Track Record of Growth and Performance
The Marigold mine is located in Humboldt County, Nevada, United States on the Battle Mountain-Eureka trend. Silver Standard completed the acquisition of Marigold on April 4, 2014 and published a technical report in November 2014.
In production since 1988, Marigold is a large run-of-mine heap leach operation with several open pits, waste rock stockpiles, leach pads, a carbon absorption facility, and a carbon processing and gold refining facility. Currently the mine utilizes a fleet of 290-tonne haul trucks and three loading units. Based on the Marigold mine technical report published in November 2014, for the period of active mining to 2023, mine material movement averages 71.8 million tonnes per year and ore tonnage delivered to the leach pads averages 15.1 million tonnes per year. Approximately 42,000 tonnes of ore are processed per day as run-of-mine ore stacked on the heap leach pads. The gold doré bars produced at the mine are shipped to a third party refinery.
Highlights of the Marigold mine include:
- Mineral Reserves: Probable Mineral Reserves of 2.17 million ounces of gold at an average grade of 0.45 g/t, including 0.13 million ounces of gold in leach pad inventory, as at December 31, 2015.
- Potential for mine life extension: Indicated Mineral Resources of 4.58 million ounces of gold at an average grade of 0.46 g/t, including 0.13 million ounces of gold in leach pad inventory, as at December 31, 2015.
- Delivered record annual gold production: Produced a record 207,006 ounces of gold in 2015, exceeding increased gold production guidance.
- 2016 Production guidance: Marigold is expected to produce between 200,000 and 210,000 ounces of gold in 2016.
- Competitive cost position: Average annual cash costs of $762 per payable ounce of gold sold and all-in sustaining costs of $986 per payable ounce of gold sold over the life of mine, based on the Marigold mine technical report published in November 2014.
- Limited capital requirements: Total sustaining capital expenditures of $123 million or $74 per payable ounce of gold sold over the life of mine.
- Exploration: Three new higher-grade mineralized centers discovered since acquisition added new Mineral Resources. Deep sulphide exploration drilling has confirmed the presence of permissive rock units at depth. Exploration activities are focused on mine life extension.
Thomas Rice, SME Registered Member, and James N. Carver, SME Registered Member, each of whom is an employee of the company and a Qualified Person, have reviewed and approved the foregoing disclosure on the Marigold mine. Please refer to the technical report entitled "NI 43-101 Technical Report on the Marigold Mine, Humboldt County, Nevada" dated November 19, 2014, a link to which is provided below.
Mineral Resources are reported inclusive of Mineral Reserves. Please refer to our Mineral Reserves and Resources Table.
This page contains forward-looking statements. Please see the following link: Legal.