VANCOUVER, June 27, 2019 /PRNewswire/ - SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") is pleased to announce it
has acquired approximately 8,900 hectares contiguous to the
Marigold mine in Nevada, U.S.
comprised of a 100% interest in the Trenton Canyon and Buffalo
Valley properties (the "Properties") from Newmont Goldcorp
Corporation (NYSE: NEM) (TSX: NGT) ("Newmont") and Fairmile Gold
Mining, Inc ("Fairmile") for an aggregate purchase price of
$22 million in cash and the grant to
Newmont of a 0.5% net smelter returns ("NSR") royalty on each of
the Properties, and the assumption of the long-term environmental
and reclamation obligations for the Properties.
Transaction and Property Highlights
- Acquisition of a large, wholly-owned prospective land package
with 340,000 ounces of historical gold production, contiguous to
the southern boundary of the Marigold mine.
- Historical Indicated Mineral Resources estimate of 418,000
ounces of gold at Buffalo Valley.
- Increases Marigold's land position on trend with the Mackay pit
to 19,800 hectares in Nevada's
Battle Mountain - Eureka gold belt, an 84% increase.
- Planned exploration activities aim to further define and
potentially increase Mineral Resources at the Properties.
- With exploration success, potential exists to enhance the
current Marigold mine plan to extend mine life, increase production
or improve margins.
- Increases land position, which is favorable to host oxide and
additional deep sulphide exploration targets.
- Also in 2018 and 2019, consolidated four additional parcels
totaling 130 hectares of land located within the Marigold mine land
package.
Paul Benson, President and CEO
said, "Acquiring the Trenton Canyon and Buffalo Valley properties
is expected to increase our gold resources and add multiple zones
of mineralization proximate to our Marigold mine infrastructure.
The acquisitions increase our land position by 84% since acquiring
the Marigold mine and the Valmy
property. Exploration plans aim to upgrade and expand known gold
mineralization to potentially extend mine life, increase operating
flexibility or access higher margin tonnes. We expect to commence
exploration activities in the near-term and to begin incorporating
the Properties into our longer-term mine planning as we evaluate
opportunities to continue creating value at Marigold for our
shareholders."
Overview of the Properties
The Properties comprise an 8,900-hectare land package to the
south and contiguous with the Marigold mine. The addition of the
Properties increases our total land holding at the Marigold mine to
19,800 hectares.
The Trenton Canyon property consists of 7,350 hectares located
immediately south and along the mineralized trend from the Marigold
mine. The property was previously operated as an open-pit
run-of-mine heap leach operation from 1996 to 2001. Based on data
provided by Newmont, production during this period totaled
approximately 290,000 ounces of gold from the North Peak, West and
South pits within the Trenton Canyon property. The property also
includes the North Peak heap leach pads and processing facilities.
The Trenton Canyon property was previously 100% owned by
Newmont.
The Buffalo Valley property consists of 1,550 hectares located
southwest of the Marigold mine. The historic Indicated Mineral
Resources estimate for Buffalo Valley is 418,000 ounces of gold (20
million tonnes at an average gold grade of 0.65 g/t), as of
December 31, 20181. Such
Mineral Resources estimate was prepared by Newmont and reported in
its press release dated February 21,
2019, and is based on Newmont data (including collar,
survey, lithology and assay data), using ordinary kriging with
appropriate estimation parameters in accordance with industry
standards. Such estimate needs to be verified by SSR Mining by
conducting detailed verification checks, including QA/QC of
location, geological, density and assay data. A qualified person
for SSR Mining has not done sufficient work to classify the
historical estimate at Buffalo Valley as current Mineral Resources
and therefore SSR Mining is not treating the historical estimate as
current Mineral Resources. Based on data provided by Newmont,
historical production at Buffalo Valley from 1989 to 1991 totaled
approximately 50,000 ounces of gold. Buffalo Valley was previously
operated as a joint venture between Newmont (70% ownership and
operator) and Fairmile (30% ownership).
Historical exploration activities on the Properties consist of
over 2,700 drill holes totaling more than 340,000 meters of
drilling completed between 1980 and 2012. The Properties host the
same rock formations present at the Marigold mine, while displaying
a higher intensity of rock alteration. Historic drilling
indicates the prospective mineralized corridor at Trenton Canyon
extends for at least 3,000 meters in a north-south direction, while
surface geochemical anomalies potentially extend the mineralized
footprint for over 5,000 meters. Our exploration activities are
expected to commence in the near-term and will initially target
Mineral Resources definition and confirmation.
See Figure 1 for a map of the Properties and the current
Marigold mine. This figure also shows four additional land parcels
acquired in 2018 and 2019, which have the potential for additional
mineralization or infrastructure benefits.
Transaction Overview
Under the terms of the purchase agreements entered into with
Newmont and Fairmile, we have acquired Newmont's and Fairmile's
respective interest in the Properties for aggregate cash
consideration of $22 million plus the
grant to Newmont of a 0.5% NSR royalty on all mineral production
from each of the Properties. The purchase price was funded from
cash on hand. Under the terms of the purchase agreements, we have
provided financial assurances to the environmental regulatory
authorities with respect to the Properties' long-term environmental
and reclamation obligations totaling approximately $23.1 million.
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1 Mineral Resources disclosed by
Newmont have been grossed up to illustrate 100% SSR Mining
ownership of Buffalo Valley and are subject to rounding. Metal
price used for Mineral Resources estimate is $1,400 per ounce of
gold. Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
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Figure 1: Location of the Trenton Canyon, Buffalo
Valley and Marigold properties in Nevada, U.S.
Qualified Persons
The scientific and technical data contained in this news release
has been reviewed and approved by Karthik
Rathnam, MAusIMM (CP) and James
Carver, a SME Registered Member, each of whom is a qualified
person under National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101"). Mr. Rathnam and
Mr. Carver are employed at the Marigold mine as Resource Manager,
Corporate and Chief Geologist, respectively.
About SSR Mining
SSR Mining Inc. is a Canadian-based precious metals producer
with three operations, including the Marigold 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," 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: our ability to discover and increase Mineral
Resources at the Properties and the Marigold mine; the potential to
enhance the current Marigold mine plan to extend mine life,
increase production or improve margins; expected timing for
commencement of exploration activities on the Properties; future
production of gold, silver and other metals; Mineral Resources
estimates; estimated production rates for gold, silver and other
metals produced by us; ongoing or future development plans and
capital replacement, improvement or remediation programs; 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 2013 Notes
or our 2019 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 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.
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.
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SOURCE SSR Mining Inc.