Silver Standard provides Q2 2014 production results
VANCOUVER, July 9, 2014 /PRNewswire/ – Silver Standard Resources Inc. (NASDAQ:
SSRI) (TSX: SSO) (“Silver Standard”) provides its second quarter 2014
operational update for the Pirquitas mine in Jujuy, Argentina and the
Marigold mine in Nevada, U.S.
Second Quarter 2014 Operating Highlights:
-- Completed Marigold mine acquisition: Purchase of the Marigold mine completed on April 4, 2014. Mine operations are now fully integrated into Silver Standard.
-- Delivered strong silver and zinc production at Pirquitas: Produced 2.0 million ounces of silver and 9.3 million pounds of zinc, on track to deliver full year guidance. -- Exceeded gold production schedule at Marigold: Produced 22,060 ounces of gold, 10% higher than the second quarter guidance of 20,000 ounces.
“The second quarter of 2014 marks a new era for Silver Standard as a
multi-mine producer with the integration of our Marigold mine in Nevada
complete,” said John Smith, President and CEO. “Our focus at Marigold
is on developing our life of mine plan and implementing operational
changes to move material at the lowest cost. At Pirquitas, silver and
zinc production was delivered to schedule and we continue to focus on
cost management activities. Looking ahead, we are well positioned for
another strong year with both Pirquitas and Marigold delivering to plan
as we come into the second half of 2014.”
Pirquitas mine, Argentina
____________________________________________________________________ | | | Q2 2014 | Q1 2014 | % Change | |____________________________|________|_________|_________|__________| |Total material mined | kt | 4,052 | 4,208 | (3.7%)| |____________________________|________|_________|_________|__________| |Waste removed | kt | 3,550 | 3,840 | (7.6%)| |____________________________|________|_________|_________|__________| |Strip ratio | w/o | 7.1 | 10.4 | (31.7%)| |____________________________|________|_________|_________|__________| |Silver mined grade | g/t | 167 | 163 | 2.5% | |____________________________|________|_________|_________|__________| |Zinc mined grade | % | 2.07 | 1.94 | 6.7% | |____________________________|________|_________|_________|__________| |Ore milled | kt | 402 | 406 | (1.0%)| |____________________________|________|_________|_________|__________| |Silvermill feed grade | g/t | 213 | 204 | 4.4% | |____________________________|________|_________|_________|__________| |Zinc mill feed grade | % | 2.19 | 2.02 | 8.4% | |____________________________|________|_________|_________|__________| |Silver recovery | % | 74.3 | 72.1 | 3.1% | |____________________________|________|_________|_________|__________| |Zinc recovery (zinc | | 48 | 49 | (2.0%)| |concentrate) | % | | | | |____________________________|________|_________|_________|__________| |Silver produced |'000 oz | 2,042 | 1,918 | 6.5% | |____________________________|________|_________|_________|__________| |Zinc produced (zinc | | 9,319 | 8,844 | 5.4% | |concentrate) |'000 lbs| | | | |____________________________|________|_________|_________|__________| |Silver sold |'000 oz | 1,926 | 1,596 | 20.7% | |____________________________|________|_________|_________|__________| |Zinc sold (zinc concentrate)|'000 lbs| 5,307 | 10,227 | (48.1%)| |____________________________|________|_________|_________|__________|
Note: Percent changes are calculated using rounded numbers presented in the
The Pirquitas mine produced 2.0 million ounces of silver during the
second quarter of 2014, higher than the 1.9 million ounces produced in
the first quarter of 2014. The mine also produced 9.3 million pounds of
zinc in zinc concentrate in the second quarter. The quarter-on-quarter
increase in metal production is due to an increase in head grade as a
result of specific locations mined in accordance with our mine plan.
During the second quarter, we recognized sales of 1.9 million ounces of
silver and 5.3 million pounds of zinc. The decrease in zinc sales
reflects unusually high first quarter sales and timing of deliveries.
