Silver Standard Reports Number Of Production Records At Operations
VANCOUVER, Oct. 12, 2016 /CNW/ - Silver Standard Resources Inc. (NASDAQ: SSRI) (TSX: SSO) ("Silver Standard") provides its third quarter 2016 operational results.
Operating Highlights: Demonstrated scale from three operations: Record quarterly production of 112,559 gold equivalent ounces; Strong gold production at the Seabee Gold Operation: Produced 20,142 ounces of gold in the third quarter, positioning the mine to meet the upper end of production guidance; Commenced Operational Excellence program at Seabee: Milled 900 tonnes per day during the third quarter, including a successful trial of approximately 1,000 tonnes per day in August 2016; Record quarterly silver production at Pirquitas: Produced 3.0 million ounces of silver, 21% higher than the second quarter of 2016, as we milled more ore tonnes and achieved higher silver mill feed grade and recovery, on track to meet the upper end of production guidance; Strong operating fundamentals at Pirquitas: Achieved record quarterly milling rate of 4,946 tonnes per day in the third quarter, including over 5,200 tonnes per day in August 2016; Gold production on track at Marigold: Produced 47,456 ounces of gold during the third quarter of 2016, with expected strong fourth quarter production results, on track to meet guidance; and Increased total material mined at Marigold: Mined 19.6 million tonnes during the quarter reflecting increased haul truck capacity.
Paul Benson, President and CEO said, "This was a strong quarter with a number of production records. Our three mines delivered impressive operating results and record quarterly gold equivalent production, reflecting the addition of a full quarter gold production from Seabee and record silver production at Pirquitas with another solid quarter from Marigold. Pleasingly, we were able to start our Operational Excellence program at Seabee and saw some immediate results. With Seabee integrated into Silver Standard, our portfolio is showing our strength as a high-quality intermediate producer with scale and margin. We continue to focus on creating shareholder value through operational excellence, exploration for mine life extension and disciplined growth."
Marigold mine, U.S.
The Marigold mine produced 47,456 ounces of gold in the third quarter of 2016, in line with our second quarter gold production and on target to meet previously increased annual guidance. The construction of a new leach pad was completed on schedule and under budget in the latter half of the third quarter. The additional leach pad capacity and higher amount of ore tonnes stacked earlier in the year are expected to result in a strong fourth quarter gold production. We recognized sales of 47,278 ounces of gold in the third quarter of 2016.
A total of 19.6 million tonnes was mined during the quarter, five per cent higher than the second quarter of 2016, due to increased hauling capacity added to the fleet earlier in the year. Approximately 4.8 million tonnes of ore were delivered to the leach pads at a gold grade of 0.42 g/t, containing approximately 47,000 recoverable ounces of gold stacked during the quarter. The strip ratio increased to 3.1:1 in the third quarter as we began stripping of the next Mackay pit phase. Gold recovery was 71% in the third quarter.
The Seabee Gold Operation consists of the Seabee and Santoy underground mines, both of which feed a single processing facility. The operation produced 20,142 ounces of gold during the quarter that included a three-day, unplanned power outage. The Seabee Gold Operation is on track to meet the upper end of annual production guidance as disclosed by Claude Resources in its news release dated May 5, 2016. Gold sales were 21,911 ounces in the third quarter of 2016.
As part of our initial Operational Excellence plan for the Seabee Gold Operation, we successfully tested higher mill throughput during the month of August. The mill processed ore at or above 1,000 tonnes per day, with an average of 998 tonnes per day for the month of August. We achieved this with minor modifications to the processing facility, while maintaining gold recovery. As a result, we were able to increase throughput in the third quarter by 15% to 900 tonnes per day, compared to the second quarter of 2016. We are reviewing the long term mine plan to determine the feasibility of higher, sustainable throughput rates. A total of 82,756 tonnes of ore were milled at an average gold grade of 7.40 g/t and gold recovery of 96.5%.
The Pirquitas mine produced 3.0 million ounces of silver during the third quarter of 2016, a quarterly record for the mine, which is well-positioned to meet the upper end of production guidance. Higher silver production is a result of more ore tonnes milled, higher silver mill feed grade and higher silver recovery. We recognized sales of 2.8 million ounces of silver in the third quarter of 2016.
Ore was milled at an average rate of 4,946 tonnes per day in the third quarter. During August 2016, the mill operated at an average rate of over 5,200 tonnes per day, a record for the mill since it began operating, a result of one of our ongoing Operational Excellence programs initiated in the fourth quarter of 2015. Ore milled contained an average silver grade of 264 g/t, 11% higher than the 238 g/t reported in the second quarter. We continued to encounter additional tonnes of higher grade ore, relative to the production model, in the lower benches of the San Miguel open pit. Detailed planning and consultation for the cessation of open pit mining in early 2017 is well underway. Thereafter medium and low grade stockpile material will be processed through the plant in 2017.
Silver Standard is a Canadian-based precious metals producer with three wholly-owned and operated mines, including the Marigold gold mine in Nevada, U.S., the Seabee Gold Operation in Saskatchewan, Canada and the Pirquitas silver mine in Jujuy Province, Argentina. We also have two feasibility stage projects and an extensive portfolio of exploration properties throughout North and South America.