Although Silver Standard/Marigold's 13-page news release on its recently-updated mine plan was accompanied by the usual cautions regarding forward-looking statements and economic projections, all indications are the company is planning for long life, profit, and production growth. Silver Standard, based in Vancouver, British Columbia, has 100 percent ownership of Marigold Mine, which they purchased in April of 2014.
Marigold Mine, in Humboldt County, is 36 miles from Winnemucca and 15 miles from Battle Mountain. Its approximately 360 employees live in both communities.
When the Canadian company purchased Marigold Mine, they were purchasing a well-developed mine in production since 1988, that had already produced more than 2.7 million ounces of gold. Marigold's ore is located on approximately 19,506 acres of land and is part of the Battle Mountain-Eureka trend. The gold-silver deposit at Marigold has a strike length over five miles long and six-tenths of a mile wide, making it one of the largest mineral systems in the region.
Modest capital costs projected for the future reflect that major mine development has already been accomplished - including several open pits, waste rock stockpiles, leach pads, a carbon absorption facility, and a carbon processing and gold refining facility.
Mining moved an average of 150,000 tons of material a day in 2013, with about 40,000 tons of ore processed each day on the heap leach pads. Ore is processed at Marigold to the doré bar stage. The gold doré bars are shipped to a third party refinery for further processing.
Highlights of Marigold's Mine Plan include a significant increase in Silver Standard's reserve base and the company's belief that a good potential exists for mine life extension and production growth. Marigold projects mining an average 186,700 ounces a year over the nine years of active mining taking the project to 2023.
The company lists the total cost of producing an ounce of gold at $986. The mine plan anticipates "robust economics" providing the price of gold stays around $1,300 an ounce (which is higher than the current price around $1,220 an ounce).
"Following successful integration, the life of mine plan demonstrates how Marigold is an important step in transforming Silver Standard into a premier mining company," said John Smith, president and CEO of the company. The Marigold team will be focusing on the additional work to convert "resources" to "reserves" and increase operating efficiencies, said Smith who added that both goals were within the company's demonstrated expertise.
The mine plan estimates that over the currently projected nine-year mine life a fleet of 18 haul trucks, each capable of carrying 290 metric tonnes and three loading units are expected to move about 614.8 million metric tonnes of material that will include 129.7 million metric tonnes of ore for a strip ratio of 3.7 to one.
It takes about 120 days for the ore to be processed on the heap leach pads with total gold recovery of approximately 74 percent.
Silver Standard expects to be able to meet all the requirements for necessary operating permits to complete the life of mine plan, according to the report.
Mine management provides regular updates to local stakeholders including city and county government and works for community support and engagement.
In 2013, the mine returned $300,000 to area communities and charities in the form of donations, scholarships, and in-kind support.
The updated mine plan represents the best projections possible given the uncertainties of the gold and silver markets, possible changes in laws, regulations and government policies, environmental requirements, the ability to raises necessary funds, insurance costs and possible increases in equipment and supplies.[[In-content Ad]]
