Silver Standard Provides First Quarter 2014 Operational Results
VANCOUVER, April 9, 2014 /PRNewswire/ – Silver Standard Resources Inc. (NASDAQ:
SSRI) (TSX: SSO) (“Silver Standard”) provides its first quarter 2014
operational update for the Pirquitas mine in Jujuy, Argentina.
First Quarter 2014 Operating Highlights:
-- Reaffirmed production guidance:Produced 1.9 million ounces of silver and 8.8 million pounds of zinc, on track to meet production guidance for the year. -- Delivered consistent mine production: Mined 4.2 million tonnes of material during the first quarter, in line with budget expectations. -- Achieved steady mill throughput: Milled 4,514 tonnes per day on average during the first quarter,13% above nominal design. Silver mill grade of 204 grams per tonne, on average, and resultant silver recoveries of 72%, on average, impacted silver production.
“Operations were consistent with expectations as the first quarter at
Pirquitas is typically a below average quarter due to impacts of the
rainy season at site,” said John Smith, President and CEO. “Coming off
a strong fourth quarter, operating performance remained consistent
while lower grade stockpiles, accessed due to the weather impact,
supplemented mined ore feed. We continue to drive operational
effectiveness aimed at further improving margins with expected strong
performance at Pirquitas for the remainder of 2014, complemented by the
integration of Marigold operating results in the second quarter.”
Summary of Mine Operating Statistics
__________________________________________________________________ | | |Q1 2014|Q4 2013|% Change| |________________________________|________|_______|_______|________| |Total material mined | Kt | 4,208| 4,277| (1.6%)| |________________________________|________|_______|_______|________| |Ore milled | Kt | 406| 420| (3.3%)| |________________________________|________|_______|_______|________| |Silver mill feed grade | g/t | 204| 228| (10.5%)| |________________________________|________|_______|_______|________| |Zinc mill feed grade | % | 2.02| 2.12| (4.7%)| |________________________________|________|_______|_______|________| |Silver recovery | % | 72.2| 73.9| (2.3%)| |________________________________|________|_______|_______|________| |Zinc recovery (zinc concentrate)| % | 49| 53| (7.5%)| |________________________________|________|_______|_______|________| |Silver produced |'000 oz | 1,918| 2,281| (15.9%)| |________________________________|________|_______|_______|________| |Zinc produced (zinc concentrate)|'000 lbs| 8,844| 10,307| (14.2%)| |________________________________|________|_______|_______|________| |Silver sold |'000 oz | 1,467| 2,499| (41.3%)| |________________________________|________|_______|_______|________| |Zinc sold (zinc concentrate) |'000 lbs| 10,227| 14,208| (28.0%)| |________________________________|________|_______|_______|________|
Note: Percent changes are calculated using the rounded numbers presented
While lower than the fourth quarter of 2013, Pirquitas operational
results were consistent with the first quarter of 2013, reflecting
normal seasonal variations. The Pirquitas mine produced 1.9 million
ounces of silver during the first quarter of 2014, lower than the 2.2
million ounces produced in the fourth quarter of 2013. The mine also
produced 8.8 million pounds of zinc in zinc concentrate in the first
quarter. The quarter-on-quarter decline in production reflects an early
rainy season that maintained saturated conditions during the quarter.
This precluded us from accessing some planned ore locations. To
compensate for ore supply, we accessed lower grade material from
stockpiles, which affected the head grade. The oxidized nature of this
material also reduced the recovery rate. As the weather impact in the
first quarter was factored into planning, we reaffirm production
guidance for the full year.
During the first quarter, we recognized sales of 1.5 million ounces of
silver and 10.2 million pounds of zinc. Silver concentrate sales were
below production for the quarter as a function of shipment scheduling.
On an annual basis, it is expected that sales will match production.
Approximately 406,000 tonnes of ore were milled during the first quarter
of 2014, compared to 420,000 tonnes in the fourth quarter of 2013. Ore
was milled at an average rate of 4,514 tonnes per day, 13% above the
mill’s nominal design. This compares to an average milling rate of
4,567 tonnes per day in the fourth quarter.
Ore milled during the first quarter contained an average silver grade of
204 g/t, compared to 228 g/t reported in the fourth quarter of 2013.
The average recovery rate for silver decreased marginally to 72.2% from
73.9% in the previous quarter, mainly due to more oxidized ore in the
First Quarter Earnings Release
Silver Standard plans to issue its first quarter earnings release on
Thursday, May 8, 2014 after markets close.
The scientific and technical data contained in this news release has
been reviewed and approved by Andrew W. Sharp, B.Eng., FAusIMM, a
Qualified Person under National Instrument 43-101–Standards of
Disclosure for Mineral Projects and our Vice President, Technical
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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”) concerning
the anticipated developments in our operations in future periods, the
Marigold mine transaction and other events or conditions that may occur
or exist in the future. These statements relate to analyses and other
information that are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions of management. 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. These forward-looking statements are subject to a variety
of risks, uncertainties and other factors that could cause actual
events or results to differ from those expressed or implied, including,
without limitation, risks and uncertainties related to: production,
development plans and cost estimates for the Pirquitas mine and the
Marigold mine; future exploration and development; Mineral Reserves and
Mineral Resources estimates and our ability to extract mineralization
profitably and replace our Mineral Reserves; our ability to
successfully integrate the Marigold mine acquisition; our ability to
obtain adequate financing; fluctuations in exchange rates and in spot
and forward prices for silver, gold and base metals and certain other
commodities; counterparty and market risks related to the sale of our
concentrates; political, financial, social, legal or economic
developments or changes in any of the countries where we carry on
business; compliance with governmental laws and regulations, including
health, safety and environmental laws and regulations; title to our
mineral properties and the surface rights thereon; competition in the
mining industry and our ability to access mining services, properties,
equipment, qualified personnel and management; regulatory compliance
costs; unpredictable risks and hazards related to the development and
operation of a mine or mine property that are beyond our control;
operational safety and security; and those other various risks and
uncertainties identified under the heading “Risk Factors” in our most
recent Form 40-F and Annual Information Form filed with the U.S.
Securities and Exchange Commission and Canadian securities regulatory
Our forward-looking statements are based on what our management
currently considers to be reasonable assumptions, beliefs, expectations
and opinions and we cannot assure you that actual events, performance
or results will be consistent with these forward-looking statements.
Assumptions have been made regarding, among other things: our ability
to carry on our exploration and development activities; the timely
receipt of required approvals and permits; 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 Pirquitas mine. Our
forward-looking statements reflect current expectations regarding
future events and operating performance 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.
W. John DeCooman, Jr.
Vice President, Business Development and Strategy
Silver Standard Resources Inc.
N.A. toll-free: +1 (888) 338-0046
All others: +1 (604) 689-3846
SOURCE Silver Standard Resources Inc.