VANCOUVER, July 12, 2017 /CNW/ - Silver Standard Resources
Inc. (NASDAQ: SSRI) (TSX: SSO) ("Silver Standard") reports second
quarter 2017 operating results at our three mines.
Second Quarter 2017 Operating Highlights
- Continued strong production growth: Quarterly
attributable production exceeded 100,000 gold equivalent ounces
from three operations.
- Increased tonnage at Marigold: Mined 18.0 million tonnes
and stacked 6.9 million tonnes of ore, both a quarter-on-quarter
increase.
- Gold production at Marigold to plan: Produced 55,558
ounces of gold during the second quarter of 2017.
- Higher mill throughput at Seabee: Record monthly ore
milled at approximately 1,050 tonnes per day in June 2017, supporting strong quarterly mill ore
tonnage of 928 tonnes per day.
- Robust gold production at Seabee: Produced 20,690 ounces
of gold during the second quarter of 2017.
- Exceeded planned operating performance at Pirquitas: The
mill continued to operate at a rate of approximately 5,000 tonnes
per day. Combined with higher than expected grades within the
stockpiles, this contributed to total silver production of 1.9
million ounces during the second quarter, 28% higher than the first
quarter.
Paul Benson, President and CEO
said, "During the second quarter of 2017 all three mines
demonstrated strong operating performance, resulting in over
100,000 gold equivalent ounces of production. Both Marigold and
Seabee mined more total material compared to the previous quarter
and Seabee continued to demonstrate its ability to process ore at
improved daily throughput, achieving approximately 1,050 tonnes per
day in the month of June. With this strong operating performance,
we are well-positioned for the year and for continued growth."
Marigold Mine, U.S.
|
|
Q2
2017
|
Q1
2017
|
% Change
1
|
Total material
mined
|
kt
|
17,985
|
16,736
|
7.5%
|
Waste
removed
|
kt
|
11,075
|
11,062
|
0.1%
|
Ore to leach
pad
|
kt
|
6,910
|
5,674
|
21.8%
|
Strip
ratio
|
w/o
|
1.60
|
1.95
|
(17.9%)
|
Gold grade to leach
pad
|
g/t
|
0.31
|
0.42
|
(26.2%)
|
Gold
recovery
|
%
|
73%
|
74%
|
(1.4%)
|
Gold
produced
|
oz
|
55,558
|
55,215
|
0.6%
|
Gold sold
|
oz
|
57,426
|
52,528
|
9.3%
|
Notes:
|
1. Percent changes
are calculated using rounded numbers presented in the
table.
|
In the second quarter of 2017, the Marigold mine produced 55,558
ounces of gold, in line with the previous quarter production. Gold
sales totaled 57,426 ounces for the quarter including inventory
from the first quarter.
A total of 18 million tonnes were mined in the second quarter of
2017, 7.5% more than the first quarter of 2017, primarily due to
improved weather conditions. Approximately 6.9 million tonnes of
ore were delivered to the heap leach pads at an average gold grade
of 0.31 g/t as we completed the current mining phase at the Mackay
pit. This compares to 5.7 million tonnes of ore delivered to the
heap leach pads at a gold grade of 0.42 g/t in the first quarter of
2017. Gold grade mined in the second quarter was 26% lower
than the first quarter due to planned pit phase sequencing and
mining a higher amount of lower-grade ore as we completed the
deeper phase of the Mackay pit. The strip ratio declined to
1.60:1 in the quarter, an 18% reduction compared to the previous
quarter.
Seabee Gold Operation, Canada
|
|
Q2
2017
|
Q1
2017
|
% Change
1
|
Total ore
milled
|
t
|
84,469
|
72,394
|
16.7%
|
Ore milled per
day
|
t/day
|
928
|
804
|
15.4%
|
Gold mill feed
grade
|
g/t
|
7.97
|
9.22
|
(13.6%)
|
Gold
recovery
|
%
|
97.3%
|
97.7%
|
(0.4%)
|
Gold
produced
|
oz
|
20,690
|
21,023
|
(1.6%)
|
Gold sold
|
oz
|
17,909
|
22,411
|
(20.1%)
|
Notes:
|
1.
