Ssr Mining Provides July 2019 Exploration Update
News Release 19-17
SSR Mining Inc. PHONE +1 604.689.3846 Suite 800 - 1055 Dunsmuir Street
www.ssrmining.com TOLL FREE +1 888.338.0046 PO Box 49088
Vancouver, BC, Canada V7X 1G4
July 30, 2019
SSR MINING PROVIDES JULY 2019 EXPLORATION UPDATE
VANCOUVER, B.C. – SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) provides
an update on its expl oration activities and results at its Marigold mine in Nevada, U.S., Seabee
Gold Operation in Saskatchewan, Canada and Pitarrilla project in Durango, Mexico for the period
from October 1, 2018 to May 31, 2019 (the “Exploration Period”).
Paul Benson, President and CEO said, “Over recent years, we have continued to invest in our
business, even in times of depressed precious metals prices. We are seeing the benefits of that
investment now as we enter a period of anticipated increasing production, declining cash costs
and continued exploration success.
I am pleased to report that the exploration and technical work at Red Dot , at the Marigold mine,
has provided increased confidence in the deposit ’s economics based on current assumptions ,
which include a gold price of $1 ,250 per ounce . Positively, we do not need to invest mining
expansion capital considered in the Marigold Equipment Replacement Study to support Red Dot
economics. Red Dot production is expected to be added to the current mine pla n extending
Marigold’s life into the early 2030’s . We continue drilling at Marigold and expect to commence
soon an exploration program at the recently-acquired properties to the south of the mine. As a
result, we expect to further grow Marigold’s Mineral Reserves and Resources in years to come.
We have also had success at Seabee with exciting results in our Santoy Gap Hanging Wall area.
We continue both infill and step out drilling and expect Santoy Gap Hanging Wall to extend the
Seabee mine life. Finally, we are also announcing works aimed at expanding the Pitarrilla high
grade zone, with the objective to improve the economics of that project to a double -digit IRR at
spot silver price.”
Highlights:
▪ Successful Red Dot exploration program provides opportunity to extend Marigold mine life.
▪ Exploration success in 2019: Exploration drilling in 2018 and geotechnical drilling and
engineering completed in 2019 support the conversion of Red Dot Mineral Resources.
▪ Marigold mine life extension: We expect Red Dot to extend the current Marigold life of
mine plan into the early 2030’s without the need for expansion capital.
▪ Mineral Reserves additions: We expect to report conversion of Red Dot Phases 2 and
3 Mineral Resources at year-end 2019, complementing the reported 350,000 ounces of
gold Mineral Reserves at Red Dot, referred to as Phase 1, in our year-end 2018 Mineral
Reserves and Mineral Resources estimate.
SSR Mining Inc.
PAGE 2
▪ Focus on Mineral Resources expansion: Exploration and p ermitting activities are
underway at North and South Red Dot, Valmy, East Basalt and Trenton Canyon areas
aimed at extending known mineralization and discovery during 2019 and beyond.
▪ Also, at Marigold, infill drill results for the Mackay pit and the North and South Red Dot areas
are expected to add to existing Mineral Reserves and Mineral Resources at year-end 2019.
Drill results include:
▪ At the Mackay pit, drillhole MRA6915 intersected 1.03 g/t gold over 19.8 meters from 75
meters;
▪ At North Red Dot, drillhole MRA6790 intersected 5.02 g/t gold over 53.3 meters from 319
meters, including 12.53 g/t gold over 19.8 meters from 352 meters; and
▪ At South Red Dot, drillhole MRA6929 intersected 1.70 g/t gold over 47.2 meters from 213
meters, including 3.36 g/t gold over 16.8 meters from 218 meters.
▪ At the Seabee Gold Operation, brownfield drill results for the Santoy Gap Hanging Wall are
expected to increase Mineral Resources at year-end. Drill results include:
▪ Drillhole SUG-19-601 intersected 7.01 g/t gold over 18.2 meters true width; and
▪ Drillhole SUG-18-636 intersected 9.96 g/t gold over 10.7 meters true width.
▪ Greenfields exploration at the Seabee Gold Operation and Fisher property intersected new
mineralized zones at the Batman Lake and Mac targets, respectively, where we are targeting
new gold discoveries. Drill results include:
▪ At the Batman Lake target, drillhole BAT-19-001 intersected 6.28 g/t gold over 1.5 meters
intersected width; and
▪ At the Mac target, drillhole FIS-19-035 intersected 7.31 g/t gold over 1. 6 meters
intersected width and 3.76 g/t gold over 4.2 meters intersected width, including 13.72 g/t
gold over 0.7 meters intersected width.
