FIORE GOLD LTD. (TSXV: F) (OTCQB: FIOGF) (“Fiore” or the “Company”) announces preliminary production results from its 100% owned Pan Mine in Nevada for the Company’s second fiscal quarter (“Q2”) ended March 31, 2018.
- Mined ore production in fiscal Q2 slightly ahead of budget at 14,600 tpd, with the stripping ratio slightly under budget at 1:1
- Gold production of 8,695 ounces, a 130% increase over the preceding quarter
- Gold sales of 8,673 ounces
- Gold in inventory on the leach pad has remained constant over the quarter, with a positive impact on working capital
- Interim results from the 10,000-ton run-of-mine vs crushed ore test cells showing significantly higher indicated gold recovery over a shorter period for the crushed ore. A decision on the potential crusher addition will be made in mid-2018
Total gold production for fiscal 2018 (October 2017 through September 2018) is anticipated to be near the lower end of our guidance range of 35-40,000 oz, with gold production weighted towards the second half of FY2018 as higher-grade ore is mined.
Tim Warman, Chief Executive Officer of Fiore, commented: “The second quarter of FY2018 was a record quarter for us in terms of gold production, and we’re looking forward to continuing strong performance over the remainder of the fiscal year. With the mine operating at its planned capacity for the past two quarters we’re seeing the leach pads working at a steady state, with no change in gold inventory over the past quarter and a positive impact on working capital. Finally, the initial results from the two test cells on the leach pad suggest that adding a crushing circuit should have a very positive impact on recoveries that significantly outweighs the added operating costs and the cost of capital.”
Exploration work aimed at increasing the resource and reserve base at Pan is underway (refer to PR of February 27, 2018), with drilling planned to continue throughout the remainder of 2018 at both Pan and the adjacent Gold Rock project. Initial results have been encouraging, identifying ore-grade intercepts outside the current pit shell, both at depth and laterally.
At Gold Rock, the Final Environmental Impact Statement (“FEIS”) is working its way through the Washington DC office of the Bureau of Land Management toward publication in the US Federal Register. The process to publish the FEIS is anticipated to be completed shortly, with the Record of Decision (“ROD”) to follow within 45 days of publication.
Leach Pad Test Cells
In early 2018, Fiore constructed and placed under leach two approximately 10,000-ton leach cells consisting of material pulled from the same pair of North Pit and South Pit run-of-mine (“ROM”) stockpiles. One leach cell was placed as ROM material and the second was crushed to nominal 80% minus 1 inch before placement. While both pads are still under leach, the crushed ore pad is clearly showing a significantly higher indicated gold recovery over a shorter period than is the ROM pad. We anticipate resting the test pads soon and then re-activating the solution application to assess the secondary leach curves. The gold-bearing pregnant solution coming off each pad is monitored daily, and analyzed in the mine’s grade-control lab, with check samples sent to an outside laboratory. Results from the test cells will be completed and analyzed in time for a decision to proceed with the crushing system by mid-2018. If approved, the crushing system could be in operation by early 2019.
As the testing proceeds, we are also undertaking detailed engineering of the potential crushing circuit to confirm capital and operating cost and finalize equipment selection.
Our corporate strategy is to grow Fiore Gold into a 150,000 ounce per year gold producer. To achieve this, we intend to:
- grow gold production at the Pan Mine from a planned 35-40,000 ounces in fiscal 2018 to between 40-50,000 ounces per year by fiscal 2019
- advance exploration and development of the nearby Gold Rock project
- acquire additional production or near-production assets in Nevada and surrounding states
The scientific and technical information relating to Fiore Gold’s properties contained in this press release was approved by Ross MacLean, Fiore Gold’s Chief Operating Officer and a “Qualified Person” under National Instrument 43-101.
On behalf of FIORE GOLD LTD.
Chief Executive Officer
1 (416) 639-1426 Ext. 1
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward Looking Statements
This news release contains “forward-looking statements” and “forward looking information” (as defined under applicable securities laws), based on management’s best estimates, assumptions and current expectations. Such statements include but are not limited to, statements with respect to the expected results of the Leach Pad Test Cells, future recoveries and timing recoveries for crushed ore, benefits and costs of adding a crushing circuit, timing of a decision on potential crusher addition, anticipated gold production for fiscal 2018, expectations that the Company will continue strong performance over the remainder of the fiscal year, continuing the drilling program, that drilling program will increase the resource and reserve base at Pan, planned drilling and development at Gold Rock, expected drill program results, publication of the FEIS and receipt of the ROD at Gold Rock, expectation to grow gold production at Pan for fiscal 2018 and 2019,goal to become a 150,000 ounce producer, goal to acquire additional production or near production assets, and other statements, estimates or expectations. Often, but not always, these forward-looking statements can be identified by the use of forward-looking terminology such as “expects”, “expected”, “budgeted”, “targets”, “forecasts”, “intends”, “anticipates”, “scheduled”, “estimates”, “aims”, “will”, “believes”, “projects” and similar expressions (including negative variations) which by their nature refer to future events. By their very nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Fiore Gold’s control. These statements should not be read as guarantees of future performance or results. Forward looking statements are based on the opinions and estimates of management at the date the statements are made, as well as a number of assumptions made by, and information currently available to, the Company concerning, among other things, anticipated geological formations, potential mineralization, future plans for exploration and/or development, potential future production, ability to obtain permits for future operations, drilling exposure, and exploration budgets and timing of expenditures, all of which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Fiore Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to vary materially from results anticipated by such forward looking statements include, but not limited to, risks related to the Pan Mine performance, risks related to the company’s limited operating history; risks related to international operations; risks related to general economic conditions, actual results of current or future exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates; increases in market prices of mining consumables; possible variations in ore reserves, grade or recovery rates; uncertainties involved in the interpretation of drilling results, test results and the estimation of gold resources and reserves; failure of plant, equipment or processes to operate as anticipated; the possibility that capital and operating costs may be higher than currently estimated; the possibility of cost overruns or unanticipated expenses in the work programs; availability of financing; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of exploration, development or construction activities; the possibility that required permits may not be obtained on a timely manner or at all; changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Fiore Gold operates, and other factors identified in Fiore Gold’s filing with Canadian securities authorities under its profile at www.sedar.com respecting the risks affecting Fiore and its business. Although Fiore has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking statements and forward-looking information are made as of the date hereof and are qualified in their entirety by this cautionary statement. Fiore disclaims any obligation to revise or update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements or forward-looking information contained herein to reflect future results, events or developments, except as require by law. Accordingly, readers should not place undue reliance on forward-looking statements and information.
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Source: Fiore Gold Ltd. (TSX Venture:F, FWB:2FO, OTCQB:FIOGF)
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