Silver Standard provides Q2 2013 operational results
VANCOUVER, July 11, 2013 /PRNewswire/ – Silver Standard Resources Inc. (NASDAQ:
SSRI, TSX: SSO) (the “Company”) provided a second quarter 2013
operational update for its Pirquitas mine in Jujuy, Argentina.
Second Quarter 2013 Operating Highlights:
-- Delivered silver production and sales to plan: Produced 1.9 million ounces of silver, in line with plan for the quarter and on track to achieve full year production guidance. Sold 2.2 million ounces of silver.
-- Produced record 5.6 million pounds of zinc: Second quarter zinc production represented a 68% quarter-on-quarter improvement due to higher zinc grades and plant recoveries.
-- Progressed San Miguel Phase 2 open pit transition: Positioning the Company to process higher grade material in the second half of 2013.
-- Delivered operating performance: Managed operating variation from blended ore mix to achieve mill performance of 4,009 tonnes per day, on average, consistent with nominal design.
“Pirquitas is advancing to schedule through the pit transition and,
despite the variability of feed to the mill, we achieved quarterly
production of 1.9 million ounces of silver,” said John Smith, President
and CEO. “As we progress, we will access higher grade sulphide ore,
supporting our forecast of stronger performance through the second half
of 2013. Concurrently, a formal restructuring program aimed at
reducing costs and increasing production recoveries is in progress. We
are focused on Pirquitas delivering through this part of the resource
Summary of Mine Operating Statistics
__________________________________________________________________ | | |Q2 2013|Q1 2013|% Change| |________________________________|________|_______|_______|________| |Total material mined | Kt | 4,471| 4,210| 6.2%| |________________________________|________|_______|_______|________| |Ore milled | Kt | 365| 396| (7.8%)| |________________________________|________|_______|_______|________| |Silver mill feed grade | g/t | 216| 207| 4.3%| |________________________________|________|_______|_______|________| |Zinc mill feed grade | % | 1.53| 0.92| 66.3%| |________________________________|________|_______|_______|________| |Silver recovery | % | 74.8| 76.3| (2.0%)| |________________________________|________|_______|_______|________| |Zinc recovery (zinc concentrate)| % | 46| 41| 12.2%| |________________________________|________|_______|_______|________| |Silver produced |'000 oz | 1,890| 2,017| (6.3%)| |________________________________|________|_______|_______|________| |Zinc produced (zinc concentrate)|'000 lbs| 5,589| 3,323| 68.2%| |________________________________|________|_______|_______|________| |Silver sold |'000 oz | 2,207| 2,018| 9.4%| |________________________________|________|_______|_______|________| |Zinc sold (zinc concentrate) |'000 lbs| 2,217| 2,147| 3.3%| |________________________________|________|_______|_______|________|
Note: Percent changes are calculated using the rounded numbers presented above.
The Pirquitas mine produced 1.9 million ounces of silver during the
second quarter of 2013, in line with expectations for the quarter but
down from the 2.0 million ounces produced in the first quarter of
2013. The sequential decline in silver production reflects planned
lower tonnage through the mill and lower plant recoveries due to the
nature of the transitional ore processed. The second quarter of 2013
was expected to be the most difficult quarter for the mine and stronger
results through the end of the year are forecast. In the first half of
2013, the mine produced 3.9 million ounces of silver, on track to
achieve production guidance for the year. The Company sold 2.2 million
ounces of silver during the second quarter, consistent with our plan to
match annualized production and sales.
The mine also produced 5.6 million pounds of zinc from zinc concentrate
in the second quarter, a 68% improvement quarter-on-quarter and the
highest quarterly production result in the history of the mine. This
record zinc production reflects higher zinc grades and plant recoveries
as the Company mined more of the zinc-rich Potosi area of the San
Miguel open pit.
Approximately 365,000 tonnes of ore were milled during the second
quarter of 2013, compared to 396,000 tonnes in the first quarter.
Contributing to this was the planned maintenance shutdown for ball mill
reline. Ore was milled at an average rate of 4,009 tonnes per day,
notwithstanding the variation in ore types as a result of the phase
transition in the open pit. This is in line with the plant’s nominal
design and compares to an average milling rate of 4,402 tonnes per day
in the first quarter. Ore milled contained an average silver grade of
216 g/t, 4% higher than the 207 g/t reported in the first quarter. The
average recovery rate for silver decreased to 74.8% from 76.3% in the
previous quarter, mainly due to more oxidized and transitional ore in
the mill feed. As Phase 2 of the San Miguel open pit deepens, the
proportion of oxide and transitional ore in the mill feed is expected
Second Quarter Earnings Release
The Company plans to issue its second quarter earnings release on
Wednesday, August 7, 2013 after markets close.
The scientific and technical data contained in this news release has
been reviewed and approved by the following Qualified Person (“QP”)
under National Instrument 43-101, who consents to having his name
included in this news release.
-- Andrew W. Sharp, BEng., FAusIMM: Mr. Andrew W. Sharp, who has been employed by the Company as Vice President, Technical Services since September 2011, is the QP responsible for the technical content of this news release.
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using the Silver Standard website at www.silverstandard.com.
Cautionary Note Regarding Forward-Looking Statements:
Statements in this news release are forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995 and forward-looking information within the meaning of Canadian
securities laws (collectively, “forward-looking statements”). 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
others, the higher grade material expected to be processed during Phase
2 of the San Miguel open pit. 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: uncertainty of production and
cost estimates for the Pirquitas mine; future development risks,
including start-up delays and operational issues; lack of suitable
infrastructure or damage to existing infrastructure; increased costs
and restrictions on operations due to compliance with environmental
laws and regulations; unpredictable risks and hazards related to the
development and operation of a mine or mine property that are beyond
the Company’s control; operational safety and security risks; and
political, financial, social, legal or economic developments or changes
in Argentina. See the Company’s most recent Form 40-F and Annual
Information Form filed with the U.S. Securities and Exchange Commission
and Canadian securities regulatory authorities for a discussion of
other risks and uncertainties that may affect the Company’s
The Company’s forward-looking statements are based on what the Company’s
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: the
Company’s ability to carry on its exploration and development
activities; the price of the minerals the Company produces; the costs
of operating and exploration expenditures; the Company’s ability to
operate in a safe, efficient and effective manner; the Company’s
ability to obtain financing as and when required and on reasonable
terms; and the Company’s ability to continue operating the Pirquitas
mine. The Company 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. The Company’s
forward-looking statements reflect current expectations regarding
future events and operating performance and speak only as of the date
hereof and the Company does 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.
W. John DeCooman, Jr.
Vice President, Business Development and Strategy
Silver Standard Resources Inc.
N.A. toll-free: (888) 338-0046
All others: (604) 689-3846
SOURCE Silver Standard Resources Inc.