▪ At the Pitarrilla project, we are reviewing drill programs and engineering studies to identify
additional zones and continuity of high grade Mineral Resources with the potential to improve
project economics based on current metal prices.
▪ We are evaluating contractors to extend the existing underground access and drill these
areas. If approved, drilling is anticipated to commence in the second half of 2020.
SSR Mining Inc.
PAGE 3
Marigold mine, U.S.
During the fourth quarter of 2018, drilling focused on converting Inferred Mineral Resources and
adding to Mineral Resources in the Mackay pit, while drilling during 2019 has focused on
increasing Mineral Resources and Mineral Reserves in the Mackay pit and the North and South
extensions of Red Dot. A total of 68,965 meters was drilled during the Exploration Period. The
drill program included three core holes as part of the geotechnical study for the Red Dot pit
designs and nine core holes for quality control within the Red Dot deposit.
During 2019, we have received results from 98 drillholes, which, combined with the drill program
completed in 2018, are expected to further expand Mineral Reserves and add to Mineral
Resources at Red Dot at year-end 2019.
Drilling locations at Marigold for the Exploration Period are shown in Figure 1, with highlighted
results illustrated in the east-west cross-section in Figure 2 and the north -south longitudinal
section in Figure 3 . Table 1 lists selected drill results for the Exploration Period, while Table 2
provides the collar coordinates and drillhole lengths.
In 2018 and 2019 , we acquired four parcels totaling 130 hectares of land located within the
Marigold mine land package, as stated in our news release dated June 27, 2019 . One of these
parcels is located near South Red Dot, as shown in Figure 1. During the Exploration Period, we
intersected higher grade mineralization at South Red Dot (see Figure 3), indicating the
prospectivity of this land parcel and its potential to inc rease our Mineral Resources estimate at
Marigold at year-end 2019.
The Red Dot area contained a Mineral Resources estimate as outlined in our year -end 2017
Mineral Reserves and Mineral Resources estimate (see news release dated February 22, 2018)
but did not demonstrate economic viability utilizing a $1,250 per ounce of gold price. As a result,
in 2018, we initiated an extensive drill program at the Red Dot area with the goals of upgrading
Mineral Resources to Mineral Reserves and increasing the amount of contained gold by improving
our geological understanding and defining higher-grade structures at this area. The 2018 Red Dot
area drill program was successful in that it achieved, in part, our goal of converting Red Dot
Mineral Resources by adding 350,000 ounces of gold to Mineral Reserves as reported in our
year-end 2018 Mineral Reserves and Mineral Resources estimate (see news release dated
February 21, 2019), which we refer to as Red Dot Phase 1.
During the first half of 2019, the Red Dot exploration p rogram focused on geotechnical drilling
and engineering with the goal of declaring additional Mineral Reserves at Red Dot. We also
completed preliminary pit designs and related economic evaluations referred to as the Marigold
Equipment Replacement Study. T hese evaluations were completed with strict economic return
and investment thresholds and were based on current assumptions, which include a gold price of
$1,250 per ounce. Red Dot is anticipated to extend the Marigold mine life into the early 2030’s,
without requiring expansion of the mining fleet or the associated expansion capital.
Exploration and permitting activities are currently underway in the Mackay pit, North and South
Red Dot, Valmy, East Basalt and the newly-acquired Trenton Canyon areas, aimed at extending
known gold mineralization and discovery during 2019 and beyond. We expect to commence the
first phase of our exploration program at the Trenton Canyon property, which lies immediately
south of Marigold, in the third quarter of 2019.
SSR Mining Inc.
PAGE 4
Seabee Gold Operation, Canada
At the Santoy mine complex, drilling throughout the Exploration Period f ocused on increasing
Mineral Resources and defining Mineral Reserves at the Santoy Gap Hanging Wall (“Gap HW”),
Santoy 8A and Santoy 9A and 9C zones. Greenfields exploration activities at the Seabee Gold
Operation and Fisher property are focused on targeting new gold discoveries at the Batman Lake
and Mac areas, respectively. Over the Exploration Period, 190 drillholes totaling 75,921 meters
of core drilling were completed from underground and surface programs at the properties .
Underground and surface exploration is on-going.
