The Master Plan Feasibility Level Study
Reserve Case Produces an NPV 5% of $1.7 Billion
The Alternative PEA Case Including Ardich
Resources Produces a Potential NPV 5% of $2.2 Billion
DENVER, Nov. 30, 2020 /CNW/ - SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) (ASX: SSR) ("SSR Mining") is pleased to
announce the positive results of its independently prepared Master
Plan study of the Çöpler District ("Çöpler District Master Plan
2020" or "CDMP20") which will be set forth in an independent
National Instrument 43-101 Technical Report on the Çöpler mine.
Çöpler has been in continuous operations since 2010 and has
cumulatively produced over 2 Moz of gold. The CDMP20 summarizes SSR
Mining's current development strategy for Çöpler and includes
analysis for two production scenarios:
- Mineral Reserve case (the "Reserve Case") incorporating a
supplemental flotation circuit prepared to a Feasibility Study
level; and
- An alternative Preliminary Economic Assessment case including
the development of Ardich (the "PEA Case"). (1)
Highlights of the Çöpler District Master Plan
2020:
(All results on a 100% basis; currency in U.S.
dollars)
- Significant increase in Mineral Reserves and Mineral
Resources: Updated figures and growth since December 31, 2019:
-
- 4.0 Moz Mineral Reserves – increase of 22%;
- 7.4 Moz Measured & Indicated Mineral Resources
(2) – increase of 24%; and
- 3.1 Moz Inferred Resources – increase of 58%.
- Reserve Case outlines benefits of operational improvements
and the addition of a supplemental flotation circuit:
-
- NPV5% of $1.7
billion;
- Life of mine production of 3.6 Moz of gold;
- Average annual production of 266,000 ounces of gold over the
first five years;
- Average AISC of $865 per ounce
(3) over the first five years;
- Average annual free cash flow of $224
million (4) over the first five years;
- Incorporation of supplemental flotation circuit: Increases
sulfide plant throughput, lowers operating costs; and
- 21-year asset life at higher processing rates: Mine life
extension a result of lower processing costs, additional pit
phases, additional tailings capacity, and an increased gold
price.
- PEA Case shows potentially robust economic results and
increased production scale as a result of including development of
the Ardich mineral resources:
-
- NPV5% of $2.2
billion;
- Life of mine production of 4.6 Moz of gold;
- Average annual production of 306,000 ounces of gold over the
first five years;
- Average AISC of $886 per ounce
(3) over the first five years;
- Average annual free cash flow of $249
million (4) over the first five years;
- 22-year asset life;
- Ardich deposit incremental development capital of ~$50 million;
- The Ardich deposit is a newly identified deposit that is
separate to the other deposits on the property. Drilling is
continuing at the Ardich deposit and it is expected that the
drilling will further define the Mineral Resource; and
- The PEA Case is preliminary in nature and includes an economic
analysis that is based, in part, on Inferred Mineral Resources.
Inferred Mineral Resources are considered too speculative
geologically for the application of economic considerations that
would allow them to be categorized as Mineral Reserves, and there
is no certainty that the results will be realized. Mineral
Resources that are not Mineral Reserves do not have demonstrated
economic viability.
- Approval for construction of the supplemental flotation
circuit: SSR Mining's Board of Directors has approved
construction of the supplemental flotation circuit at a total cost
of $18 million with commissioning
expected in Q3 2021.
- Permitting advancing: Permitting and Environmental
Impact Assessment ("EIA") updates for both Çöpler and Ardich are
underway.
- Tailings capacity constraint removed: A seventh lift of
the tailings storage facility ("TSF") along with improved settling,
resulting from the flotation circuit removes the Mineral Reserve
tailings capacity constraint on total tonnes processed. Engineering
and permitting is proceeding on a second smaller tailings facility
in anticipation of growth at Ardich and Çöpler.
- Exploration continues at Ardich with positive drill
results: Results from drilling completed since February 2020 provide encouragement for extension
of the mineralized zones beyond the extents of the updated Mineral
Resource. Drilling continues with three drills currently
active.
Rod Antal, President and CEO
stated, "We are pleased with the results of the updated Çöpler
District Master Plan which demonstrates long-term value and the
significant organic growth potential of this world-class operation.
The CDMP20 clearly outlines a potential path to sustaining ~300,000
ounces of annual production from the district for at least 10
years, the extension of the overall mine life to 20+ years at
increased processing rates, and the generation of robust free cash
flows over the mine life.
