VANCOUVER, July 12, 2018 /PRNewswire/ - SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") reports second quarter
2018 operating results at our three mines.
Second Quarter 2018 Operating Highlights
- Increased production at Marigold: Produced 49,436 ounces
of gold, an increase of 15% compared to the first quarter.
- Record ore tonnes stacked at Marigold: Stacked a record
7.9 million tonnes of ore at an increased grade of 0.42 g/t.
- Production in line with guidance at Seabee: Produced
23,582 ounces of gold, with all ore sourced from the high-grade
Santoy mine.
- Strong quarterly production at Puna Operations: Produced
1.0 million ounces of silver, for a total of 1.9 million ounces of
silver produced in the first half of 2018, exceeding guidance.
Paul Benson, President and CEO
said, "Solid performance at each of our operations in the second
quarter keeps us well on track for full year production
guidance. With a stronger second half of the year still in
front of us, we look forward to delivering into near-term
growth."
Marigold Mine, U.S.
|
|
Q2
2018
|
Q1
2018
|
% Change
(1)
|
Total material
mined
|
kt
|
15,958
|
16,150
|
(1.2%)
|
Waste
removed
|
kt
|
8,083
|
9,052
|
(10.7%)
|
Ore to leach
pad
|
kt
|
7,875
|
7,099
|
10.9%
|
Strip
ratio
|
w/o
|
1.0
|
1.3
|
(23.1%)
|
Gold grade to leach
pad
|
g/t
|
0.42
|
0.37
|
13.5%
|
Gold
recovery
|
%
|
74.4%
|
73.6%
|
1.1%
|
Gold
produced
|
oz
|
49,436
|
42,960
|
15.1%
|
Gold sold
|
oz
|
46,644
|
42,078
|
10.9%
|
Notes:
|
(1)
|
Percent changes
are calculated using rounded numbers presented in the
table.
|
In the second quarter of 2018, the Marigold mine produced 49,436
ounces of gold, a 15% increase over the first quarter. Gold sales
totaled 46,644 for the quarter, reflecting an increase in bullion
inventory.
During the quarter, 16.0 million tonnes of material were mined,
similar to the first quarter primarily due to longer haul distances
associated with the increase in ore tonnes. We expect total
material mined to increase during the second half of 2018 due to
shorter haul distances and as the four additional haul trucks enter
service. These factors, along with completion of the new leach pad,
are expected to increase gold production through the second half of
the year.
Approximately 7.9 million tonnes of ore were delivered to the
heap leach pads, a quarterly record. Gold grade increased to 0.42
g/t. This compares to 7.1 million tonnes of ore delivered to the
heap leach pads at a gold grade of 0.37 g/t in the first quarter of
2018. The strip ratio was 1.0:1 for the quarter, 23% lower than the
prior quarter.
Seabee Gold Operation, Canada
|
|
Q2
2018
|
Q1
2018
|
% Change
(1)
|
Total ore
milled
|
t
|
84,010
|
93,269
|
(9.9%)
|
Ore milled per
day
|
t/day
|
923
|
1,036
|
(10.9%)
|
Gold mill feed
grade
|
g/t
|
7.95
|
8.95
|
(11.2%)
|
Gold
recovery
|
%
|
97.3%
|
97.4%
|
(0.1%)
|
Gold
produced
|
oz
|
23,582
|
23,717
|
(0.6%)
|
Gold sold
(2)
|
oz
|
20,512
|
20,012
|
2.5%
|
Notes:
|
(1)
|
Percent changes
are calculated using rounded numbers presented in the
table.
|
(2)
|
Beginning with the
first quarter of 2018, the holder of a 3% net smelter returns
royalty elected to receive its royalty in-kind and we will no
longer report these ounces within gold sold.
|
Seabee Gold Operation produced 23,582 ounces of gold in the
second quarter, in line with production in the previous quarter.
Gold sales were 20,500 ounces, lower than production as gold ounces
poured at the end of the second quarter will be sold in the third
quarter.