Percent changes are calculated using rounded numbers presented
in the table.
|
In the second quarter of 2017, the Seabee Gold Operation
produced 20,690 ounces of gold. Gold sales were 17,909 ounces for
the second quarter, reflecting an increase in bullion
inventory.
A near-quarterly record 84,469 tonnes of ore was milled at an
average gold grade of 7.97 g/t during the second quarter of 2017.
This compares to a total of 72,394 tonnes of ore at an average
grade of 9.22 g/t in the first quarter. Ore was mined at both the
Santoy and Seabee mines with lower grade ore at Seabee reducing the
overall average mill grade during the second quarter. The Santoy
mine complex supplied 76% of ore milled, predominantly from long
hole stopes. Gold recovery remained relatively consistent at 97.3%
in the current quarter. The ventilation system upgrade project is
on schedule to be completed in July
2017.
Stope production at Santoy was impacted by a fall of ground
early in the second quarter. While there were no injuries to people
or damage to equipment, restrictions were put in place until a full
review of the ground support in the area was completed. These
self-imposed restrictions had the effect of reducing tonnage and
grade to the plant during the quarter. Following modifications to
the support design and installation, production from Santoy
returned to planned levels in June.
During the second quarter, the mill achieved an
average throughput of 928 tonnes per day, 15% higher than the
previous quarter, with a record 1,049 tonnes per day milled in the
month of June, as the mines focused on Operational Excellence
initiatives to deliver and process more ore tonnage.
Puna Operations, Argentina
1
|
|
Q2
2017
|
Q1
2017
|
% Change
3
|
Ore milled
|
kt
|
446
|
449
|
(0.7%)
|
Silver mill feed
grade
|
g/t
|
185
|
145
|
27.6%
|
Silver
recovery
|
%
|
73.5%
|
72.6%
|
1.2%
|
Silver
produced
|
koz
|
1,947
|
1,520
|
28.1%
|
Silver produced
(attributable) 2
|
koz
|
1,777
|
1,520
|
n/a
|
Silver
sold
|
koz
|
1,655
|
1,443
|
14.7%
|
Silver sold
(attributable) 2
|
koz
|
1,473
|
1,443
|
n/a
|
Notes:
|
1.
|
Figures are on
100% basis unless otherwise noted.
|
2.
|
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.
|
The operation produced a total of 1.9 million ounces of silver
from processing of stockpiles, a 28% increase compared to the first
quarter of 2017. Silver sales were 1.7 million ounces for the
quarter.
Ore was milled at an average rate of 4,903 tonnes per day in the
second quarter, 23% above the mill's nominal throughput of 4,000
tonnes per day. Ore milled in the second quarter of 2017 contained
an average silver grade of 185 g/t, 28% higher than the 145 g/t
reported in the first quarter of 2017 due to better than expected
grades in the stockpiles. The average silver recovery in the second
quarter was 73.5%, higher than the 72.6% recovery in the previous
quarter, in line with the higher silver mill feed grade.
Silver Standard finalized its joint venture to combine the
Pirquitas mine with the Chinchillas project on May 31, 2017. The joint venture, named Puna
Operations Inc., is comprised of Silver Standard's Pirquitas
property and Golden Arrow Resources' Chinchillas property and is
owned on a 75%/25% basis by each company, respectively. We are the
joint venture operator. As a result of the joint venture, our
attributable share of production in the second quarter was 1.8
million ounces of silver and attributable sales were 1.5 million
ounces.
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 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"). 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; expected exploration and development
expenditures; 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 the Pirquitas mine; the
estimated cost of sustaining capital; 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 expand Mineral
Resources and convert Mineral Resources into Mineral Reserves;
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, the Pirquitas mine and
our projects; our ability to replace Mineral Reserves; our ability
to successfully integrate the Chinchillas project, on a joint
venture basis, into our current operations; 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 the
Pirquitas mine; 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, including
the anticipated closure of the Pirquitas mine in late 2017 or early
2018, 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 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, 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 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. 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 Silver Standard Resources Inc.