In addition to numerous highly prospective targets identified
within the district over the last several years, the subsequent
Ardich drilling results, coupled with the C2 exploration results
from last week, continue to indicate the significant upside we see
at Çöpler for years to come. Ardich represents the most advanced
project in the district with exploration, engineering, and
permitting continuing to advance the project to potentially bring
it into production by 2023."
Çöpler District Master Plan 2020 Summary
The CDMP20 summarizes the current SSR Mining development
strategy for Çöpler and includes analysis for two production
scenarios:
- Reserve Case demonstrating the Mineral Reserves and
incorporating a supplemental flotation circuit; and
- The alternative PEA Case outlining the development of
Ardich.
A location plan showing the facility locations and the
boundaries of the Reserve Case and the PEA Case is shown in Figure
1.
The CDMP20 scope included:
- Updated Mineral Resource on the Çöpler, Çakmaktepe and Ardich
deposits;
- Updated Mineral Reserve on the Çöpler and Çakmaktepe
deposits;
- The incorporation of a supplemental flotation circuit in the
existing sulfide plant; and
- PEA which includes the preliminary development plan for the
Ardich Mineral Resources.
Figure 1. CDMP20 Reserve Case and PEA Case Boundaries.
The Reserve Case is supported by feasibility study level work on
the currently operated pits at the Çöpler and Çakmaktepe deposits,
the heap leach facility, and the sulfide plant. The processing
analysis in the Reserve Case includes incorporation of a flotation
circuit into the existing sulfide plant to upgrade sulfide
sulfur to fully utilize grinding and pressure oxidation ("POX")
autoclave capacity. The flotation circuit is in detailed design and
preliminary construction works are underway pending final
permitting which is expected in late 2020.
The PEA Case on an expanded Çöpler project includes the new
predominantly oxide Ardich deposit for the enlarged project area,
and that reflects the increased capital costs and infrastructure
required. The PEA Case analyzes inclusion of production from Ardich
in a whole of project analysis and represents a significant change
from the Reserve Case economic results and production profile.
The key production and economic analysis from the CDMP20 are
shown in Table 1.
Table 1. CDMP20 Results Summary.
Item
|
Unit
|
Reserve
Case
|
PEA
Case
|
Oxide
Processed
|
Heap Leach
Quantity
|
kt
|
7,668
|
25,008
|
Gold Feed
Grade
|
g/t
|
1.22
|
1.69
|
Sulfide
Processed
|
Quantity
Milled
|
kt
|
51,084
|
54,073
|
Gold Feed
Grade
|
g/t
|
2.24
|
2.33
|
Total Gold
Produced
|
Oxide –
Gold
|
koz
|
256
|
956
|
Sulfide –
Gold
|
koz
|
3,334
|
3,691
|
Total –
Gold
|
koz
|
3,591
|
4,646
|
Oxide – Gold
Recovery
|
%
|
73
|
68
|
Sulfide – Gold
Recovery
|
%
|
91
|
91
|
5-Year Annual
Average
|
Average Gold
Produced
|
koz
|
266
|
306
|
Free Cash
Flow
|
$M
|
224
|
249
|
Production Costs
(3)
|
$/oz Au
|
682
|
701
|
All–in Sustaining
Costs (3)
|
$/oz Au
|
865
|
886
|
Key Financial
Results
|
Production Costs
(3)
|
$/oz Au
|
748
|
726
|
All–in Sustaining
Costs (3)
|
$/oz Au
|
945
|
893
|
Site Operating
Costs
|
$/t
treated
|
47.09
|
42.87
|
After-Tax NPV
(5%)
|
$M
|
1,733
|
2,164
|
Mine Life
|
years
|
21
|
22
|
Note: 5-Year annual
average is for the period January 2021 to December 2025.
|
Sulfide Plant Flotation Circuit
A 50 to 150 tph flotation circuit will increase overall sulfide
plant throughput, utilizing latent capacity in the sulfide plant,
in particular the grinding and POX circuits. Total plant throughput
will increase up to a maximum of 400 tph, depending on ore type and
chemistry. Total plant and flotation circuit throughput will
modulate to produce a concentrate that will maintain maximum
autoclave sulfide sulfur throughput rates.
