SSR Mining Inc. (NASDAQ:SSRM) Q4 2019 Earnings Conference Call - Final Transcript
Feb 21, 2020 • 11:00 am ET
Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Cosmos Chiu of CIBC World Markets.
Hi. Thanks, Paul and team. Thank you for the conference call here. Maybe my first question is on Marigold. Kevin, as you mentioned, there is a new leach pad, you'll start stacking on the new leach pad now. Can you speak to any potential positive impact of recovery on cycle time? As you know stack ore on a new leach pad, given that it's lower down, percolation is going to be faster, the leach kinetics. Anything positive that you can speak to.
Sure. No, thanks for the question Cosmo and we started applying solution to that leach pad right at the tail end of Q4. And so we're seeing the benefits now. And so we should, it's positive for Q1. But it was part of our plan, it's part of our guidance, so there's nothing different than what you've already been advised or would have read.
For sure. And then I guess, you know, now that you've built a new leach pad, when is the next sort of construction of the next leach pad?
We're in the process of approving the next leach pad, which would start construction this year. It's in our -- it's in our capital guidance for this calendar year and we're in -- we're in the early stages of developing a pad, that would probably be built the year after next or the tail end of next year. So it's an ongoing -- an ongoing process to make sure that we optimize the irrigation ratios and the leach times.
For sure. And how high are these? I haven't been to Marigold for a few years now. How high are these leach pad, some of the older leach pads like how -- how high did they go?
They get to about 400 feet, so 121.6 meters.
Okay, great. Maybe, again, on Marigold but switching gears a little bit. Congratulations on increasing the reserves at Marigold. But I also noticed that total resources decrease a little bit due to depletion and in part due to revised slope angles. I'm just wondering if you can give us a bit more detail on that change in assumption. Is that based on what you've observed in the current pit or is it just based on being a bit more conservative as you consider going deeper into the pit?
Yeah, I'll just make a comment first and pass to Kevin or Carl. Yeah, you've got to remember that each year, we tend to move the focus of what we -- the objectives are in the exploration. This year, it was very much driven around getting to Phases 2 and 3 of Red Dot into reserves. So we didn't have drill rigs elsewhere looking for additional resources.
So, don't read too much into the drop in resources. That will be the focus this year. But in terms of the engineering slopes.