Silver Standard Reports First Quarter 2017 Production Results
Page 1
April 11, 2017 News Release 17–10
SILVER STANDARD REPORTS FIRST QUARTER 2017 PRODUCTION RESULTS
VANCOUVER, B.C. -- Silver Standard Resources Inc. (NASDAQ: SSRI) (TSX: SSO) (“Silver
Standard”) reports first quarter 2017 operating results at our three mines.
First Quarter 2017 Operating Highlights
Consistent production scale: Produced 97,851 gold equivalent ounces from three operations
in the first quarter of 2017.
Gold production at Marigold to plan: Produced 55,215 ounces of gold during the first quarter
of 2017.
Robust gold production at Seabee: Achieved production of 21,023 ounces of gold in the first
quarter of 2017 as higher grade ore was sourced from the Santoy mine.
Strong operating fundamentals at Pirquitas: The operation concluded open pit mining in
January 2017 and commenced stockpile processing, taking quarterly production to 1.5 million
ounces of silver. The mill continued to operat e at a rate of approximately 5,000 tonnes per
day, 25% above nominal throughput.
Paul Benson, President and CEO said, “Our produc tion of 97,851 gold equivalent ounces is a
strong start to the year, highlighted by Seabee continuing to demonstrate a capability to produce
above historical levels. The sustai ned contribution from all three of our assets was solidified by
our recent announcement to exercise our option on the Chinchillas project to extend the operating
life of Pirquitas. This, combined with our focus on safe production and operational excellence,
demonstrates the success of our strategy to cr eate value through internal and external
opportunities.”
Page 2
Marigold mine, U.S.
Q1 2017 Q4 2016 % Change 1
Total material mined kt 16,736 19,559 (14.4%)
Waste removed kt 11,062 13,123 (15.7%)
Ore to leach pad kt 5,674 6,436 (11.8%)
Strip ratio w/o 1.95 2.04 (4.4%)
Gold grade to leach pad g/t 0.42 0.48 (12.5%)
Gold recovery % 74% 75% (1.3%)
Gold produced oz 55,215 59,945 (7.9%)
Gold sold oz 52,528 61,308 (14.3%)
Notes:
1. Percent changes are calculated using rounded numbers presented in the table.
In the first quarter of 2017, the Marigold mine produced 55,215 ounces of gold, in line with plan.
Gold sales totaled 52,528 ounces for the quarter.
A total of 16.7 million tonnes were mined in the first quarter of 2017, 14% less than the fourth
quarter of 2016, primarily due to weather-related impacts in January and February, which caused
the open pit to cease operations intermittently du e to unsafe work conditions. Additionally, the
rope shovel was down for planned maintenance for five days during the month of March.
Approximately 5.7 million tonnes of ore were delivered to the heap leach pads at an average gold
grade of 0.42 g/t. This compares to 6.4 million tonnes of ore delivered to the heap leach pads at a
gold grade of 0.48 g/t in the fourth quarter of 2016. Gold grade mined in the first quarter was
13% lower than the fourth quarter due to planned pit phase sequencing. The strip ratio declined
to 1.95:1 in the quarter, a 4% reduction compared to the previous quarter.
Page 3
Seabee Gold Operation, Canada
Q1 2017 Q4 2016 % Change 1
Total ore milled t 72,394 84,526 (14.4%)
Ore milled per day t/day 804 919 (12.5%)
Gold mill feed grade g/t 9.22 7.40 24.6%
Gold recovery % 97.7% 97.0% 0.7%
Gold produced oz 21,023 19,711 6.7%
Gold sold oz 22,411 17,229 30.1%
Notes:
1. Percent changes are calculated using rounded numbers presented in the table.
In the first quarter of 2017, the Seabee Gold Operation produced 21,023 ounces of gold, a 7%
increase from the 19,711 ounces of gold produced during the fourth quar ter of 2016, primarily
due to higher grade ore from th e Santoy mine complex. Gold sales were 22,411 ounces for the
quarter, including inventory carried over from the fourth quarter of 2016.
A total of 72,394 tonnes of ore was milled at an average gold grade of 9.22 g/t and recovery of
97.7% during the first quarter of 2017. This compar es to a total of 84,526 tonnes of ore milled at
an average gold grade of 7.40 g/t and recovery of 97.0% in the fourth quarter of 2016.
During the first quarter, the mill was maintained at a throughput of 804 tonnes per day, lower
than the previous quarter as ore delivery constr ained mill throughput due to ventilation system
limitations. Additional fans and electrical equipment were delivered to the mine and are expected
to be operational by mid-year. The Santoy mine complex supplied 98% of ore milled in the first
quarter, predominantly from long hole stopes. We continue to develop new mine plans to
determine a higher, sustainable production rate.
