Seabee Gold Operation
High Grade Underground Mines
The Seabee Gold Operation is located in Northern Saskatchewan, Canada approximately 125 kilometers northeast of the town of La Ronge. The Santoy underground mine has been in continuous commercial production since 2014. Commercial production at the Seabee underground mine commenced in 1991 and exhausted Mineral Resources in 2018. All ore is processed at the Seabee mill facility, which has been in operation since 1991 and is expected to achieve 1,050 tonnes per day in 2019. The Seabee mill facility produces doré bars that are shipped to a third party refinery. Access to the mine site is by fixed wing aircraft to a 1,275-meter airstrip located on the property. Equipment and large supplies are transported to the site via a 60-kilometer winter ice road, which is typically in use from January through March.
SSR Mining acquired the Seabee Gold Operation on May 31, 2016 as a result of our acquisition of Claude Resources Inc. and filed a technical report in October 2017, which included the results of a Preliminary Economic Assessment evaluating an expansion of the Seabee Gold Operation.
Highlights of the Seabee Gold Operation include:
- Enhanced Mineral Reserves profile: Proven and Probable Mineral Reserves of 440,000 ounces of gold at an average grade of 9.88 g/t as at December 31, 2017.
- Potential for mine life extension: Measured and Indicated Mineral Resources of 680,000 ounces of gold at an average grade of 10.74 g/t. Inferred Mineral Resources of 667,000 ounces of gold at a grade of 9.29 g/t. Mineral Resources are as at December 31, 2017.
- Delivered record gold production: Produced a record 83,998 ounces of gold in 2017.
- 2018 production guidance: Anticipated production of between 85,000 and 92,000 ounces of gold.
- Low cost profile: Achieved cash costs of $602 per ounces of gold sold in 2017. Anticipated cash costs of $560 to $610 per ounce are projected for 2018.
- Exploration potential: Approximately $9 million planned for exploration programs in 2018 focused in three areas including infill drilling and exploration at Santoy Gap, exploration on the Seabee land package for new deposits, including follow-up on the 2017 Carr project results, and initial drill programs on the Fisher property.
Seabee September 2016 Preliminary Economic Assessment Highlights:
- Extends production profile: Estimated gold production averages 100,000 ounces per year over the period from 2018 to 2023, a 29% increase from 2016 production.
- Near-term production growth: Estimated peak gold production of 120,000 ounces in 2020 is 42% higher than 2017 output.
- Expanded operating margins: Estimated life of mine cash costs of $548 per payable ounce of gold sold due to higher sustained throughput and an average mill feed grade of 8.51 g/t gold.
- Improved processing plant performance: Estimated mill production averages 1,050 tonnes per day beginning in 2019, a 21% increase to 2016 throughput, with a projected 96.5% recovery.
- Low capital investment: Development near existing infrastructure reduces projected total capex to $90 million, driving low all-in sustaining costs of $682 per payable ounce of gold sold.
The Seabee Preliminary Economic Assessment is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the Seabee Preliminary Economic Assessment will be realized.
For historical information on the Seabee Gold Operation and Claude Resources, please visit Claude Resources’ profile on http://www.sedar.com.
Cameron Chapman, P.Eng., our General Manager at the Seabee Gold Operation, and Jeffrey Kulas, P.Geo., our Manager Geology, Mining Operations at the Seabee Gold Operation, each of whom is a Qualified Person, have reviewed and approved the foregoing disclosure on the Seabee Gold Operation. Please refer to the technical report entitled “NI 43-101 Technical Report for the Seabee Gold Operation, Saskatchewan, Canada” dated October 20, 2017 with an effective date of December 31, 2016, a link to which is provided below. For information on the Fisher project, refer to our news release dated October 6, 2016.
Mineral Resources are reported inclusive of Mineral Reserves. Please refer to the Mineral Reserves and Mineral Resources tables in our news release dated September 7, 2017.
This page contains forward-looking statements. Cash costs and all-in sustaining costs (AISC) per payable ounce of gold sold are non-GAAP financial measures. Please see the following link: Legal.