SSR: Red Dot Exploration Can Increase Marigold Mine Life
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(Kitco News) - SSR Mining Inc. (NASDAQ, TSX: SSRM), in a report on exploration activities, said Tuesday that efforts at Red Dot can extend the life of the Marigold mine in Nevada without requiring expansion investment capital.
Work at Red Dot has increased officials’ confidence in the deposit's economics based on current assumptions, which include a gold price of $1,250 per ounce, said Paul Benson, president and chief executive officer.
“Positively, we do not need to invest mining expansion capital considered in the Marigold equipment replacement study to support Red Dot economics,” Benson said. “Red Dot production is expected to be added to the current mine plan, extending Marigold's life into the early 2030s.
“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.”
The company said it expects to report on conversion of Red Dot Phases 2 and 3 mineral resources at year-end, saying this will complement the already-reported 350,000 ounces of gold mineral reserves, referred to as Phase 1. Further, at Marigold, infill drill results for the Mackay pit and the North and South Red Dot areas are expected to add to existing reserves and resources at year-end.
At the Mackay pit, one drill hole intersected 1.03 grams per tonne of gold over 19.8 meters from 75 meters. At North Red Dot, a hole 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. At South Red Dot, a hole 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.
The company was also upbeat about efforts at the Seabee gold operation in Saskatchewan and the Pitarrilla project in Mexico. At the Seabee gold operation, brownfield drill results for the Santoy Gap Hanging Wall are expected to increase mineral resources at year-end. One hole intersected 7.01 g/t gold over 18.2 meters, while another intersected 9.96 g/t gold over 10.7 meters.
Further, greenfields exploration at the Seabee operation and Fisher property intersected new mineralized zones at the Batman Lake and Mac targets, SSR said.
"Over recent years, we have continued to invest in our business, even in times of depressed precious metals prices,” Benson said. “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.”