Announcement • Nov 12
SSR Mining Inc. Announces Initial 12 Year Life of Mine Plan for CC&V with an NPV5% of $824 Million and Potential for Further Mineral Reserve Conversion
SSR Mining Inc. announced the results of a Technical Report Summary ("TRS") for the Cripple Creek & Victor Gold Mine ("CC&V") in Colorado, USA (the "2025 CC&V TRS"). Since closing of the CC&V acquisition during the first quarter of 2025, the mine has produced 85,165 ounces of gold from February 28, 2025 to September 30, 2025, and continues to track to the top-end of its attributable 2025 production guidance of 90,000 to 110,000 ounces. Over this same time period, CC&V has generated approximately $115 million in mine site after-tax free cash flow to SSR Mining. Inclusive of the $100 million upfront cash payment and $175 million in future contingent payments, realized free cash flow and the life of mine projections outlined in the 2025 CC&V TRS, the acquisition is expected to provide SSR Mining with an IRR in excess of 100%. The majority of ore mined in the 2025 CC&V TRS is expected to be sourced from the currently active Globe Hill, Schist Island and South Cresson pits. On average, the operating period from 2026 to 2036 includes average stacking rates of 52,000 tonnes per day, and total material movement rates of 85,000 tonnes per day for a life of mine strip ratio of 0.65:1. The average life of mine gold recovery is 51.6%, with an average stacked grade of 0.39 grams per tonne. Approximately 5% of all ore stacked over the life of mine is currently planned to be crushed, with the remainder placed as Run of Mine ("ROM") ore. Placement rates and crushed versus ROM considerations reflect thorough technical analysis and ensure a minimum sufficient leach cycle time of 120 days. The TRS production plan also includes approximately 334,000 ounces of recoverable gold currently in process inventory. The CC&V mine is grid connected, with emergency power available via backup diesel generators for critical systems. The current CC&V heavy equipment fleet includes 17 haul trucks, two front-end loaders and two hydraulic shovels. NSR royalties across the CC&V property range from 0.5% to 10.0%, with an effective life of mine average royalty rate of 5%. Additional potential for upside at CC&V The CC&V property covers over 15,000 acres within one of the most prolific gold mining districts in US history. More than 2.8 million meters of drilling have been completed across more than 17,000 drill holes on the CC&V property. While not all of this historical drilling has been factored into current Mineral Reserve and Mineral Resource compilations, as of July 1, 2025, CC&V hosted more than 4.8 million ounces of Measured and Indicated Mineral Resources and an additional 2.0 million ounces of Inferred Mineral Resources, both exclusive of Mineral Reserves. These significant Mineral Resources present considerable potential for growth in the future. A constraint in the definition of Mineral Reserves as compared to Mineral Resources is the available Valley Leach Facility ("VLF") capacity for the placement of additional ore tonnes. The Mineral Reserves included in the 2025 CC&V TRS are therefore constrained by the VLF capacity provided by the currently in-process Amendment 14 permit with the Colorado Division of Reclamation, Mining, and Safety ("DRMS") and Teller County. Amendment 14, once approved, will provide incremental heap leach pad capacity to process 171 million tonnes (189 million short tons) and support the CC&V Mineral Reserve life as outlined in the 2025 TRS. SSR Mining is continuing to evaluate other opportunities for future growth at CC&V, including additional resource development and exploration drilling across the property, as well as opportunities for fleet optimization and other potential operating improvements. 2025 CC&V Transaction Overview (8) 1 As announced in December 2024, consideration for the acquisition of CC&V was comprised of a $100 million upfront cash payment made on closing of the transaction on February 28, 2025, as well as up to $175 million in cash milestone-based payments. These milestone payments were separated into two tranches: $87.5 million will be payable upon final approval of the application to amend the CC&V Cresson Permit. This permit amendment was filed by Newmont on April 25, 2024, with the scope to extend the life of mine by adding 189 million short tons (171 million metric tonnes) of leach pad capacity through construction of Phase 4 of the Valley Leach Facility 2 ("VLF2") and Phase 6 of Valley Leach Facility 1 ("VLF1"), amongst other operational considerations including pit laybacks and road adjustments; and Up to $87.5 million will be payable upon obtaining regulatory relief relating to flow-related permitting requirements for the Carlton Tunnel, including steps taken to achieve the highest feasible alternative in relation to Carlton Tunnel water flow. Upon completion of an updated regulator-approved closure plan and in the event aggregate closure costs at CC&V exceed $500 million, SSR Mining will be responsible for funding 10% of the incremental closure costs while Newmont will be responsible for funding 90% of the incremental closure costs, either on an as-incurred basis or pursuant to a lump sum payment option. Reclamation and closure costs in the 2025 CC&V TRS total $517 million. Assumptions All figures are in U.S. dollars, unless otherwise noted. The gold price used in the calculation of Mineral Reserves was $1,700 per ounce and the gold price used in the calculation of Mineral Resource was $2,000 per ounce. The TRS is based on gold prices of: 2025 - $3,322/oz; 2026 - $3,793/oz; 2027 - $3,704/oz; 2028 - $3,396/oz; 2029 - $3,252/oz; 2030 - $3,130/oz; and long-term - $3,094/oz. All references to tonnage in this press release are in metric tonnes unless otherwise noted.