The flotation circuit is being installed between grinding and
acidulation, as shown in Figure 2. A bleed / slip stream from the
grinding thickener feed will go to flotation, gold bearing sulfide
concentrate will return to the grinding thickener to be combined
with POX feed. The carbonate rich flotation tailings go directly to
leaching.
The projected benefits of the flotation circuit are:
- A significant increase in overall plant throughput rate (1.9 to
2Mtpa design up to a max 3Mtpa);
- Increased tailings settled density provides additional TSF
capacity;
- Reduced reagent usage (acid and lime); and
- Making the sulfide plant less dependent on input ore chemical
parameters (less process excursions & reduced mine costs).
Figure 2. Flotation circuit block flow diagram and
graphics.
Figure 3. Flotation circuit graphics.
Figure 4. Flotation circuit graphics.
Ardich
The Ardich deposit is a newly discovered deposit that is
separate to the other deposits on the property. Drilling is
continuing at Ardich and is expected to further define and expand
the Mineral Resource. The development of Ardich requires
development of a new open pit that is 6 km from the current Çöpler
pit and 1 km from the Çakmaktepe pit.
The PEA Case defines the first iteration of the potential
development plan for Ardich. Permitting and planning for
development is underway. The production profile of the PEA Case is
outlined below in Figure 5.
Figure 5. PEA Case production profile.
Note: 2020E gold
production of 330k ounces calculated based on year-to-date actual
production of 244k ounces, plus 86k ounces of estimated gold
production in Q4 2020.
|
Inferred Mineral Resources from Ardich are included in the PEA
Case. The Ardich oxide Mineral Resources in the PEA Case for feed
to the oxide heap leach represent a more than doubling of the
production rate at an average grade that is 50% higher than the
Çöpler oxide heap leach processing rate and average grade in the
Reserve Case. The PEA Case includes assumptions for separate
capital, infrastructure and permitting that will be required to
develop the Ardich Mineral Resources. The Ardich Mineral Resource
was not included in the previous Technical Report and so the PEA
represents a significant change in information.
The PEA Case is preliminary in nature and includes an economic
analysis that is based, in part, on Inferred Mineral Resources.
Inferred Mineral Resources are considered too speculative
geologically for the application of economic considerations that
would allow them to be categorized as Mineral Reserves, and there
is no certainty that the results will be realized. Mineral
Resources that are not Mineral Reserves do not have demonstrated
economic viability.
NPV Sensitivities
Figure 6. Reserve Case NPV Sensitivity.
Figure 7. PEA Case NPV Sensitivity.
Mineral Resources
Overall, there has been a 24% increase in Measured and Indicated
contained gold and a 58% increase in Inferred contained gold. The
new work has for the first time identified Measured Mineral
Resources at Çöpler and Ardich.
The differences have been calculated between the CDMP20 Mineral
Resources and the previous Mineral Resources reported as at
December 31, 2019. The complete
Mineral Resource is shown in Table 2 for each deposit, material
type, and classification.
The differences are a function of the following changes:
- Reduction in cut-off grades due to lower unit costs, higher
throughputs in the sulfide plant, and increased gold price;
- Larger conceptual pit shell selecting additional model cells
above the cut-off;
- Review of metallurgical recoveries;
- Update to Çakmaktepe and Ardich resource models to incorporate
recent drillhole data;
- Review of Mineral Resource classification method; and
- Depletion through mining since 31
December 2019.
Table 2. CDMP20 Mineral Resources Summary.
