NEVADA – Silver Standard Resources of Vancouver has agreed to purchase the Marigold gold mine 65 km southeast of Winnemucca for $275 million in cash. The mine is currently a joint venture of two other Canadian gold miners – Goldcorp (66.7%) and Barrick Gold (33.3%).
The truck and shovel Marigold open pit has been operated continuously since it opened in 1988. Gold is recovered by heap leaching at a rate consistently more than 140,000 oz of gold per year. Currently 360 employees and contractors are working at the site. Reserves include 294.5 million proven and probable tonnes grading 0.52 g/t Au. Resources include 45.6 million measured and indicated tonnes at 0.42 g/t Au plus 81.2 million inferred tonnes at 0.43 g/t Au.
Silver Standard said in a release that its first step at Marigold will be to integrate the new, larger mining equipment purchased by the previous owners into the operation. After that it will develop a new life-of-mine plan targeting a lower strip ratio and higher grades.
"The acquisition of Marigold accomplishes our strategic goal of adding an operating mine in a well established, low risk mining jurisdiction," said John Smith, president and CEO of Silver Standard. "We retain our financial capacity to continue internal growth and expect improved corporate operating cash flow going forward as a result of our 2013 cost restructuring program and the addition of the Marigold mine."
The transaction is expected to close in April 2014. Payment will be made from Silver Standard's cash on hand.
Details of the acquisition are available at SilverStandard.com.
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