VANCOUVER (miningweekly.com) – Canadian precious metals producer Silver Standard Resources has updated the five-year production and cost profile of its Marigold mine, in Nevada, lifting output 20% over the 2014 technical report.
Since then, the company has completed an assay programme, re-assaying drill holes within the pit envelopes with historical zero grade reported assays. This has been successful in reclassifying waste material to lower-grade ore zones within the planned mining areas. As a result, the strip ratio over this five-year period is expected to average 2:1.
As a result of an expanded mine fleet, in addition to Silver Standard’s focus on operational excellence and the assay programme, the mine is expected to average 220 000 oz/y, producing between 200 000 oz/y and 240 000 oz/y of gold between 2017 and 2021.
Cash costs, including mining costs, processing costs, general and administrative costs and royalties, are expected to average about $700/oz of payable gold sold over the period, down from the 2014 estimate of about $762/oz.
The lower average cash costs per ounce of gold sold, relative to the 2014 technical report, is based on 20% higher gold output and productivity measures, which more than offset the costs associated with mining more tonnes and the longer haulage distances to the leach pads for the increased ore tonnes, the company advised.
The company acquired Marigold mine, which started production in 1988, from Barrick Gold, in November 2014, when Barrick started divesting its higher-cost operations in an effort to streamline its portfolio and cut debt.
The company said it expected to publish updated reserve and resource estimates for the mine in the first quarter of 2017. Silver Standard also noted that the outlook did not include any benefits from the Valmy land acquired last year, which has the potential to increase production through higher grades and lower costs owing to shorter haul distances.