The Master Plan Feasibility Level Study Reserve Case Produces an NPV 5% of $1.7 Billion
The Alternative PEA Case Including Ardich Resources Produces a Potential NPV 5% of $2.2 Billion
DENVER, Nov. 30, 2020 /PRNewswire/ - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (ASX: SSR) ("SSR Mining") is pleased to announce the positive results of its independently prepared Master Plan study of the Çöpler District ("Çöpler District Master Plan 2020" or "CDMP20") which will be set forth in an independent National Instrument 43-101 Technical Report on the Çöpler mine. Çöpler has been in continuous operations since 2010 and has cumulatively produced over 2 Moz of gold. The CDMP20 summarizes SSR Mining's current development strategy for Çöpler and includes analysis for two production scenarios:
Highlights of the Çöpler District Master Plan 2020:(All results on a 100% basis; currency in U.S. dollars)
Rod Antal, President and CEO stated, "We are pleased with the results of the updated Çöpler District Master Plan which demonstrates long-term value and the significant organic growth potential of this world-class operation. The CDMP20 clearly outlines a potential path to sustaining ~300,000 ounces of annual production from the district for at least 10 years, the extension of the overall mine life to 20+ years at increased processing rates, and the generation of robust free cash flows over the mine life.
In addition to numerous highly prospective targets identified within the district over the last several years, the subsequent Ardich drilling results, coupled with the C2 exploration results from last week, continue to indicate the significant upside we see at Çöpler for years to come. Ardich represents the most advanced project in the district with exploration, engineering, and permitting continuing to advance the project to potentially bring it into production by 2023."
Çöpler District Master Plan 2020 Summary
The CDMP20 summarizes the current SSR Mining development strategy for Çöpler and includes analysis for two production scenarios:
A location plan showing the facility locations and the boundaries of the Reserve Case and the PEA Case is shown in Figure 1.
The CDMP20 scope included:
Figure 1. CDMP20 Reserve Case and PEA Case Boundaries.
The Reserve Case is supported by feasibility study level work on the currently operated pits at the Çöpler and Çakmaktepe deposits, the heap leach facility, and the sulfide plant. The processing analysis in the Reserve Case includes incorporation of a flotation circuit into the existing sulfide plant to upgrade sulfide sulfur to fully utilize grinding and pressure oxidation ("POX") autoclave capacity. The flotation circuit is in detailed design and preliminary construction works are underway pending final permitting which is expected in late 2020.
The PEA Case on an expanded Çöpler project includes the new predominantly oxide Ardich deposit for the enlarged project area, and that reflects the increased capital costs and infrastructure required. The PEA Case analyzes inclusion of production from Ardich in a whole of project analysis and represents a significant change from the Reserve Case economic results and production profile.
The key production and economic analysis from the CDMP20 are shown in Table 1.
Table 1. CDMP20 Results Summary.
Item | Unit | Reserve Case | PEA Case |
Oxide Processed | |||
Heap Leach Quantity | kt | 7,668 | 25,008 |
Gold Feed Grade | g/t | 1.22 | 1.69 |
Sulfide Processed | |||
Quantity Milled | kt | 51,084 | 54,073 |
Gold Feed Grade | g/t | 2.24 | 2.33 |
Total Gold Produced | |||
Oxide – Gold | koz | 256 | 956 |
Sulfide – Gold | koz | 3,334 | 3,691 |
Total – Gold | koz | 3,591 | 4,646 |
Oxide – Gold Recovery | % | 73 | 68 |
Sulfide – Gold Recovery | % | 91 | 91 |
5-Year Annual Average | |||
Average Gold Produced | koz | 266 | 306 |
Free Cash Flow | $M | 224 | 249 |
Production Costs (3) | $/oz Au | 682 | 701 |
All–in Sustaining Costs (3) | $/oz Au | 865 | 886 |
Key Financial Results | |||
Production Costs (3) | $/oz Au | 748 | 726 |
All–in Sustaining Costs (3) | $/oz Au | 945 | 893 |
Site Operating Costs | $/t treated | 47.09 | 42.87 |
After-Tax NPV (5%) | $M | 1,733 | 2,164 |
Mine Life | years | 21 | 22 |
Note: 5-Year annual average is for the period January 2021 to December 2025. |
Sulfide Plant Flotation Circuit
A 50 to 150 tph flotation circuit will increase overall sulfide plant throughput, utilizing latent capacity in the sulfide plant, in particular the grinding and POX circuits. Total plant throughput will increase up to a maximum of 400 tph, depending on ore type and chemistry. Total plant and flotation circuit throughput will modulate to produce a concentrate that will maintain maximum autoclave sulfide sulfur throughput rates.
The flotation circuit is being installed between grinding and acidulation, as shown in Figure 2. A bleed / slip stream from the grinding thickener feed will go to flotation, gold bearing sulfide concentrate will return to the grinding thickener to be combined with POX feed. The carbonate rich flotation tailings go directly to leaching.
The projected benefits of the flotation circuit are:
Figure 2. Flotation circuit block flow diagram and graphics.
Figure 3. Flotation circuit graphics.
Figure 4. Flotation circuit graphics.
