First Quarter 2017 Operating Highlights
- Consistent production scale: Produced 97,851 gold equivalent ounces from three operations in the first quarter of 2017.
- Gold production at Marigold to plan: Produced 55,215 ounces of gold during the first quarter of 2017.
- Robust gold production at Seabee: Achieved production of 21,023 ounces of gold in the first quarter of 2017 as higher grade ore was sourced from the Santoy mine.
- Strong operating fundamentals at Pirquitas: The operation concluded open pit mining in
January 2017 and commenced stockpile processing, taking quarterly production to 1.5 million ounces of silver. The mill continued to operate at a rate of approximately 5,000 tonnes per day, 25% above nominal throughput.
Marigold mine,
Q1 2017 |
Q4 2016 |
% Change 1 |
||
Total material mined |
kt |
16,736 |
19,559 |
(14.4%) |
Waste removed |
kt |
11,062 |
13,123 |
(15.7%) |
Ore to leach pad |
kt |
5,674 |
6,436 |
(11.8%) |
Strip ratio |
w/o |
1.95 |
2.04 |
(4.4%) |
Gold grade to leach pad |
g/t |
0.42 |
0.48 |
(12.5%) |
Gold recovery |
% |
74% |
75% |
(1.3%) |
Gold produced |
oz |
55,215 |
59,945 |
(7.9%) |
Gold sold |
oz |
52,528 |
61,308 |
(14.3%) |
Notes: |
1. Percent changes are calculated using rounded numbers presented in the table. |
In the first quarter of 2017, the Marigold mine produced 55,215 ounces of gold, in line with plan. Gold sales totaled 52,528 ounces for the quarter.
A total of 16.7 million tonnes were mined in the first quarter of 2017, 14% less than the fourth quarter of 2016, primarily due to weather-related impacts in January and February, which caused the open pit to cease operations intermittently due to unsafe work conditions. Additionally, the rope shovel was down for planned maintenance for five days during the month of March. Approximately 5.7 million tonnes of ore were delivered to the heap leach pads at an average gold grade of 0.42 g/t. This compares to 6.4 million tonnes of ore delivered to the heap leach pads at a gold grade of 0.48 g/t in the fourth quarter of 2016. Gold grade mined in the first quarter was 13% lower than the fourth quarter due to planned pit phase sequencing. The strip ratio declined to 1.95:1 in the quarter, a 4% reduction compared to the previous quarter.
Seabee Gold Operation,
Q1 2017 |
Q4 2016 |
% Change 1 |
||
Total ore milled |
t |
72,394 |
84,526 |
(14.4%) |
Ore milled per day |
t/day |
804 |
919 |
(12.5%) |
Gold mill feed grade |
g/t |
9.22 |
7.40 |
24.6% |
Gold recovery |
% |
97.7% |
97.0% |
0.7% |
Gold produced |
oz |
21,023 |
19,711 |
6.7% |
Gold sold |
oz |
22,411 |
17,229 |
30.1% |
Notes: |
1. Percent changes are calculated using rounded numbers presented in the table. |
In the first quarter of 2017, the Seabee Gold Operation produced 21,023 ounces of gold, a 7% increase from the 19,711 ounces of gold produced during the fourth quarter of 2016, primarily due to higher grade ore from the Santoy mine complex. Gold sales were 22,411 ounces for the quarter, including inventory carried over from the fourth quarter of 2016.
A total of 72,394 tonnes of ore was milled at an average gold grade of 9.22 g/t and recovery of 97.7% during the first quarter of 2017. This compares to a total of 84,526 tonnes of ore milled at an average gold grade of 7.40 g/t and recovery of 97.0% in the fourth quarter of 2016.
During the first quarter, the mill was maintained at a throughput of 804 tonnes per day, lower than the previous quarter as ore delivery constrained mill throughput due to ventilation system limitations. Additional fans and electrical equipment were delivered to the mine and are expected to be operational by mid-year. The Santoy mine complex supplied 98% of ore milled in the first quarter, predominantly from long hole stopes. We continue to develop new mine plans to determine a higher, sustainable production rate.
Pirquitas mine,
Q1 2017 |
Q4 2016 |
% Change 1 |
||
Total material mined |
kt |
89 |
1,694 |
(94.7%) |
Ore mined |
kt |
53 |
501 |
(89.4%) |
Silver mined grade |
g/t |
205 |
168 |
22.0% |
Ore milled |
kt |
449 |
476 |
(5.7%) |
Silver mill feed grade |
g/t |
145 |
194 |
(25.3%) |
Silver recovery |
% |
72.6% |
74.5% |
(2.6%) |
Silver produced |
koz |
1,520 |
2,210 |
(31.2%) |
Silver sold |
koz |
1,443 |
2,633 |
(45.2%) |
Notes: |
1. Percent changes are calculated using rounded numbers presented in the table. |
Mining from the San Miguel open pit ceased in
The operation produced a total of 1.5 million ounces of silver from ore mined and stockpiles processed. Silver sales were 1.4 million ounces for the quarter.
Ore was milled at an average rate of 4,994 tonnes per day in the fourth quarter, 25% above the mill's nominal throughput of 4,000 tonnes per day. Ore milled in the first quarter of 2017 contained an average silver grade of 145 g/t, 25% lower than the 194 g/t reported in the fourth quarter of 2016 as the majority of mill feed was sourced from medium grade stockpile ore. The jig circuit is not utilized to treat stockpile material. The average silver recovery in the first quarter was 72.6%, lower than the 74.5% recovery in the previous quarter, in line with reduced silver mill feed grade.
Qualified Persons
The scientific and technical data contained in this news release relating to the Marigold mine has been reviewed and approved by
About Silver Standard
Silver Standard is a Canadian-based precious metals producer with three wholly-owned and operated mines, including the Marigold gold mine in
For further information contact:
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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
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 complete and successfully integrate Golden Arrow Resources Corporation's (“Golden Arrow”)
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
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