CDMP20 Mineral
Resources Summary (as at the Effective Date)
|
Classification
|
Tonnage
(kt)
|
Grades
|
Contained
Metal
|
Au
(g/t)
|
Ag
(g/t)
|
Cu
(%)
|
Gold
(koz)
|
Silver
(koz)
|
Copper
(klb)
|
Çöpler Mine Oxide
Mineral Resource
|
Measured
|
287
|
1.29
|
7.75
|
0.09
|
12
|
72
|
540
|
Indicated
|
25,139
|
0.98
|
3.44
|
0.15
|
789
|
2,781
|
81,399
|
Measured +
Indicated
|
25,427
|
0.98
|
3.49
|
0.15
|
801
|
2,853
|
81,939
|
Inferred
|
33,083
|
0.96
|
7.16
|
0.13
|
1,017
|
7,614
|
94,935
|
Çöpler Mine
Sulfide Mineral Resource
|
Measured
|
2,454
|
2.22
|
7.21
|
–
|
175
|
569
|
–
|
Indicated
|
84,558
|
1.84
|
5.04
|
–
|
5,015
|
12,617
|
–
|
Measured +
Indicated
|
87,012
|
1.86
|
4.71
|
–
|
5,190
|
13,186
|
–
|
Inferred
|
34,073
|
1.54
|
12.72
|
–
|
1,692
|
13,937
|
–
|
Çakmaktepe Oxide
Mineral Resource
|
Measured
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
Indicated
|
3,626
|
1.53
|
8.50
|
–
|
179
|
993
|
–
|
Measured +
Indicated
|
3,626
|
1.53
|
8.50
|
–
|
179
|
993
|
–
|
Inferred
|
1,205
|
0.85
|
4.04
|
–
|
33
|
157
|
–
|
Ardich Oxide
Mineral Resource
|
Measured
|
4,707
|
1.63
|
–
|
–
|
246
|
–
|
–
|
Indicated
|
12,817
|
1.62
|
–
|
–
|
666
|
–
|
–
|
Measured +
Indicated
|
17,524
|
1.62
|
–
|
–
|
912
|
–
|
–
|
Inferred
|
4,713
|
1.62
|
–
|
–
|
246
|
–
|
–
|
Ardich Sulfide
Mineral Resource
|
Measured
|
695
|
2.56
|
–
|
–
|
57
|
–
|
–
|
Indicated
|
2,231
|
3.71
|
–
|
–
|
266
|
–
|
–
|
Measured +
Indicated
|
2,926
|
3.43
|
–
|
–
|
323
|
–
|
–
|
Inferred
|
782
|
4.24
|
–
|
–
|
107
|
–
|
–
|
Bayramdere Oxide
Mineral Resource
|
Measured
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
Indicated
|
145
|
2.34
|
20.82
|
–
|
11
|
97
|
–
|
Measured +
Indicated
|
145
|
2.34
|
20.82
|
–
|
11
|
97
|
–
|
Inferred
|
8
|
2.17
|
19.95
|
–
|
1
|
5
|
–
|
CPMD20 Mineral
Resources Total
|
Measured
|
8,143
|
1.87
|
2.45
|
0.00
|
490
|
641
|
540
|
Indicated
|
128,517
|
1.68
|
3.99
|
0.03
|
6,926
|
16,485
|
81,399
|
Measured +
Indicated
|
136,660
|
1.69
|
3.90
|
0.03
|
7,416
|
17,126
|
81,939
|
Inferred
|
73,865
|
1.30
|
9.14
|
0.06
|
3,094
|
21,713
|
94,935
|
- Mineral Resources have an effective date of November 27, 2020.
- Mineral Resources are reported based on end of August 2020 topography surface.
- Mineral Resources are reported inclusive of Mineral Reserves.
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
- Mineral Resources are shown on a 100% basis. Çöpler Mineral
Resources are located on ground held 80% by SSR Mining, Çakmaktepe
and Bayramdere Mineral Resources are located on ground held 50% by
SSR Mining, and approximately 96% of Ardich Mineral Resources are
located on ground held 80% by SSR Mining, with the remainder
located on ground 50% held by SSR Mining.
- Çöpler Sulfide Indicated total includes stockpiles: 6,674 kt @
2.63 g/t Au (*).
- Çakmaktepe Oxide Indicated total includes stockpiles: 11 kt @
2.69 g/t Au (t).
- At Çöpler: oxide is defined as material <2% total sulfur and
sulfide material is ≥2% total sulfur.
- At Ardich and Çakmaktepe, low-sulfur (LS) oxide is defined as
material with <1% total sulfur, high-sulfur (HS) oxide is
material with ≥1% and <2% total sulfur, and sulfide material is
≥2% total sulfur.
- At Bayramdere: oxide is defined as material <2% total
sulfur. There is no sulfide material at Bayramdere.