The mill achieved an average throughput of 923 tonnes per day,
an 11% decrease from the first quarter. Production during the
second quarter was impacted by planned maintenance, the transition
of mining activities to the high-grade Santoy mine, and a forest
fire. Mill throughput is expected to increase through the
second half of the year relative to the second quarter. Gold
recovery for the quarter remained consistent at 97.3%.
Puna Operations, Argentina (1)
|
|
Q2
2018
|
Q1
2018
|
% Change
(4)
|
Ore milled
|
kt
|
396
|
373
|
6.2%
|
Silver mill feed
grade
|
g/t
|
110
|
115
|
(4.3%)
|
Zinc mill feed
grade (2)
|
%
|
0.71%
|
-
|
NA
|
Silver
recovery
|
%
|
63.4%
|
67.7%
|
(6.4%)
|
Zinc recovery
(2)
|
%
|
31.5%
|
-
|
NA
|
Silver
produced
|
koz
|
954
|
938
|
1.7%
|
Silver produced
(attributable) (3)
|
koz
|
716
|
704
|
1.7%
|
Zinc produced
(2)
|
lbs
|
1,521
|
-
|
NA
|
Zinc produced
(attributable) (2) (3)
|
lbs
|
1,141
|
-
|
NA
|
Silver
sold
|
koz
|
1,142
|
1,064
|
7.3%
|
Silver sold
(attributable) (3)
|
koz
|
857
|
798
|
7.4%
|
Notes:
|
(1)
|
Figures are on
100% basis unless otherwise noted.
|
(2)
|
Data for zinc
production and sales relate only to zinc in zinc concentrate.
"NA" indicates data not applicable due to no comparable data
available in Q1 2018.
|
(3)
|
Figures are on a
75% attributable basis.
|
(4)
|
Percent changes
are calculated using rounded numbers presented in the
table.
|
During the second quarter of 2018, the operation produced 1.0
million ounces of silver, for a total of 1.9 million ounces
produced in the first half of 2018, exceeding our silver production
guidance of 1.6 million ounces. Silver sales were 1.1 million
ounces for the quarter, as concentrate inventories were further
reduced. Our attributable share of silver production and sales in
the second quarter were 0.7 million ounces and 0.9 million ounces,
respectively.
Ore was milled at an average rate of 4,353 tonnes per day in the
second quarter, 5% above the previous quarter. Ore milled in the
second quarter contained an average silver grade of 110 g/t, 4%
lower than the 115 g/t average silver grade in the first quarter,
consistent with processing of increasingly lower grade
stockpiles. The average silver recovery in the second quarter
was 64%, 6% lower than the previous quarter.
We commenced production of zinc concentrate from stockpiles
later in the second quarter, and produced approximately 1.5 million
pounds of zinc. No zinc sales occurred during the quarter.
Qualified Persons
The scientific and technical data contained in this news release
relating to the Marigold mine has been reviewed and approved by
Karthik Rathnam, MAusIMM (CP), a
qualified person under National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101") and our Chief
Engineer 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. 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," "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; the expected benefits of the
four additional haul trucks and the new leach pad at the Marigold
mine; ongoing or future development plans and capital replacement,
improvement or remediation programs; the estimates of expected or
anticipated economic returns from our mining projects, including
future sales of metals, concentrate or other products produced by
us; our ability to 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;
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; 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 and significant delays in the collection process in
Argentina; claims and legal
proceedings, including adverse rulings in litigation against us
and/or our directors or officers; compliance with anti-corruption
laws and internal controls, and increased regulatory compliance
costs; complying with emerging climate change regulations and the
impact of climate change; fully realizing our interest in deferred
consideration received in connection with recent divestitures;
fully realizing 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; risks normally associated with the
conduct of joint ventures; 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; information systems
security threats; conflicts of interest that could arise from
certain of our directors' and 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
("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, 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 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.