The Gap HW drill program has realized consistent positive results from areas up and down plunge
from the initial Inferred Mineral Resource s outlined at year-end 2018. The Gap HW Mineral
Resources are located within 250 meters of Santoy 9 mineralization and extend parallel to the
Santoy decline for approximately 300 meters. Currently, the mineralized structure demonstrates
a plunge length of 1,200 meters associated with a folded granodiorite sill. As of the end of the
Exploration Period, we have completed 77 drillholes at Gap HW , with 44 drillholes containing
resource widths and grades of more than 3 g/t gold o ver 3 meters. Once compiled, we expect
these results to add Mineral Resources at Santoy at year-end 2019. Highlighted drill results are
shown in a longitudinal section of the Santoy mine complex in Figure 4 and a cross-section of the
Gap HW in Figure 5. Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.
During the Exploration Period, we completed 36 drillholes at Santoy 8A and 33 drillholes at Santoy
9, which aided in converting Inferred Mineral Resources to Mineral Reserves at year-end 2018.
Our 2019 exploration program aims to increase Inferred Mineral Resources in these areas.
At the Batman Lake area, located 800 meters south of the Santoy mine, we completed four
drillholes totaling 1,062 meters during the Exploration Period, of which three drillholes intersected
a new mineralized area called the Riddler zone. This zone, averaging four meters of intercepted
width, contained visible gold and exhibits plunge continuity of nearly 400 meters from 100 meters
below surface. The best intercept returned 6.28 g/t gold over 1.5 meters in drillhole BAT-19-001
and demonstrates additional exploration potential within 800 meters of the Santoy mine complex,
with additional drilling planned to investigate this mineralization, which remains open at depth.
At the Fisher project , our objective is to discover a new zone with potential for Inferred Mineral
Resources. Work during the fourth quarter of 2018 focused on the Mac target, where we
completed a drill program including ten drillholes totaling 3,552 meters. During 2019, at the Fisher
project we have completed 20 drillholes totaling 7,640 meters, including a further seven drillholes
and 3,522 meters at the Mac target. The program was successful in intersecting gold
mineralization at the Mac vein in five drillholes with an average drilled width of two meters. Hole
FIS-19-035 intercepted 3.76 g/t gold over 4.2 meters , representing the first occurrence at the
Fisher project of mineable width and above cut-off grade gold mineralization.
Next exploration steps at the Seabee Gold Operation include completing exploration for additional
Inferred Mineral Resources up and dow n plunge from the existing Gap HW Inferred Mineral
Resources. We expect to evaluate Gap HW mining alternatives during 2020. Field programs
targeting greenfields discovery are underway at the Seabee Gold Operation and Fisher property.
Table 3 lists selected drill results at the Santoy mine complex and the Batman Lake and Fisher
project areas for the Exploration Period.
SSR Mining Inc.
PAGE 5
Pitarrilla Project, Mexico
The Pitarrilla project was the subject of a feasibility study completed in 2012. The feasibility study
contemplated an open pit mine and capital intensive processing facilities capable of recovering
silver and base metals from surface oxides, transition zone and deeper sulphide Mineral
Resources using a long-term silver price of $25 per ounce.
In 2018, we evaluated a smaller scale, underground mine alternative , targeting higher -grade
sulphide Mineral Resources using prevailing metals prices and lower capital, aligned with the
reduced scope . While this evaluation r esulted in a modest, positive return, our minimum
investment criteria were not satisfied. However, the 2018 underground mine evaluation indicated
that there is potential to increase the sulphide mineralization tonnage and metal grade s for
improved project economics with additional exploration activities. This is a result of moderately-
spaced vertical exploration holes associated with the 2012 open pit mine scenario and sub -
vertical structures controlling the higher-grade sulphide mineralization.
During the second quarter of 2019, we requested proposals from contractors to extend an existing
exploration decline approximately 850 meters allowing for an in-fill drilling program of the Pitarrilla
project sulphide Mineral Resources over an 18-month time period. We are in the process of
evaluating and selecting a contractor to ac cess and drill these Mineral Resources . If approved,
drilling is expected to commence in the second half of 2020.
A c ross-section for the proposed exploration drill program at the Pitarrilla project is shown in
Figure 6.
SSR Mining Inc.
PAGE 6
Figure 1. Drillhole location plan map for the exploration drill programs at the Marigold mine,
Nevada, U.S. during the Exploration Period.
SSR Mining Inc.
PAGE 7
Figure 2. Drill cross-section along A-A’ highlighting the North Red Dot area at the Marigold
mine, Nevada, U.S.
Figure 3. Drill longitudinal section along B-B’ highlighting the South Red Dot area at the Marigold
mine, Nevada, U.S.
SSR Mining Inc.
PAGE 8
Figure 4. Longitudinal section for the exploration drill program at the Santoy mine complex,
Seabee Gold Operation, Saskatchewan, Canada during the Exploration Period.