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Marigold Life of Mine Plan Confirms Near-Term Production Growth
Jun. 19, 2018 08:52AM PST
Precious MetalsSSR Mining Inc. is pleased to report results of an updated life of mine plan for the Marigold mine in Nevada, US, evaluating a sustained mining rate from the additional haul trucks added in 2016 and 2018 as well as year-end 2017 mineral reserves, for over ten years of mining to 2028.
SSR Mining Inc. (TSX: SSRM, NASDAQ: SSRM)is pleased to report results of an updated life of mine plan for the Marigold mine in Nevada, US, evaluating a sustained mining rate from the additional haul trucks added in 2016 and 2018 as well as year-end 2017 mineral reserves, for over ten years of mining to 2028.
Highlights are as follows:
- Robust economics: After-tax net present value of US$552 million based on a US$1,300 per ounce gold price, a 5 percent discount rate and the 2017 year-end mineral reserves.
- Large gold reserve base in Nevada: Mineral reserves of 3.2 million ounces of gold for over ten years of mining to 2028 and gold production through to 2032.
- Near-term production growth: Average annual production for the period 2019 to 2020 increases to 218,000 ounces of gold, in-line with the 5-Year Outlook announced in 2016.
- Increased production scale: Average annual production is 236,000 ounces of gold in the first six years, with peak gold production of more than 265,000 ounces of gold in 2021 and 2022.
- Competitive life of mine cost position: Life of mine cash costs of US$730 per payable ounce of gold and all-in sustaining costs of US$966 per payable ounce of gold.
- Low capital intensity: Capital expenditures of US$284 million or US$120 per ounce of gold over the life of mine.
- Potential for further mine life extension: Incremental Indicated Mineral Resources of 2.5 million ounces of gold provides potential to extend mine life or increase annual production
Paul Benson, president & CEO, commented:
This life of mine plan builds on our exploration success and operational excellence track record at Marigold. Annual gold production is forecast to exceed 265,000 ounces in 2021 and 2022, a more than 30 percent increase over 2017. The new reserve supports mining for over 10 years and gold production for 15 years, with significant resources and exploration potential existing beyond the currently defined reserves.
Marigold opened in 1989 with an initial estimated eight-year mine life and next year celebrates its 30th year of continuous operation. We continue to invest in exploration at the site and expect to continue to increase reserves and resources.
Click here to read the full SSR Mining Inc. (TSX: SSRM, NASDAQ: SSRM) press release.
