Precious metals producer SSR Mining has updated the life-of-mine (LoM) plan for its Marigold operation, which confirms near-term production growth for the gold mine situated in the northern foothills of the Battle mountain range of Nevada.

The 3.2-million ounces of gold that the US mine has in mineral reserves are sufficient for ten years of mining to 2028 and for 15 years of gold production to 2032, SSR CEO Paul Benson reported on Monday.

Between 2018 and 2027, the Marigold mine will produce an average of 211 394 oz/y of gold, with production expected to be higher in the first six years of the updated LoM plan, at 236 073 oz between 2018 and 2023.

Production will peak at 265 000 oz/y in 2021 and 2022 – a more than 30% increase over 2017, Benson stated in a news release.

The gold will be produced at an LoM cash cost of $730 a payable ounce and at an all-in sustaining cost of $966 a payable ounce.

Marigold uses a standard openpit mining method with a current mining rate of about 200 000 t/d expected to increase from the beginning of 2019 to an average of 225 000 t/d through to 2028.

SSR will expand its 300 t class haul truck fleet to 25 by the third quarter, when the four additional trucks that were approved for purchase in February enter into service.

The new haul trucks are included in the $284-million LoM capital expenditure estimated for the mine.

The updated mine plan has strong economics, with Marigold expected to generate about $3.09-billion in net revenue over the LoM and deliver cash flow of $741-million after tax. The after-tax net present value, using a 5% discount, is estimated to be $552-million.

SSR reported that there were several opportunities to improve the economics of the gold mine, including ongoing exploration to increase resources and convert to reserves.

The company’s main exploration focus is the Red Dot deposit, which if it converts sufficient resources to reserves, will trigger a study to consider the expansion of Marigold. Such a study will be prepared in the first half of next year.

“Marigold opened in 1989 with an initial estimated eight-year mine life and next year celebrates its thirtieth year of continuous operation. We continue to invest in exploration at the site and expect to continue to increase reserves and resources," Benson said.

SSR also owns the Seabee gold operation in Saskatchewan and the 75%-owned and operated Puna Operations joint venture in Jujuy, Argentina.