Puna Operations

Brownfields Development for Mine Life Extension

Puna Operations Inc. is a joint venture comprised of SSR Mining’s Pirquitas property and Golden Arrow Resources’ Chinchillas property. It is owned on a 75% / 25% basis by each company, respectively. SSR Mining is the joint venture operator. Near-term production growth is anticipated in the second half of 2018 via the development of the Chinchillas deposit.

The Chinchillas project is a silver-lead-zinc deposit, located in the Puna region of Jujuy Province, Argentina. Chinchillas is located approximately 42 kilometers by road from the Pirquitas property. The 2017 Pre-Feasibility Study on the Chinchillas project evaluates the development and construction of an open-pit mine and supporting infrastructure, which is expected to supply ore to the Pirquitas processing facilities over an eight-year active mining period. Chinchillas will be mined by conventional drill, blast, truck, and loading open pit mining methods. A fleet of 35-tonne road haul trucks will transport ore to the Pirquitas processing facilities. Over the life of mine, the Pirquitas processing facilities are expected to produce a silver-lead concentrate and a zinc concentrate. The two concentrates will be shipped internationally to smelters for processing.

The Pirquitas operation is located in Jujuy Province, Argentina. The mine achieved commercial production in 2009. The San Miguel open pit at the Pirquitas operation concluded mining activity in January 2017. In 2018, Puna Operations is scheduled to process stockpiles in a conventional mineral flotation plant. The silver concentrate produced from the plant is shipped to third party smelters.

Highlights of the operation include:

  • 2018 Production guidance: The Pirquitas mine is scheduled to process stockpiles and is expected to produce between 2.3 and 3.3 million ounces of silver in 2018 attributable to SSR Mining.
  • Chinchillas project development:  Receipt of permits in December 2017 to construct the Chinchillas project, Puna Operations will complete development of this deposit in 2018 to extend its operating life
  • Delivered strong annual silver production in 2017: Produced a record 6.2 million ounces of silver.

Chinchillas Pre-Feasibility Study Highlights:

  • Long mine life: Average annual silver equivalent production of 8.4 million ounces over an eight-year mine life and 4,000 tonne per day throughput.
  • Attractive valuation: Post-tax net present value of $178 million using a 5% discount rate. Attractive post-tax internal rate of return of 29%.
  • Low capital intensity: An estimated $81 million capital costs, based on initial capital expenditures, including owner’s costs and contingency. Capital cost estimates assume utilizing certain property, plant and equipment from the Pirquitas property.

Mineral Reserves and Resources:

  • Mineral Reserves
    • Chinchillas: Proven and Probable Mineral Reserves of 58 million ounces of silver at an average grade of 154 g/t, 310 million pounds of lead at an average grade of 1.20% and 127 million pounds of zinc at an average grade of 0.49%, as at December 31, 2017.
  • Mineral Resources
    • Chinchillas: Measured and Indicated Mineral Resources of 96 million ounces of silver at an average grade of 101 g/t, 581 million pounds of lead at an average grade of 0.90% and 386 million pounds of zinc at an average grade of 0.60%, as at December 31,2017.

Bruce Butcher, P.Eng., a Qualified Person and our Director, Mine Planning, has reviewed and approved the foregoing disclosure on Puna Operations. Please refer to the technical reports entitled "NI 43-101 Technical Report Pre-freasibility Study of the Chinchillas Silver-Lead-Zinc Project, Jujuy Province, Argentina" with a filing date of May 15, 2017 and an effective date of December 31, 2016, and "NI 43-101 Technical Report on the Pirquitas Mine, Jujuy Province, Argentina" dated December 23, 2011, a link to each of which is provided below.

Mineral Resources are reported inclusive of Mineral Reserves. For Mineral Reserves and Resources on the Pirquitas property, please refer to our Mineral Reserves and Resources Table. For Mineral Reserves and Resources on the Chinchillas property, please refer to the Chinchillas Mineral Reserves and Resources Table.

This page contains forward-looking statements. Please see the following link: Legal.

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