Ardich
The Ardich deposit is a newly discovered deposit that is separate to the other deposits on the property. Drilling is continuing at Ardich and is expected to further define and expand the Mineral Resource. The development of Ardich requires development of a new open pit that is 6 km from the current Çöpler pit and 1 km from the Çakmaktepe pit.
The PEA Case defines the first iteration of the potential development plan for Ardich. Permitting and planning for development is underway. The production profile of the PEA Case is outlined below in Figure 5.
Figure 5. PEA Case production profile.
Note: 2020E gold production of 330k ounces calculated based on year-to-date actual production of 244k ounces, plus 86k ounces of estimated gold production in Q4 2020. |
Inferred Mineral Resources from Ardich are included in the PEA Case. The Ardich oxide Mineral Resources in the PEA Case for feed to the oxide heap leach represent a more than doubling of the production rate at an average grade that is 50% higher than the Çöpler oxide heap leach processing rate and average grade in the Reserve Case. The PEA Case includes assumptions for separate capital, infrastructure and permitting that will be required to develop the Ardich Mineral Resources. The Ardich Mineral Resource was not included in the previous Technical Report and so the PEA represents a significant change in information.
The PEA Case is preliminary in nature and includes an economic analysis that is based, in part, on Inferred Mineral Resources. Inferred Mineral Resources are considered too speculative geologically for the application of economic considerations that would allow them to be categorized as Mineral Reserves, and there is no certainty that the results will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
NPV Sensitivities
Figure 6. Reserve Case NPV Sensitivity.
Figure 7. PEA Case NPV Sensitivity.
Mineral Resources
Overall, there has been a 24% increase in Measured and Indicated contained gold and a 58% increase in Inferred contained gold. The new work has for the first time identified Measured Mineral Resources at Çöpler and Ardich.
The differences have been calculated between the CDMP20 Mineral Resources and the previous Mineral Resources reported as at December 31, 2019. The complete Mineral Resource is shown in Table 2 for each deposit, material type, and classification.
The differences are a function of the following changes:
Table 2. CDMP20 Mineral Resources Summary.
CDMP20 Mineral Resources Summary (as at the Effective Date) | |||||||
Classification | Tonnage (kt) | Grades | Contained Metal | ||||
Au (g/t) | Ag (g/t) | Cu (%) | Gold (koz) | Silver (koz) | Copper (klb) | ||
Çöpler Mine Oxide Mineral Resource | |||||||
Measured | 287 | 1.29 | 7.75 | 0.09 | 12 | 72 | 540 |
Indicated | 25,139 | 0.98 | 3.44 | 0.15 | 789 | 2,781 | 81,399 |
Measured + Indicated | 25,427 | 0.98 | 3.49 | 0.15 | 801 | 2,853 | 81,939 |
Inferred | 33,083 | 0.96 | 7.16 | 0.13 | 1,017 | 7,614 | 94,935 |
Çöpler Mine Sulfide Mineral Resource | |||||||
Measured | 2,454 | 2.22 | 7.21 | – | 175 | 569 | – |
Indicated | 84,558 | 1.84 | 5.04 | – | 5,015 | 12,617 | – |
Measured + Indicated | 87,012 | 1.86 | 4.71 | – | 5,190 | 13,186 | – |
Inferred | 34,073 | 1.54 | 12.72 | – | 1,692 | 13,937 | – |
Çakmaktepe Oxide Mineral Resource | |||||||
Measured | – | – | – | – | – | – | – |
Indicated | 3,626 | 1.53 | 8.50 | – | 179 | 993 | – |
Measured + Indicated | 3,626 | 1.53 | 8.50 | – | 179 | 993 | – |
Inferred | 1,205 | 0.85 | 4.04 | – | 33 | 157 | – |
Ardich Oxide Mineral Resource | |||||||
Measured | 4,707 | 1.63 | – | – | 246 | – | – |
Indicated | 12,817 | 1.62 | – | – | 666 | – | – |
Measured + Indicated | 17,524 | 1.62 | – | – | 912 | – | – |
Inferred | 4,713 | 1.62 | – | – | 246 | – | – |
Ardich Sulfide Mineral Resource | |||||||
Measured | 695 | 2.56 | – | – | 57 | – | – |
Indicated | 2,231 | 3.71 | – | – | 266 | – | – |
Measured + Indicated | 2,926 | 3.43 | – | – | 323 | – | – |
Inferred | 782 | 4.24 | – | – | 107 | – | – |
Bayramdere Oxide Mineral Resource | |||||||
Measured | – | – | – | – | – | – | – |
Indicated | 145 | 2.34 | 20.82 | – | 11 | 97 | – |
Measured + Indicated | 145 | 2.34 | 20.82 | – | 11 | 97 | – |
Inferred | 8 | 2.17 | 19.95 | – | 1 | 5 | – |
CPMD20 Mineral Resources Total | |||||||
Measured | 8,143 | 1.87 | 2.45 | 0.00 | 490 | 641 | 540 |
Indicated | 128,517 | 1.68 | 3.99 | 0.03 | 6,926 | 16,485 | 81,399 |
Measured + Indicated | 136,660 | 1.69 | 3.90 | 0.03 | 7,416 | 17,126 | 81,939 |
Inferred | 73,865 | 1.30 | 9.14 | 0.06 | 3,094 | 21,713 | 94,935 |