Silver Standard Acquires Valmy Property At Marigold
VANCOUVER, BC - Silver Standard Resources Inc. has entered into a definitive agreement to acquire 2,844 hectares contiguous with its Marigold mine in Nevada for $11.5 million from Newmont Mining Corporation.
Paul Benson , President and CEO of Silver Standard stated, "This acquisition complements our strategy at Marigold to increase resources and add operating flexibility.
Highlights include: Silver Standard will acquire 100% of Newmont's interest in a prospective land package contiguous with the Marigold mine with 196,000 ounces of historical gold production, under the terms of the Agreement; Potential to develop Mineral Resources at the Valmy and MUD deposits as well as test extensions to Marigold's Basalt pit mineralization; Opportunity to improve and expand existing Marigold mine infrastructure in support of future mining operations.
The Valmy Property is a 2,844 hectare land package surrounding portions of the Marigold mine to the east, south and west. The addition of the Valmy Property increases the Company’s total land holding at the Marigold mine by over 35% to 10,759 hectares. The eastern portion of the Valmy Property contains the Valmy and MUD deposits which are less than 1,000 meters east of Marigold's Mackay deposit. Due to the proximity of the Valmy Property to Silver Standard’s existing or planned infrastructure, the additional landholding affords the opportunity for improved haul road, waste rock storage area and leach pad designs at the Marigold mine.
Mining of the Valmy and MUD deposits concluded in 2005. These areas will be the initial focus of our exploration program at the Valmy Property. The Valmy pit produced 196,000 ounces gold from 6.8 million tonnes of ore at a gold grade of 0.89 g/t between 2002 and 2005, as previously reported by Newmont in 2005.
The Company plans to commence a program to validate the Valmy Property drillhole database and develop a Mineral Resources estimate. Exploration will initially target resource extension around the Valmy and MUD pit surface excavations, in addition to the higher grade Basalt pit extension. The exploration program will consist of surface geological mapping, geochemical sampling and ground geophysics to support drilling. Silver Standard anticipates drilling on the Valmy Property to commence in the first quarter of 2016, subject to obtaining the requisite permits and other approvals, as part of Marigold's resource development program for 2016.
Under the terms of the Agreement, Silver Standard, through its wholly-owned subsidiary, Marigold Mining Company, will acquire 100% of Newmont's interest in the Valmy Property for cash consideration of $11.5 million . The purchase price will be funded from cash on hand.
Completion of the transaction is subject to customary closing conditions, including regulatory approvals. Under the terms of the Agreement, Silver Standard will be required to provide financial assurances to the environmental regulatory authorities with respect to the Valmy Property's long-term environmental and reclamation obligations. We expect the transaction to close in October 2015.