Mr. Paul Benson reports
SSR MINING REPORTS SECOND QUARTER 2018 PRODUCTION RESULTS
SSR Mining Inc. has released the second quarter 2018 operating results at its three mines.
Second quarter 2018 operating highlights:
- Increased production at Marigold: produced 49,436 ounces of gold, an increase of 15 per cent compared with 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 gram per tonne (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 the 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 chief executive officer, 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, UNITED STATES
Q2 2018 Q1 2018
Total material mined kt 15,958 16,150
Waste removed kt 8,083 9,052
Ore to leach pad kt 7,875 7,099
Strip ratio w/o 1.0 1.3
Gold grade to leach pad g/t 0.42 0.37
Gold recovery % 74.4 73.6
Gold produced oz 49,436 42,960
Gold sold oz 46,644 42,078
In the second quarter of 2018, the Marigold mine produced 49,436 ounces of gold, a 15-per-cent increase over the first quarter. Gold sales totalled 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. SSR Mining expects 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 with 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 per cent lower than the prior quarter.
SEABEE GOLD OPERATION, CANADA
Q2 2018 Q1 2018
Total ore milled t 84,010 93,269
Ore milled per day t/d 923 1,036
Gold mill feed grade g/t 7.95 8.95
Gold recovery % 97.3 97.4
Gold produced oz 23,582 23,717
Gold sold (2) oz 20,512 20,012
Beginning with the first quarter of 2018, the
holder of a 3-per-cent net smelter returns (NSR)
royalty elected to receive its royalty in kind,
and the company will no longer report these
ounces within gold sold.
The 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-per-cent 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 per cent.
PUNA OPERATIONS, ARGENTINA (1)
Q2 2018 Q1 2018
Ore milled kt 396 373
Silver mill feed grade g/t 110 115
Zinc mill feed grade (2) % 0.71 -
Silver recovery % 63.4 67.7
Zinc recovery (2) % 31.5 -
Silver produced koz 954 938
(attributable) (3) koz 716 704
Zinc produced (2) lb 1,521 -
(attributable) (2) (3) lb 1,141 -
Silver sold koz 1,142 1,064
(attributable) (3) koz 857 798
(1) Figures are on a 100-per-cent basis unless
(2) Data for zinc production and sales relate
only to zinc in zinc concentrate.
(3) Figures are on a 75-per-cent attributable
During the second quarter of 2018, the Puna operations produced 1.0 million ounces of silver, for a total of 1.9 million ounces produced in the first half of 2018, exceeding SSR Mining's silver production guidance of 1.6 million ounces. Silver sales were 1.1 million ounces for the quarter, as concentrate inventories were further reduced. SSR Mining's attributable share of silver production and sales in the second quarter were 700,000 ounces and 900,000 ounces, respectively.
Ore was milled at an average rate of 4,353 tonnes per day in the second quarter, 5 per cent above the previous quarter. Ore milled in the second quarter contained an average silver grade of 110 g/t, 4 per cent lower than the average silver grade of 115 g/t in the first quarter, consistent with processing of increasingly lower-grade stockpiles. The average silver recovery in the second quarter was 64 per cent, 6 per cent lower than the previous quarter.
SSR Mining 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.
The scientific and technical data contained in this news release relating to the Marigold mine have been reviewed and approved by Karthik Rathnam, MAusIMM (CP), a qualified person under National Instrument 43-101, Standards of Disclosure for Mineral Projects, and SSR Mining's chief engineer at the Marigold mine. The scientific and technical data contained in this news release relating to the Seabee gold operation have been reviewed and approved by Cameron Chapman, PEng, 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 the Puna operations have been reviewed and approved by Bruce Butcher, PEng, a qualified person under NI 43-101 and SSR Mining's director, mine planning.
About SSR Mining
SSR Mining 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-per-cent-owned-and-operated Puna operations joint venture in Jujuy province, Argentina. The company also has two feasibility-stage projects and a portfolio of exploration properties in North America and South America. It is committed to delivering safe production through relentless emphasis on operational excellence. It is also focused on growing production and mineral reserves through the exploration and acquisition of assets for accretive growth, while maintaining financial strength.
We seek Safe Harbor.
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