Page 4
Pirquitas mine, Argentina
Q1 2017 Q4 2016 % Change 1
Total material mined kt 89 1,694 (94.7%)
Ore mined kt 53 501 (89.4%)
Silver mined grade g/t 205 168 22.0%
Ore milled kt 449 476 (5.7%)
Silver mill feed grade g/t 145 194 (25.3%)
Silver recovery % 72.6% 74.5% (2.6%)
Silver produced koz 1,520 2,210 (31.2%)
Silver sold koz 1,443 2,633 (45.2%)
Notes:
1. Percent changes are calculated using rounded numbers presented in the table.
Mining from the San Miguel op en pit ceased in January 2017 and medium grade stockpile
material is being processed through the plant. Lo wer grade stockpiles may be processed in late
2017, and potentially in early 2018, once the medium grade stockpiles have been consumed,
depending on prevailing economic conditions.
The operation produced a total of 1.5 million ou nces of silver from ore mined and stockpiles
processed. Silver sales were 1.4 million ounces for the quarter.
Ore was milled at an average rate of 4,994 tonnes per day in the fourth quarter, 25% above the
mill’s nominal throughput of 4,000 tonnes per day. Ore milled in the first quarter of 2017
contained an average silver grad e of 145 g/t, 25% lower than the 194 g/t reported in the fourth
quarter of 2016 as the majority of mill feed wa s sourced from medium grade stockpile ore. The
jig circuit is not utilized to treat stockpile material. The average silver recovery in the first quarter
was 72.6%, lower than the 74.5% recovery in the previous quarter, in line with reduced silver mill
feed grade.
Page 5
Qualified Persons
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 National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and
our Technical Services Manager at the Marigold mine. The scientific and technical data contained
in this news release relating to the Seabee Gold Operation has been reviewed and approved by
Cameron Chapman, P.Eng., a Qualified Person under NI 43-101 and General Manager at the
Seabee Gold Operation. The scientific and technica l data contained in this news release relating
to the Pirquitas mine has been reviewed and a pproved by Bruce Butcher, P.Eng., a Qualified
Person under NI 43-101 and our Director, Mine Planning.
About Silver Standard
Silver Standard is a Canadian-based precious me tals producer with three wholly-owned and
operated mines, including the Marigold gold mi ne 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 a portfolio of exploration properties in North and South
America. We are committed to delivering safe production through relentless emphasis on
Operational Excellence. We are also focused on growing production and Mineral Reserves
through the exploration and acquisition of a ssets for accretive growth, while maintaining
financial strength.
SOURCE: Silver Standard Resources Inc.
For further information contact:
W. John DeCooman, Jr.
Vice President, Business Development and Strategy
Silver Standard Resources Inc.
Vancouver, BC
N.A. toll-free: +1 (888) 338-0046
All others: +1 (604) 689-3846
E-Mail: [email protected]
To receive Silver Standard’s news releases by e-mail, please register using the Silver Standard website at
www.silverstandard.com.
Cautionary Note Regarding Forward-Looking Statements:
This news release contains forward-looking information within the meaning of Canadian securities laws and forward-
looking statements within the meaning of the U.S. Private Securities Litigati on Reform Act of 1995 (collectively,
“forward-looking statements”). All stat ements, other than statements of hi storical fact, are forward-looking
statements. 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,”
“believes,” or variations thereof, or stating that certain actions, events or results “may,” “could,” “would,” “might”
or “will” be taken, occur or be achiev ed, or the negative of an y of these terms or simila r expressions. The forward-
looking statements in this news release relate to, among other things: future producti on of gold, silver and other
metals; expected exploration and development expenditures; the prices of gold, silver and other metals; the timing of
cessation of San Miguel open pit mining activities and stockpile processing at the Pirquitas mine; the effects of laws,
regulations and government policies affecting our operati ons or potential future operations; future successful
development of our projects; the sufficie ncy of our current working capital, anticipated operating cash flow or our
ability to raise necessary funds; estimated production rates for gold, silver and other metals produced by us; timing of
Page 6
production at the Marigold mine, the Seabee Gold Operation and the Pirquitas mine; the estimated cost of sustaining
capital; ongoing or future development plans and capital replacement, improvement or remediation programs; the
estimates of expected or anticipated economic returns from our mining projects, including future sales of metals,
concentrate or other products produced by us; our ability to expand Mineral Resources and convert Mineral Resources
into Mineral Reserves; and our plans and expectations for our properties and operations.
These forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors
that could cause actual events or results to differ from th ose expressed or implied, including, without limitation, the
following: uncertainty of production, development plans an d cost estimates for the Marigold mine, the Seabee Gold
Operation, the Pirquitas mine and our projects; our ability to replace Mineral Reserves; our ability to complete and
successfully integrate Golden Arrow Resources Corporatio n’s (“Golden Arrow”) Chinchillas project, on a joint
venture basis, into our current operations; ability to obta in necessary permits for the Chinchillas project; ability to
satisfy closing conditions and successfully form the joint venture with Golden Arrow; commodity price fluctuations;
political or economic instabilit y and unexpected regulatory changes; curren cy fluctuations; the possibility of future
losses; general economic conditions; fully realizing the value of our shareholdings in Pretium Resources Inc. and our
other marketable securities, due to changes in price, liquidity or disposal cost of such marketable securities; export
duty and related interest on past production and sales of silver concentrate from the Pirquitas mine; counterparty and
market risks related to the sale of our concentrate and me tals; uncertainty in the accuracy of Mineral Reserves and
Mineral Resources estimates and in our ability to extract mineralization profitably; differences in U.S. and Canadian
practices for reporting Mineral Reserves and Mineral Resources; lack of suitable infrastructure or damage to existing
infrastructure; future development risks, including start-up delays and cost overruns; our ability to obtain adequate
financing for further exploration and development programs and opportunities; uncertainty in acquiring additional
commercially mineable mineral rights; delays in obtaining or failure to obtain governmental permits, or non-
compliance with our permits; our ability to attract and retain qualified personnel and management; potential labour
unrest, including labour actions by our unionized employ ees at the Pirquitas mine; the impact of governmental
regulations, including health, safety an d environmental regulations, including increased costs and restrictions on
operations due to compliance with such regulations; reclamation and closure requirements for our mineral properties;
social and economic changes following closure of a mine, in cluding the anticipated closure of the Pirquitas mine in
late 2017 or early 2018, may lead to adverse impacts an d unrest; unpredictable risks and hazards related to the
development and operation of a mine or mineral property that are beyond our control; indigenous peoples’ title claims
and rights to consultation and accommodation may affect our existing operations as well as development projects and
future acquisitions; assessments by taxation authorities in multiple juri sdictions; recoverability of value added tax
and significant delays in the collection process in Argentina; claims and legal proceedings, including adverse rulings
in litigation against us and/or our direc tors or officers; compliance with anti-c orruption laws and internal controls,
and increased regulatory compliance costs; complying with emerging climate change regulations and the impact of
climate change; fully realizing our interest in deferred consideration received in connection with recent divestitures;
uncertainties related to title to our mineral properties and the ability to obtain surface rights; the sufficiency of our
insurance coverage; civil disobedience in the countries whe re our mineral properties are located; operational safety
and security risks; actions required to be taken by us under human rights law; competition in the mining industry for
mineral properties; our ability to comple te and successfully integrate an announc ed acquisition; an event of default
under our convertible notes may significantly reduce our liquidity and adversely affect our business; failure to meet
covenants under our senior secured revolving credit facility; conflicts of interest that could arise from certain of our
directors’ and officers’ involvement with other natural resource companies; information systems security threats; and
those various risks and uncertainties identified under the heading "Risk Fa ctors" in our most recent Annual
Information Form filed with the Canadian securities regulatory authorities and included in our most recent Annual
Report on Form 40-F filed with the U.S. Securities and Exchange Commission (“SEC”).
This list is not exhaustive of the factors that may affect any of our forward-looking statements. Our forward-looking
statements are based on what our management considers to be reasonable assumptions, beliefs, expectations and
opinions based on the information currently available to it. Assumptions have been made regarding, among other
things, our ability to carry on our exploration and develo pment activities, our ability to meet our obligations under
our property agreements, the timing and results of drilling programs, the discovery of Mineral Resources and Mineral
Reserves on our mineral properties, the timely receipt of required approvals and permits, including those approvals
and permits required for successful project permitting, cons truction and operation of our projects, 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 reasona ble terms and our ability to
continue operating the Marigold mine, the Seabee Gold Operation and the Pirquitas mine. You are cautioned that the
Page 7
foregoing list is not exhaustive of all factors and assumptions which may have been used. We cannot assure you that
actual events, performance or results w ill be consistent with these forward- looking statements, and management’s
assumptions may prove to be incorrect. Our forward-looking statements reflect current expectations regarding future
events and operating performance and speak only as of the date hereof 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 fo rth above, you should not place undue reliance on forward-
looking statements.
Cautionary Note to U.S. Investors
This news release includes Mineral Reserves and Mineral Resources classification terms that comply with reporting
standards in Canada and the Mineral Reserves and the Mineral Resources estimates are made in accordance with NI
43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all
public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards
differ significantly from the requirements of the SEC set out in SEC Industry Guide 7. Consequently, Mineral
Reserves and Mineral Resources information included in this news release is not comparable to similar information
that would generally be disclosed by domestic U.S. repo rting companies subject to the reporting and disclosure
requirements of the SEC. Under SEC st andards, mineralization may not be classified as a “reserve” unless the
determination has been made that the mineralization could be economically produced or extracted at the time the
reserve determination is made. Moreover, the requirements of NI 43-101 for iden tification of “reserves” are also not
the same as those of the SEC, and reserves reported by us in compliance with NI 43-101 may not qualify as “reserves”
under SEC standards. Accordingly, information concerning mineral deposits set forth herein may not be comparable
with information made public by companies that report in accordance with U.S. standards.