SSR Mining drills high grade gold at Seabee

SSR Mining (TSX: SSRM; NASDAQ: SSR; ASX: SSR) says it is drilling excellent grades and long intercepts at its Seabee gold operation, 125 km northeast of La Ronge, Saskatchewan. The project consists of the Santoy gold mine and Seabee processing plant 15 km away by road.

The Gap hanging wall (GHW) is being drilled from underground drives at the Santoy mine. Hole SUG-20-920 returned 6.9 metres grading 19.16 grams gold per tonne, and hole SUG-20-017 returned 9.5 metres averaging 12.14 grams gold per tonne. The drill program is aimed at upgrading existing resources to reserves in 2022.

The Santoy hanging wall (SHG) is the most recent discovery, and is being drilled both from underground and surface. Hole JOY-20-918 intersected 2.8 metres grading 12.75 grams gold per tonne; hole SUG-21-011 cut 2.2 metres of 11.31 grams gold per tonne; and hole SUG-21-018 intersected 3.6 metres of 16.31 grams gold per tonne. The SHG is viewed as a potential future development within the Santoy mine. If drilling is successful, a resource estimate will be released next year.

The Joker target located 1 km south of the Santoy mine has the potential to provide a substantial extension to that mine beyond the GHW and SHW, says SSR. Hole BAT-20-017 intersected 1.5 metres grading 25.97 grams gold per tonne and 0.75 metre grading 21.48 grams gold per tonne. Both these assays came from less than 15 metres below surface.

The mineralization at the Joker target shares similarities to the GHW, which is characterized by quartz veins hosting visible gold with up to 10% sulphides.

SSR would welcome a significant mine life extension at Seabee because there is excess capacity at the mill and the tailings dam was recently expanded to provide management through 2031 at current production levels.

“Near-mine exploration from May 14, 2020 over June 30, 2021 focused on mineral resource conversion at the GHW and exploration drilling along strike of the GHW resource,” Cosmos Chiu, a mining analyst who covers the company for CIBC,  commented in a research note to clients. “Overall, results continue to support potential for a mine-life extension at Seabee.”

At year-end 2020, the Seabee gold operation had proven and probable reserves of 1.6 million tonnes averaging 9.83 grams gold per tonne for 493,000 oz. of contained gold.

In the first half of 2021, the operation produced 61,000 oz. of gold, well on its way to guidance figures of between 95,000 and 105,000 ounces. The mine site all-in sustaining cost per ounce was US$795, well below its guidance of US$860 and US$910 per ounce.