VANCOUVER, April 10, 2019 /PRNewswire/ - SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") reports first quarter
2019 operating results at our three mines.
First Quarter 2019 Operating Highlights
- Achieved strong consolidated production: Produced over
112,000 gold equivalent ounces in the first quarter of 2019.
- Record quarterly gold production at Seabee: Produced
31,183 ounces of gold due to higher mill throughput and timing of
gold pours, representing a quarter-on-quarter increase of 52%.
- Solid operating performance at Marigold: Mined 17.3
million tonnes of material while gold production remained strong at
53,151 ounces.
- Silver production doubled at Puna Operations: Produced
2.4 million ounces of silver, double the silver production in the
fourth quarter of 2018, with lead and zinc production of 6.8
million pounds and 1.6 million pounds, respectively. Ramp up at the
Chinchillas mine was substantially completed during the
quarter.
Paul Benson, President and CEO
said, "It is pleasing to have a good start to the year
with a near-record consolidated gold equivalent
production of over 112,000 ounces, highlighted by quarterly record
gold production at Seabee, where we continue to achieve higher mill
throughput rates. The Chinchillas project was substantially
completed during the quarter, setting us up for steady state
production at Puna Operations. With all three operations performing
well, we are positioned to achieve record production in 2019."
Marigold Mine, U.S.
|
|
Q1
2019
|
Q4
2018
|
% Change
(1)
|
Total material
mined
|
kt
|
17,295
|
17,039
|
1.5%
|
Waste
removed
|
kt
|
11,767
|
11,361
|
3.6%
|
Ore to leach
pad
|
kt
|
5,528
|
5,679
|
(2.7%)
|
Strip
ratio
|
w/o
|
2.1
|
2.0
|
5.0%
|
Gold grade to leach
pad
|
g/t
|
0.34
|
0.34
|
0.0%
|
Gold
recovery
|
%
|
73.0%
|
72.9%
|
0.1%
|
Gold
produced
|
oz
|
53,151
|
54,306
|
(2.1%)
|
Gold sold
|
oz
|
55,517
|
50,550
|
9.8%
|
|
Notes:
|
(1)
|
Percent changes
are calculated using rounded numbers presented in the
table.
|
In the first quarter of 2019, the Marigold mine produced 53,151
ounces of gold, a 2% decline from the fourth quarter mainly due to
weather conditions during the period. Gold sales totaled 55,517
ounces, 10% higher than the previous quarter as we sold bullion
inventory accumulated in the fourth quarter of 2018.
During the quarter, 17.3 million tonnes of material were mined,
a 2% increase compared to the fourth quarter of 2018, as we
commenced mining the next phase of the Mackay pit, which resulted
in shorter haul distances and offset the weather events early in
the quarter.
Approximately 5.5 million tonnes of ore were delivered to the
heap leach pads at a grade of 0.34 g/t gold. This compares to 5.7
million tonnes of ore delivered to the heap leach pads at a grade
of 0.34 g/t gold in the fourth quarter of 2018. The strip ratio was
2.1:1 for the quarter.
Seabee Gold Operation, Canada
|
|
Q1
2019
|
Q4
2018
|
% Change
(1)
|
Total ore
milled
|
t
|
90,756
|
86,447
|
5.0%
|
Ore milled per
day
|
t/day
|
1,008
|
940
|
7.2%
|
Gold mill feed
grade
|
g/t
|
8.59
|
10.20
|
(15.8%)
|
Gold
recovery
|
%
|
97.2%
|
97.6%
|
(0.4%)
|
Gold
produced
|
oz
|
31,183
|
20,473
|
52.3%
|
Gold sold
|
oz
|
27,999
|
21,711
|
29.0%
|
|
Notes:
|
(1)
|
Percent changes
are calculated using rounded numbers presented in the
table.
|
Seabee Gold Operation produced a record 31,183 ounces of gold in
the first quarter of 2019, largely due to timing of gold pours at
year-end and aided by increased mill throughput rate. Gold
sales totaled 27,999 ounces for the first quarter, 29% higher than
the fourth quarter of 2018.
