Silver Standard Reports Expanded Exploration Program
VANCOUVER - Silver Standard Resources Inc. provides an exploration update for recent Mineral Resource development activities at its Marigold mine in Nevada.
Highlights: Mineral Resource development drilling at 8 South pit area extends higher-grade gold mineralization. Drillhole MR-6034 intersected 2.48 grams per tonne gold over 91.4 meters from 140.2 meters below surface, as previously reported; Mineral Resource development drilling identified a new mineralized structure northwest of the 8 South pit. Drillhole MRA-6104 intersected 1.18 grams per tonne gold over 56.4 meters from 221.0 meters below surface; The company completed assay program of historical drillholes to increase Mineral Resources and Mineral Reserves estimates for the Mackay Phase 3 pit. Results are expected in the third quarter of 2015. The assay program for the remaining life of mine is ongoing and results will be reported in 2015 and 2016 as they become available.
"Exploration results are adding real value at Marigold beyond what we initially expected," said John Smith, President and CEO. "With above reserve grade intercepts and a new gold structure to the northwest of the 8 South pit area, we continue to improve our understanding of the mineralization and increase opportunity for the future at Marigold. Marigold has a history of positive ore reconciliation. In order to investigate the cause of such results, we initiated an operational excellence program in January 2015. The program reanalyzed select samples from drillholes completed prior to 2008 that were assigned assay values of "zero" in the geological database and that are within the current mine plan. The program is intended to improve our Mineral Resources model to incorporate results from samples that, at the time, were below the historical cut-off grade of the analytical method used. Initial results indicate that there are numerous historical drill intercepts with gold values above the current 0.065 grams per tonne payable gold cut-off grade when assayed with a current analytical method. With the reanalysis incorporated into our Mineral Resources model, it is expected that areas currently classified as waste can be converted to ore, thereby increasing Mineral Resources and Mineral Reserves estimates for Marigold.
Smith said, In the first half of 2015, 34,926 drill samples were sent to American Assays Laboratories in Sparks, Nevada, which is independent from Silver Standard, for assaying and 21,436 results have been received in relation to the Mackay Phase 3 area as of June 30, 2015. We are continuing with the assay program with an additional 65,000 historic drill samples to be assayed during the second half of 2015 for a total of 99,926 drill samples within areas planned to be mined over the next four years. This assay program is expected to be completed by the end of 2016 with a further 90,000 samples assayed, which will cover the remaining production years through the planned Marigold life of mine.
The 2015 Mineral Resources development program for Marigold is targeting the discovery and development of gold mineralization proximal to the open pits, following a successful drilling campaign in the fourth quarter of 2014. The primary objective of the program is to upgrade Inferred Mineral Resources to Indicated Mineral Resources and to convert Mineral Resources to Mineral Reserves. As of June 30, 2015 a total of 113 reverse circulation and sonic drillholes have been completed, for a total of 26,066 meters. Approximately 95% of the drillholes, for which assay results have been received, intercepted gold mineralization exceeding the Mineral Resources cut-off grade of 0.065 grams per tonne payable gold and thickness criteria.
Mineralization within the 8 South pit extension area (8SX), previously reported, continues to expand with additional drilling. Another zone of higher grade mineralization has also been delineated to the northwest of 8SX, known as the 8D area. Refer to Figure 1 for the location of all drill collars. Selected results from 13 drillholes with higher-grade gold intercepts are included in Table 1 and labeled in Figure 1. A complete list of the drill assay results received in the first half of 2015 for the Marigold exploration drill program is included in.
Smith said, We expect to complete the drill program and modeling of the 8SX mineralization through the second half of 2015. The drilling program is expected to be comprised of an additional 9,100 meters of drilling in 35 reverse circulation holes and 3,800 meters of sonic drilling of rock stockpiles. Drilling continues on the deep sulphide exploration program with two additional core holes planned for the second half of 2015 to test permissive rock units discovered in the initial phase of drilling for sulphide and carbonate-hosted, high-grade gold mineralization.