SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") reports the results of a Preliminary Economic Assessment ("PEA") for the Seabee Gold Operation in Saskatchewan, Canada prepared with SRK Consulting (Canada) Inc. The PEA evaluates the expansion of the Seabee Gold Operation to a sustained mining and milling rate of 1,050 tonnes per day for a seven-year period.
Highlights of the Seabee Gold Operation PEA
(All financial results are in U.S. dollars unless otherwise noted)
- Near-term production growth: Estimated peak gold production of 120,000 ounces in 2020 is 55% higher than 2016 output.
- Expands operating margins: Estimated LOM cash costs of $548 per payable ounce of gold sold due to higher sustained throughput and an average mill feed grade of 8.51 g/t gold.
- Extends production profile to 2024: Estimated gold production averages 100,000 ounces per year over the period from 2018 to 2023, a 29% increase from 2016 production.
- Improves processing plant performance: Estimated mill production averages 1,050 tonnes per day beginning in 2019, a 21% increase to 2016 throughput, with a projected 96.5% recovery.
- Low capital investment: Development near existing infrastructure reduces projected total capex to $90 million, driving low AISC of $682 per payable ounce of gold sold.
Paul Benson, President and CEO said, "We acquired Claude Resources because we recognized Santoy was a high-quality orebody and we saw the potential for near-term production growth and improved margins, which this expansion plan confirms. At sub-$550 per ounce cash costs and peak annual gold production of over 120,000 ounces along with a production profile for at least another seven years estimated under the PEA, Seabee is firmly positioned as a key asset and significant cash flow generator in our portfolio. Underpinning our longer-term view, we believe that recent drilling success at Santoy, our large land position and our option on the Fisher property represent the potential for further mine life extension."
Source: SSR Mining
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