- All Mineral Resources in the CDMP20 were assessed for
reasonable prospects for eventual economic extraction by reporting
only material that fell within conceptual pit shells based on metal
prices of $1,750/oz for gold
($1,400/oz for gold and $19.00/oz for silver for Bayramdere). The
following parameters were used:
-
- Metallurgical recoveries in oxide: Çöpler 62.3%–78.4%,
Çakmaktepe 38.0%–80.0%, Ardich 40.0%–73.0%, and Bayramdere 75.0%,
and in sulfide: Çöpler 85.0%, and Ardich 82.9%;
- Gold cut off grades in oxide: Çöpler 0.32–0.41 g/t Au,
Çakmaktepe 0.36–0.76 g/t Au, Ardich 0.30–0.55 g/t Au, and
Bayramdere 0.35–0.50 g/t Au, and in sulfide: Çöpler 0.73 g/t Au and
Ardich 0.77 g/t Au, (there are no credits for Ag or Cu in the
cut-off grade calculations); allowances have been made for royalty
payable.
- Reported Mineral Resources contain no allowances for unplanned
dilution or mining recovery.
- Totals may vary due to rounding.
Mineral Reserves
Overall, there has been a 39% increase in tonnage above the
cut-off across both combined Mineral Reserve categories, with a
corresponding 22% increase in contained gold. The major proportion
of the increase is from larger pit design at Çöpler.
The differences have been calculated between the CDMP20 Mineral
Reserves and the previous Mineral Reserves reported as at
December 31, 2019. The complete
Mineral Reserve is shown in Table 3 for each deposit, material
type, and classification.
The differences are a function of the following changes:
- New designs for two new phases beneath the Çöpler pit;
- Reduction in cut-off grades from the increased throughput
provided by the flotation circuit, reduced unit costs and increased
gold price;
- Review of metallurgical recoveries;
- Review of Çakmaktepe North; and
- Depletion through mining since December
31, 2019.
Table 3. CDMP20 Mineral Reserves Summary.
CDMP20 Mineral
Reserves Summary (as at the Effective Date)
|
Classification
|
Tonnage
(kt)
|
Grades
|
Contained
Metal
|
Au
(g/t)
|
Ag
(g/t)
|
Cu
(%)
|
Gold
(koz)
|
Silver
(koz)
|
Copper
(klb)
|
Çöpler Mine –
Oxide
|
Proven Mineral
Reserve
|
230
|
1.23
|
8.97
|
0.06
|
9
|
66
|
294
|
Probable Mineral
Reserve
|
7,364
|
1.23
|
6.16
|
0.13
|
290
|
1,458
|
20,549
|
Probable –
Stockpile
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
Total Mineral
Reserve
|
7,595
|
1.23
|
6.24
|
0.12
|
299
|
1,525
|
20,843
|
Çöpler Mine –
Sulfide
|
Proven Mineral
Reserve
|
2,140
|
2.42
|
7.63
|
–
|
166
|
525
|
–
|
Probable Mineral
Reserve
|
42,461
|
2.18
|
5.73
|
–
|
2,970
|
7,819
|
–
|
Probable –
Stockpile
|
6,674
|
2.63
|
–
|
–
|
564
|
–
|
–
|
Total Mineral
Reserve
|
51,274
|
2.24
|
5.06
|
–
|
3,700
|
8,344
|
–
|
Çakmaktepe Mine –
Oxide
|
Proven Mineral
Reserve
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
Probable Mineral
Reserve
|
274
|
1.26
|
10.91
|
–
|
11
|
96
|
–
|
Probable –
Stockpile
|
11
|
2.69
|
–
|
–
|
1
|
–
|
–
|
Total Mineral
Reserve
|
285
|
1.32
|
10.49
|
–
|
12
|
96
|
–
|
CDMP20 – Oxide
Reserve
|
Proven Mineral
Reserve
|
230
|
1.23
|
8.97
|
0.06
|
9
|
66
|
294
|
Probable Mineral
Reserve
|
7,638
|
1.23
|
6.33
|
0.13
|
301
|
1,554
|
20,549
|
Probable –
Stockpile
|
11
|
2.69
|
–
|
–
|
1
|
–
|
–
|
Total Mineral
Reserve
|
7,879
|
1.23
|
6.40
|
0.12
|
311
|
1,621
|
20,843
|
CDMP20 – Sulfide
Reserve
|
Proven Mineral
Reserve
|
2,140
|
2.42
|
7.63
|
–
|
166
|
525
|
–
|
Probable Mineral
Reserve
|
42,461
|
2.18
|
5.73
|
–
|
2,970
|
7,819
|
–
|
Probable –
Stockpile
|
6,674
|
2.63
|
–
|
–
|
564
|
–
|
–
|
Total Mineral
Reserve
|
51,274
|
2.24
|
5.06
|
–
|
3,700
|
8,344
|
–
|
CDMP20 Mineral
Reserves Total
|
Proven Mineral
Reserve
|
2,370
|
2.30
|
7.76
|
0.01
|
175
|
591
|
294
|
Probable Mineral
Reserve
|
50,099
|
2.03
|
5.82
|
0.02
|
3,272
|
9,373
|
20,549
|
Probable –
Stockpile
|
6,685
|
2.63
|
–
|
–
|
564
|
–
|
–
|
Total Mineral
Reserve
|
59,154
|
2.11
|
5.24
|
0.02
|
4,011
|
9,964
|
20,843
|
- Effective date of the CDMP20 Mineral Reserve is November 27, 2020.
