Exploration Activities At Marigold Mine
VANCOUVER, BC - Silver Standard Resources Inc. reported an update on its exploration activities at its Marigold mine in Nevada, and Seabee Gold Operation in Saskatchewan, Canada.
Highlighted drill results at the Marigold mine include: At HideOut, drillhole MRA6341 intersected 3.25 g/t gold over 18.3 meters from 199.6 meters below surface; and at Mud Pit, drillhole MRA6300 intersected 1.93 g/t gold over 45.7 meters from the drill collar. Highlighted drill results at the Seabee Gold Operation include: At Santoy 8A, drillhole SUG-16-920 intersected 27.86 g/t gold over 5.8 meters of true width; and at Santoy 9C, drillhole SUG-16-063 intersected 33.81 g/t gold over 4.1 meters of true width.
Paul Benson, President and CEO said, "We are encouraged by these exploration results at Marigold and Seabee as they demonstrate resource growth potential. We expect our exploration activity at both operations will positively impact our 2016 Mineral Reserves statement, generating value for our shareholders. Infill and conversion drilling at Seabee indicate the potential to grow our Mineral Resources at that high-margin operation, while we broaden our scope in the district targeting a new discovery in 2017."
At the Marigold mine exploration activities during the third quarter of 2016 focused on drilling oxide resource targets at the HideOut area and the adjoining Valmy property. The objective of the drilling activities is the expansion of Mineral Resources and their conversion to Mineral Reserves. The company completed 13,408 meters of reverse circulation drilling in 50 drillholes on the HideOut and Valmy target areas, where previous results demonstrated potential for Mineral Resource addition or Mineral Reserve conversion.
At HideOut, in addition to in-fill drilling, we extended the high-grade structure by 150 meters in the direction of the 8 South pit extension ("8SX") zone. The most notable result was drillhole MRA6341, which intersected 3.25 g/t gold over 18.3 meters, including 7.13 g/t over 7.6 meters, as shown on Figure 1. Such results demonstrate the potential to increase Mineral Resources or convert to Mineral Reserves at Hideout. The 350-meter long area between the HideOut and the 8SX areas remains open for extension of the existing mineralized areas. Indicated Mineral Resources at HideOut and the 8 South areas totaled 350,000 ounces of gold as at December 31, 2015.
Drilling at the Valmy property focused on increasing Mineral Resources adjacent to the existing Valmy and Mud pits by drilling step out holes. The best results include drillhole MRA6300, which intersected 1.93 g/t gold over 45.7 meters starting at the hole's collar, and drillhole MR6286, which intersected 1.02 g/t gold over 22.9 meters and 1.35 g/t gold over 32.0 meters. The results of exploration drilling in this area continue to confirm and extend the higher grade structural trend beyond the southeast corner of the Valmy pit. During the third quarter, drilling results defined a second mineralized zone 90 meters below the current Mineral Resources, as illustrated on Figure 3 in drillhole MR6286. At Valmy, the mineralization is open to the south and east. Inferred Mineral Resources totaled 300,000 ounces of gold at the Valmy property as at December 31, 2015.
One core drillhole is planned for the fourth quarter to explore the deep sulphide potential at Marigold, with additional core holes to follow in 2017. A gravity survey was conducted during the third quarter including portions of the Valmy and Marigold properties. Gravity data will be compiled and used to refine geologic concepts applied to the targeting of deeper structural features and potential conduits for the mineralizing fluids.
For 2016, the Seabee Gold Operation planned 65,000 meters of underground drilling and 18,000 meters of surface drilling to increase and convert Mineral Resources. During the first nine months of the year, a total of 43,315 meters from underground and 16,643 meters from surface in 149 and 44 diamond drillholes, respectively, was completed. Drilling activities centered on the Santoy mine complex and the deeper levels of the Seabee mine. A drill program was also initiated to test multiple targets on the "5-1" shear zone system, which parallels the Seabee shear zone to the south.
During the third quarter, a total of 43 drillholes were drilled to infill the Santoy 8A and Santoy Gap 9A, 9B and 9C mineralized quartz vein structures and the Seabee mine, for a quarterly total of 13,540 meters. These results have indicated the potential to upgrade Mineral Resources below the 39 Level drill bay, and have also been successful in discovering a new mineralized zone, which is likely the down plunge extension of the 8A area and is closer to existing infrastructure.
At the Marigold mine, fourth quarter exploration drilling will be directed at expanding Mineral Resources to the south and east of the existing Valmy pit and exploring for the eastern extension of mineralization that was previously mined in the Basalt pit. The company expects to complete one deep core hole by the end of the fourth quarter, representing the sixth deep core hole targeting higher-grade sulphide mineralization. Silver Standard plans to complete a total of three deep core holes by the end of the first quarter of 2017. Results from the 2016 drill program, along with results from the Assay Program, will be included in the 2016 Mineral Reserves and Resources statement to be published in the first quarter of 2017.
At the Seabee Gold Operation, the exploration program will continue during the fourth quarter with infill drilling at the Santoy Gap area to convert Inferred Mineral Resources to Measured and Indicated Mineral Resources. At surface, our drilling focus will be on infilling the up dip area to convert and extend Mineral Resources at the Santoy mine complex, up dip or plunge of the 9A and 9C areas. All exploration results will be included in our 2016 Mineral Reserves and Resources statement to be published in the first quarter of 2017.