It will find any continuous sequence of 60 non-whitespace characters in $notice, and insert a space after it:
(..) creates a capture group. Because it's the first group it's referred to as \1 in the replacement string. Because the whole pattern is in the group it's not really needed here.
[..] create a character class, but because it contains only one meta-character, it's not really needed here, either.
\S matches any non-whitespace character
{60} is a quantifier; it means 'repeated 60 times'.
This code is equivalent to:
$notice = preg_replace("#\S{60}#i", "\\0 ", $notice);