- The Mineral Reserves were developed based on mine planning work
completed in October 2020 and
estimated based on End of August 2020
topography surface.
- Mineral Reserve cut-offs are based on $1,350/oz Au gold price; average oxide recoveries
are 73% and average sulfide recoveries are 91%.
- Çöpler oxide cut-off grades 0.47–0.59 g/t Au, Çöpler sulfide
cut-off grade 1.05 g/t Au, Çakmaktepe oxide cut off grades
0.52–0.71 g/t Au; all cut off grades include allowance for royalty
payable. There are no credits for silver or copper in the cut-off
grade calculations. There is no Çakmaktepe Sulfide Mineral
Reserve.
- Economic analysis has been carried out using a long-term gold
price of $1,585/oz Au. The economic
analysis has used a Q4'20 start date.
- Mineral Reserves tabulated include 403 kt at 2.47 g/t Au from
the mine plan scheduled for September
2020.
- Totals may vary due to rounding.
Ownership
The Çöpler mine is owned and operated by Anagold Madencilik
Sanayi ve Ticaret Anonim Şirketi ("Anagold"). SSR Mining controls
80% of the shares of Anagold, Lidya Madencilik Sanayi ve Ticaret
A.Ş. ("Lidya"), controls 18.5%, and a bank wholly owned by Çalık
Holdings A.Ş., holds the remaining 1.5%. Exploration tenures
surrounding the project area and mining at Çakmaktepe are subject
to joint venture agreements between SSR Mining and Lidya that have
varying interest proportions. SSR Mining controls 50% of the shares
of Kartaltepe Madencilik Sanayi ve Ticaret Anonim Şirketi and 50%
of Tunçpinar Madencilik Sanayi ve Ticaret Anonim Şirketi. The other
50% is controlled by Lidya. Greater than 96% of the Mineral
Resource is located on SSR Mining owned 80% ground, with the
remainder of the mineralization within the 50/50% ownership
boundary.
Qualified Persons
The following people served as the Qualified Persons ("QPs") for
the CDMP20 Technical Report as defined in National Instrument
43-101, Standards of Disclosure for Mineral Projects, and in
compliance with Form 43-101F1:
- Bernard Peters, BEng (Mining),
FAusIMM (201743), employed by OreWin Pty Ltd as Technical Director
– Mining, was responsible for the overall preparation of the CDMP20
and, the Mineral Reserve estimates; and
- Sharron Sylvester, BSc (Geol),
RPGeo AIG (10125), employed by OreWin Pty Ltd as Technical Director
– Geology, was responsible for the preparation of the Mineral
Resources.
Mr. Peters and Ms. Sylvester have each reviewed and approved the
information in this news release relevant to the portion of the
CDMP20 for which they are responsible.
Data Verification and QA/QC
Data verification procedures are well-established at the
project. Routine ongoing checking of all data is undertaken prior
to being uploaded to the database. This is followed by
campaign-based independent data verification audits at milestone
stages throughout data collection programs.
For drillhole data, verification includes the checking of DGPS
collar coordinates relative to topographic surveys, checking of
down-hole surveys relative to adjacent readings and planned dip and
azimuth of the hole, checking logged data entries to ensure they
are consistent with log key sheets, cross-checking a subset of
assay data with the original laboratory reports, and submission of
and review of QA/QC data.