The mill achieved an average throughput of 1,008 tonnes per day
over the first quarter, a 7% increase compared to the previous
quarter, and 1,079 tonnes per day for the month of March, both
reflecting a higher mining rate at the Santoy mine. Gold mill feed
grade was 8.59 g/t, in line with plan. Gold recovery remained
consistent at 97.2%.
Puna Operations, Argentina (1)
|
|
Q1
2019
|
Q4
2018
|
% Change
(2)
|
Total material
mined
|
kt
|
2,618
|
897
(3)
|
n/a
|
Waste
removed
|
kt
|
2,469
|
696
(3)
|
n/a
|
Ore mined
|
kt
|
150
|
201
(3)
|
n/a
|
Strip
ratio
|
w/o
|
16.5
|
3.5
(3)
|
n/a
|
Ore milled
|
kt
|
345
|
342
|
0.9%
|
Silver mill feed
grade
|
g/t
|
235
|
133
|
76.7%
|
Zinc mill feed
grade
|
%
|
0.46%
|
1.14%
|
(59.6%)
|
Lead mill feed
grade
|
%
|
1.07%
|
0.92%
|
16.3%
|
Silver
recovery
|
%
|
91.7%
|
81.5%
|
12.5%
|
Zinc
recovery
|
%
|
47.3%
|
49.5%
|
(4.4%)
|
Lead
recovery
|
%
|
83.6%
|
83.1%
|
0.6%
|
Silver
produced
|
koz
|
2,392
|
1,189
|
101.2%
|
Silver
sold
|
koz
|
927
|
932
|
(0.5%)
|
Zinc produced
(4)
|
klb
|
1,640
|
4,014
|
(59.1%)
|
Zinc sold
(4)
|
klb
|
3,218
|
1,983
|
62.3%
|
Lead produced
(5)
|
klb
|
6,789
|
2,735
|
148.2%
|
Lead sold
(5)
|
klb
|
2,977
|
1,059
|
181.1%
|
|
Notes:
|
(1)
|
Figures are on
100% basis.
|
(2)
|
Percent changes
are calculated using rounded numbers presented in the
table.
|
(3)
|
Data is for the
period subsequent to December 1, 2018, the date upon which
commercial production was declared at the
Chinchillas mine.
|
(4)
|
Data for zinc
production and sales relate only to zinc in zinc
concentrate.
|
(5)
|
Data for lead
production and sales relate only to lead in lead
concentrate.
|
The Chinchillas mine ramp up was substantially completed during
the first quarter of 2019. Total material mined from the
Chinchillas open pit increased significantly compared to the
previous quarter as commercial production was achieved on
December 1, 2018. The strip
ratio during the first quarter was 16.5:1 due to commencing a new
pushback at the Chinchillas pit as planned.
Silver production was 2.4 million ounces for the quarter, an
increase of 101% relative to the fourth quarter of 2018, mainly due
to higher silver mill feed grade and silver recovery, as ore was
sourced exclusively from the Chinchillas mine. Silver sales totaled
0.9 million ounces as concentrate shipments commenced later in the
quarter. On an attributable basis, silver production and sales for
the first quarter totaled 1.8 million ounces and 0.7 million
ounces, respectively.
During the first quarter, ore was milled at an average of 3,830
tonnes per day, a 3% increase compared to ore milled in the
previous quarter, mainly due to improvements in mill flotation
pumping. Processed ore in the first quarter of 2019 contained an
average silver grade of 235 g/t, a 77% increase compared to the
fourth quarter of 2018, due to solely processing higher grade
Chinchillas ore. Metallurgical recoveries of silver, lead and zinc
are expected to be variable until we achieve steady state
production. The new tailings pump system at the Pirquitas plant was
completed 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
James Frost, P.E., a qualified person under National Instrument
43-101 – Standards of Disclosure for Mineral Projects ("NI
43-101") and Technical Services Superintendent 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, 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.
Senior 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; timing for completion of the
ramp up and achievement of steady state production at the
Chinchillas mine; achieving record production in 2019; 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 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 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 Puna credits
balance 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.
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.