Silver Standard Resources Inc. (USA) (NASDAQ:SSRI) recently provided operational highlights from its 3Q2016. The company stated that it has observed record quarterly production, during the quarter, of 112,559 gold equivalent ounces. SSRI currently has three gold mining operations, which it continues to significantly progress. It is particularly making progress at its Seabee operation, where SSRI recently began an operational excellence program. The announcement had helped the stock rally, during the October 12 and October 13 trading sessions, adding approximately $0.5 to its share value. Much like other miners, SSRI had also suffered a decline at the start of the month and is now slowly gaining strength. Analysts are predicting another bullish run in Gold. Read more about how this small company could provide large returns on your investment HERE.
In its update, Silver Standard noted that the Seabee operation was comprised of two mines, Seabee and Santoy underground mines. However, both mines are operated through a single processing facility and were able to produce 20,142 ounces of gold, during the 3Q2016. Despite some drawbacks, the management claimed that the project was on track to achieve the upper end of its annual production guidance. Moreover, as the Operational Excellence plan gets underway, the company plans to increase its throughput to the ore mill, at the site. As of the end of 3Q2016, the mill was capable of handling 1,000 tons of ore per day.
Potential Fisher Project
Silver Standard recently announced that it has signed an option agreement, with Eagle Plains Resources Ltd. Under the agreement, the company would be able to acquire an 80% interest in the Fisher project, located near the Seabee operations. SSRI has noted that the area has a number of gold occurrences, much like Seabee. It should be noted here that the Seabee operations is a high margin project and the discovery of more deposits, in the extended area, would probably double SSRI’s land position.
The terms of the agreement state that Silver Standard would have a 4-year option period, so as to explore the area. Once the company has spent $4 million in exploration expenditures, it would be entitled to a 60% interest in the project. Consequently, for a price of $3 million SSRI could acquire an additional 20% interest.