2017 /CNW/ - SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") reports third quarter
2017 operating results at our three mines.
Third Quarter 2017 Operating Highlights
- Strong gold sales at Seabee: Sales of 21,798 ounces
of gold in the quarter from bullion inventory and solid gold
production from sustained daily throughput and recovery
rates.
- Record quarterly material moved at Marigold: Mined over
20 million tonnes of material during the quarter. As expected,
third quarter production was lower than the previous quarter at
38,699 ounces of gold.
- Achieved annual production guidance at Puna Operations:
The Pirquitas mill operated at a rate of approximately 5,000 tonnes
per day, which drove production of 1.5 million ounces of silver
during the quarter and 5.0 million ounces year-to-date, surpassing
the lower end of annual production guidance.
Paul Benson, President and CEO
said, "In the third quarter, all three operations had record or
near-record operating achievements, which is particularly notable
at Seabee as the mine was impacted for a significant part of the
quarter by nearby forest fires. With Marigold mining through a
low-grade portion of the orebody this year and Puna Operations
processing stockpiles, the focus on operating performance is
paramount and drives the sustained performance and growth from our
portfolio. We anticipate strong operating performance in the fourth
quarter to round out a successful year for SSR Mining."
Marigold Mine, U.S.
|
|
Q3
2017
|
Q2
2017
|
% Change
(1)
|
Total material
mined
|
kt
|
20,311
|
17,985
|
12.9%
|
Waste
removed
|
kt
|
13,149
|
11,075
|
18.7%
|
Ore to leach
pad
|
kt
|
7,162
|
6,910
|
3.6%
|
Strip
ratio
|
w/o
|
1.8
|
1.6
|
12.5%
|
Gold grade to leach
pad
|
g/t
|
0.31
|
0.31
|
0.0%
|
Gold
recovery
|
%
|
72%
|
73%
|
(1.4%)
|
Gold
produced
|
oz
|
38,699
|
55,558
|
(30.3%)
|
Gold sold
|
oz
|
38,818
|
57,426
|
(32.4%)
|
Notes:
|
(1) Percent changes are
calculated using rounded numbers presented in the
table.
|
In the third quarter of 2017, the Marigold mine produced 38,699
ounces of gold, 30.3% less than the previous quarter due to
continued lower grades of ore stacked as we began mining the upper
benches of the current phase of the Mackay pit. Gold sales totaled
38,818 ounces for the quarter.
A quarterly record of 20.3 million tonnes of material were mined
in the third quarter of 2017, 13% more than the second quarter of
2017, primarily due to planned shorter hauls for waste.
Approximately 7.2 million tonnes of ore were delivered to the heap
leach pads at an average gold grade of 0.31 g/t. This compares to
6.9 million tonnes of ore delivered to the heap leach pads at a
gold grade of 0.31 g/t in the second quarter of 2017. The strip
ratio was 1.8:1 for the quarter, a 13% increase compared to the
previous quarter.
Seabee Gold Operation, Canada
|
|
Q3
2017
|
Q2
2017
|
% Change
(1)
|
Total ore
milled
|
t
|
84,315
|
84,469
|
(0.2%)
|
Ore milled per
day
|
t/day
|
916
|
928
|
(1.3%)
|
Gold mill feed
grade
|
g/t
|
7.03
|
7.97
|
(11.8%)
|
Gold
recovery
|
%
|
97.2%
|
97.3%
|
(0.1%)
|
Gold
produced
|
oz
|
18,058
|
20,690
|
(12.7%)
|
Gold sold
|
oz
|
21,798
|
17,909
|
21.7%
|
Notes:
|
(1) Percent changes are
calculated using rounded numbers presented in the
table.
|
In the third quarter of 2017, the Seabee Gold Operation produced
18,058 ounces of gold, a strong result considering several
operating interruptions. Gold sales were 21,798 ounces for the
third quarter, higher than gold production as bullion inventory
accumulated in the previous quarter was sold in the third
quarter.
During the third quarter, 84,315 tonnes of ore were milled at an
average gold grade of 7.03 g/t. This compares to a total of 84,469
tonnes of ore at an average grade of 7.97 g/t in the second
quarter. The Santoy mine supplied 85% of ore milled, predominantly
from long hole stopes. Underground mining activities at Santoy
experienced operating interruptions during the third quarter as a
result of forest-fire-related power outages and smoke ingress.
The mill achieved an average throughput of 916 tonnes per day
during the quarter, 1.3% lower than the previous quarter due to a
combination of scheduled crusher maintenance activities and
forest-fire-related power outages. Gold recovery remained
consistent at 97.2% in the third quarter.
Puna Operations, Argentina (1)
|
|
Q3
2017
|
Q2
2017
|
% Change
(3)
|
Ore milled
|
kt
|
461
|
446
|
3.4%
|
Silver mill feed
grade
|
g/t
|
153
|
185
|
(17.3%)
|
Silver
recovery
|
%
|
67.8%
|
73.5%
|
(7.8%)
|
Silver
produced
|
koz
|
1,541
|
1,947
|
(20.9%)
|
Silver produced
(attributable) (2)
|
koz
|
1,156
|
1,777
|
n/a
|
Silver
sold
|
koz
|
2,076
|
1,655
|
25.4%
|
Silver sold
(attributable) (2)
|
koz
|
1,557
|
1,473
|
n/a
|
Notes:
|
(1)
|
Figures are on
100% basis unless otherwise noted.
|
(2)
|
Figures for the
third quarter of 2017 are on 75% attributable basis. Figures for
the second quarter of 2017 represent 100% for April and May 2017
and 75% for June 2017.
|
(3)
|
Percent changes
are calculated using rounded numbers presented in the
table.
|
During the first nine months of 2017, the operation produced a
total of 5.0 million ounces of silver, surpassing the lower end of
our improved 2017 production guidance as stockpile grades and
metallurgical performance continued to exceed plan. In the third
quarter of 2017, silver production from stockpiles totaled 1.5
million ounces. Silver sales were 2.1 million ounces for the
quarter. Attributable share of silver production and sales in the
third quarter were 1.2 million ounces and 1.6 million ounces,
respectively.
Ore was milled at an average rate of 5,012 tonnes per day in the
third quarter, 25% above the mill's nominal throughput of 4,000
tonnes per day. Ore milled in the third quarter of 2017 contained
an average silver grade of 153 g/t, 17% lower than the 185 g/t
reported in the second quarter of 2017 as we continue to process
lower grade stockpiles. The average silver recovery in the third
quarter was 67.8%, lower than the previous quarter as expected due
to planned lower silver mill feed grade.
Partial Disposal of Pretium Common Shares
During the third quarter and subsequent to September 30, 2017, we sold 7.9 million common
shares of Pretium Resources Inc. ("Pretium"), realizing pre-tax net
cash proceeds of C$85.4 million, of
which C$70.8 million will be
recognized in the third quarter of 2017. We currently hold
9.04 million common shares, representing approximately 4.99% of
Pretium.
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 Puna Operations has been reviewed and approved by
Bruce Butcher, P.Eng., a Qualified
Person under NI 43-101 and our Director, Mine Planning.
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") 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: future production of gold, silver and other metals;
the prices of gold, silver and other metals; future successful
development of our projects; 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 updates; 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 achieve our production guidance; 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; 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 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 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 Marigold mine and
the Seabee Gold Operation. 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.
SOURCE SSR Mining Inc.