The QA/QC program has historically consisted of a combination of
QA/QC sample types that are designed to monitor different aspects
of the sample preparation and assaying process: Blanks are
routinely inserted in order to identify the presence of
contamination through the sample preparation process; a variety of
CRM standards are routinely inserted in order to monitor and
measure the accuracy of the assay laboratory results over time;
Field duplicates are routinely inserted as a means of monitoring
and assessing sample homogeneity and inherent grade variability and
to enable the determination of bias and precision between sample
pairs; laboratory duplicates are inserted as a means of testing the
precision of the laboratory measurements; and inter-laboratory pulp
duplicates are submitted to alternative independent laboratory to
assess for bias or drift. The rate of submission has been modified
over time but is currently 3%–5% for blanks, CRMs, and duplicates,
and 5%–10% for field duplicates.
Endnotes
- The PEA Case is preliminary in nature and includes an economic
analysis that is based, in part, on Inferred Mineral Resources.
Inferred Mineral Resources are considered too speculative
geologically for the application of economic considerations that
would allow them to be categorized as Mineral Reserves, and there
is no certainty that the results will be realized. Mineral
Resources that are not Mineral Reserves do not have demonstrated
economic viability.
- Inclusive of Mineral Reserves.
- Production costs and AISC are determined on a per ounce gold
produced basis and do not consider the application of inventory
movements or deferred waste stripping. Production costs do not
equate to cash costs prepared under SSR Mining non-GAAP measures.
AISC do not equate to AISC prepared under SSR Mining non-GAAP
measures.
- Free cash flow before interest and debt repayments.
About SSR Mining
SSR Mining Inc. is a leading, free cash flow focused
intermediate gold company with four producing assets located in the
USA, Turkey, Canada, and Argentina, combined with a global pipeline of
high-quality development and exploration assets in the USA, Turkey,
Mexico, Peru, and Canada. In 2019, the four operating assets
produced over 720,000 ounces of gold and 7.7 million ounces of
silver.
SSR Mining's diversified asset portfolio is comprised of high
margin, long-life assets along several of the world's most prolific
precious metal districts including the Çöpler mine along the
Tethyan belt in Turkey; the
Marigold mine along the Battle
Mountain-Eureka trend in
Nevada, USA; the Seabee mine along
the Trans-Hudson Corridor in Saskatchewan, Canada; and the Puna mine
along the Bolivian silver belt in Jujuy, Argentina. SSR Mining has an experienced
leadership team with a proven track record of value creation.
Across SSR Mining, the team has expertise in project construction,
mining (open pit and underground), and processing (pressure
oxidation, heap leach, and flotation), with a strong commitment to
health, safety and environmental management.
SSR Mining intends to leverage its strong balance sheet and
proven track record of free cash flow generation as foundations to
organically fund growth across the portfolio and to facilitate
superior returns to shareholders.
SSR Mining is listed under the ticker symbol SSRM on the NASDAQ
and the TSX, and SSR on the ASX.
SSR Mining Contacts
F. Edward Farid, Executive Vice
President, Chief Corporate Development Officer
Michael McDonald, Director,
Corporate Development & Investor Relations
SSR Mining Inc.
E-Mail: invest@ssrmining.com
Phone: +1 (888) 338-0046 or +1 (604) 689-3846
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
Except for statements of historical fact relating to us,
certain statements contained in this news release constitute
forward-looking information, future oriented financial information,
or financial outlooks (collectively "forward-looking information")
within the meaning of Canadian securities laws. Forward-looking
information may be contained in this document and our other public
filings. Forward-looking information relates to statements
concerning our outlook and anticipated events or results and in
some cases, can be identified by terminology such as "may", "will",
"could", "should", "expect", "plan", "anticipate", "believe",
"intend", "estimate", "projects", "predict", "potential",
"continue" or other similar expressions concerning matters that are
not historical facts.
Forward-looking statements in this news release are based on
certain key expectations and assumptions made by us. Although we
believe that the expectations and assumptions on which such
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because we
can give no assurance that they will prove to be correct.
Forward-looking statements are subject to various risks and
uncertainties which could cause actual results and experience to
differ materially from the anticipated results or expectations
expressed in this news release. The key risks and uncertainties
include, but are not limited to: local and global political and
economic conditions; governmental and regulatory requirements and
actions by governmental authorities, including changes in
government policy, government ownership requirements, changes in
environmental, tax and other laws or regulations and the
interpretation thereof; developments with respect to the
coronavirus disease 2019 ("COVID-19") pandemic, including the
duration, severity and scope of the pandemic and potential impacts
on mining operations; risks associated with the merger transaction
with Alacer Gold Corp.; and other risk factors detailed from time
to time in our reports filed with the Canadian securities
regulatory authorities.