Approximately 402,000 tonnes of ore were milled during the second
quarter of 2014, compared to 406,000 tonnes in the first quarter. Ore
was milled at an average rate of 4,423 tonnes per day, 11% above the
mill’s nominal design. This compares to an average milling rate of
4,514 tonnes per day in the first quarter.
Ore milled during the second quarter contained an average silver grade
of 213 g/t, higher than the 204 g/t reported in the first quarter. The
average recovery rate for silver increased to 74.3% from 72.1% in the
previous quarter, due to accessing a greater proportion of fresh
sulphide ore in the pit.
Marigold mine, U.S.
______________________________________ | | | Q2 2014 | |_______________________|____|_________| |Total material mined | kt | 18,338 | |_______________________|____|_________| |Waste removed | kt | 15,986 | |_______________________|____|_________| |Strip ratio | w/o| 6.8 | |_______________________|____|_________| |Ore to leach pad | kt | 2,352 | |_______________________|____|_________| |Gold grade to leach pad|g/t | 0.34 | |_______________________|____|_________| |Gold recovery | % | 73% | |_______________________|____|_________| |Gold produced | oz | 22,060 | |_______________________|____|_________| |Gold sold | oz | 21,990 | |_______________________|____|_________|
Note: Data presented in this table is for the period April 1 to June 30, 2014,
the period for which Silver Standard was entitled to all economic
benefits of the Marigold mine per the Purchase and Sale Agreement dated
April 4, 2014.
On April 4, 2014 we completed the purchase of the Marigold mine in
Nevada, U.S. The integration of mine operations is complete and we have
concluded the transfer of all operating and administrative systems to
Silver Standard. We have begun the optimization process at Marigold and
have engaged USC Consulting Group, LP, the same advisor who assisted
with our restructuring program at the Pirquitas mine. We have commenced
the compliance requirements under National Instrument 43-101–Standards
of Disclosure for Mineral Projects (“NI 43-101″) for Mineral Resources
and Mineral Reserves, retaining respectively AMEC and Independent
Mining Consultants, Inc. to provide technical oversight. Detailed work
has commenced to define the most suitable strategic development plan
for Marigold within the prevailing market conditions.
During the second quarter of 2014, the Marigold mine produced 22,060
ounces of gold, exceeding our quarterly guidance by 10%. Gold sales
totaled 21,990 ounces for the quarter.
The majority of ore mined in the second quarter was from the lower grade
upper portions of the Mackay Phase 1 pit while less material was
sourced from the Target pit as we completed Phase 1. The mine moved a
total of 18.3 million tonnes of material, of which 2.4 million tonnes
of ore was delivered to the heap leach pads at a grade of 0.34 g/t
Second Quarter Earnings Release
Silver Standard plans to issue its second quarter earnings release on
Wednesday, August 6, 2014 after markets close.
The scientific and technical data contained in this news release
relating to the Pirquitas mine has been reviewed and approved by Trevor
J. Yeomans, B.Sc. (Hons), a Qualified Person under NI 43-101 and our
Director, Metallurgy. The scientific and technical data contained in
this news release relating to the Marigold mine has been reviewed and
approved by Thomas Rice, SME Registered Member, a Qualified Person
under NI 43-101 and our Technical Services Manager at the Marigold
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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, 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; political or economic instability and unexpected
regulatory changes; currency fluctuations; counterparty and market
risks related to the sale of our concentrates; governmental laws and
regulations, including health, safety and environmental laws and
regulations, increased costs and restrictions on operations due to
compliance with such regulations; unpredictable risks and hazards
related to the development and operation of a mine or mine property
that are beyond our control; compliance with anti-corruption laws and
increased regulatory compliance costs; title to our mineral properties
and the surface rights thereon; operational safety and security; our
ability to access, when required, mining equipment and services;
competition in the mining industry for properties; our ability to
attract and retain qualified personnel and management and potential
labour unrest; shortage or poor quality of equipment or supplies; 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 authorities.
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 and the
Marigold 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
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.