Forward-looking statements in this news release include
statements concerning, among other things: forecasts; outlook;
timing of production; our intention to return excess attributable
free cash flow to shareholders; future cash costs and AISC per
payable ounce of gold, silver and other metals sold; the prices of
gold, silver and other metals; our ability to discover new areas of
mineralization, to add Mineral Reserves and to define additional
Mineral Resources; the timing and extent of capital investment at
our operations; the timing and extent of capitalized stripping at
our operations; the timing of production and production levels;
higher processed grades at Çöpler; free cash flow generation
timing; the results of the 2020 Çöpler technical report, including
the timing and preliminary capital estimate for the proposed
flotation circuit, the impact of the proposed flotation circuit on
total sulfide plant throughput and gold production and the results
of production and exploration generally; the timing, focus and
results of our exploration and development programs; Çöpler
continuing to operate with limited impact from COVID-19, including
exploration activities continuing as planned; current financial
resources being sufficient to carry out plans, commitments and
business requirements for the next twelve months; movements in
commodity prices not impacting the value of any financial
instruments; estimated production rates for gold, silver and other
metals produced by us; the estimated cost of sustaining capital;
ongoing or future development plans and capital replacement;
estimates of expected or anticipated economic returns from our
mining projects, including future sales of metals, concentrate or
other products produced by us and the timing thereof; our plans and
expectations for our properties and operations; and all other
timing, exploration, development, operational, financial,
budgetary, economic, legal, social, environmental, regulatory, and
political matters that may influence or be influenced by future
events or conditions.
Such forward-looking information and statements are based on
a number of material factors and assumptions, including, but not
limited in any manner to, those disclosed in any other of our
filings, and include: the inherent speculative nature of
exploration results; the ability to explore; communications with
local stakeholders; maintaining community and governmental
relations; status of negotiations of joint ventures; weather
conditions at our operations; commodity prices; the ultimate
determination of and realization of Mineral Reserves; existence or
realization of Mineral Resources; the development approach;
availability and receipt of required approvals, titles, licenses
and permits; sufficient working capital to develop and operate the
mines and implement development plans; access to adequate services
and supplies; foreign currency exchange rates; interest rates;
access to capital markets and associated cost of funds;
availability of a qualified work force; ability to negotiate,
finalize, and execute relevant agreements; lack of social
opposition to our mines or facilities; lack of legal challenges
with respect to our properties; the timing and amount of future
production; the ability to meet production, cost, and capital
expenditure targets; timing and ability to produce studies and
analyses; capital and operating expenditures; economic conditions;
availability of sufficient financing; the ultimate ability to mine,
process, and sell mineral products on economically favorable terms;
and any and all other timing, exploration, development,
operational, financial, budgetary, economic, legal, social,
geopolitical, regulatory and political factors that may influence
future events or conditions. While we consider these factors and
assumptions to be reasonable based on information currently
available to us, they may prove to be incorrect.
You should not place undue reliance on forward-looking
information and statements. Forward-looking information and
statements are only predictions based on our current expectations
and our projections about future events. Actual results may vary
from such forward-looking information for a variety of reasons
including, but not limited to, risks and uncertainties disclosed in
our filings on our website at www.ssrmining.com, on SEDAR at
www.sedar.com, on EDGAR at www.sec.gov and on the ASX at
www.asx.com.au and other unforeseen events or circumstances. Other
than as required by law, we do not intend, and undertake no
obligation to update any forward-looking information to reflect,
among other things, new information or future events.
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.
Cautionary Note Regarding Non-GAAP Measures
This news release includes certain terms or performance
measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards ("IFRS"),
including free cash flow, cash costs and AISC per payable ounce of
gold and silver sold, and realized metal prices. Non-GAAP measures
do not have any standardized meaning prescribed under IFRS and,
therefore, they may not be comparable to similar measures employed
by other companies. We believe that, in addition to conventional
measures prepared in accordance with IFRS, certain investors use
this information to evaluate our performance. The data presented is
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Readers should refer
to our management's discussion and analysis, available under our
corporate profile at www.sedar.com or on our website at
www.ssrmining.com, under the heading "Non-GAAP Financial Measures"
for a more detailed discussion of how we calculate such measures
and a reconciliation of certain measures to GAAP terms.
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SOURCE SSR Mining Inc.