VANCOUVER, BC / ACCESSWIRE / February 25, 2019 / FIORE GOLD LTD. (TSXV:F.V) (FIOGF) ("Fiore" or the "Company") announces preliminary production results from its 100%-owned Pan Mine in Nevada for the Company's first fiscal quarter ("Q1") of 2019, which ended December 31st, 2018.
- Gold production of 9,765 ounces, a 47% increase over Q1 2018
- Gold sales of 9,744 ounces at an average realized price of $1,232 per ounce
- Mined ore production of 15,196 ore tons per day with a stripping ratio of 1.49
- 17,116 man-hours worked in Q1 2019, achieving our goal of zero reportable incidents, zero reportable accidents, and zero lost-time injuries. As of December 31, 2018, the operation was at 957 consecutive days of attaining this Triple-Zero achievement.
The Company also announces that it is proceeding with the installation of a primary crushing circuit at the Pan Mine. Pan is currently a Run of Mine ("ROM") operation where blasted ore is hauled from the pit and placed directly on the leach pad. Blending rocky ore with more clay-rich ore ensures adequate permeability and stability of the leach pad. Metallurgical testing has shown that primary crushing will increase both the overall gold recovery and the rate of gold recovery. At the present ore mining rate of 14,000 tons per day, the crushing circuit will produce an estimated 6,000-7,000 additional gold ounces per year. Preliminary site preparation for the crusher is already underway and the crusher system is expected to be fully operational by the end of calendar Q2/2019.
Capital requirements for the crushing circuit, which total approximately US$3.5 million, will come in part from a US$2.3 million finance lease secured with First National Capital, LLC, subject to completion of final documentation.
Once the primary crushing circuit is installed and operating, rocky and clay-rich ore will be stockpiled near the crusher and fed to the primary crusher dump hopper at the currently required blend ratio. The ore will be fed and separated by a grizzly feeder with +4" material going through the primary jaw crusher and the undersize bypassing primary crushing. After the crushed ore is combined with the minus 4" bypassed ore, cement will be added for pH control and agglomeration. Barren solution will be utilized for agglomeration water and dust suppression at each conveyor transfer point. The crushed and blended ore will be stockpiled using a radial stacker. A loader and trucks will move material from the crushed stockpile to the cells before applying leach solution.
The installation of the crushing circuit will also improve the efficiency of our mining operation by allowing the mining contractor to haul ore to the crusher stockpiles rather than directly to the leach pad. Under the current ROM operation, ore must be delivered to the leach pad at the required rock and clay blending ratio, which can be challenging when ore mining is constrained due to rock and clay material availability, waste haulage requirements, blasting operations, and other factors. Field time studies conducted to evaluate the improved productivity of hauling to a stockpile and to estimate production from a stockpile to the leach pad showed significant improvement over the current ROM practices. Loader productivity improved by an estimated 14% and truck ore production increased up to 32%, primarily due to the shorter hauls and more efficient dumping on the stockpile.
Tim Warman, Fiore's CEO commented, "Pan had another excellent quarter and should continue to be a solid performer for many years to come, which is why we've made the decision, along with our funding partners First National Capital, to invest in the primary crushing circuit. In addition to higher gold production through increased gold recoveries, the crushing circuit will greatly improve the efficiency of the mine by allowing us to mine to stockpiles rather than having to blend rock and clay ore directly on the leach pad. Our analysis, and the decision to add the crushing circuit was based only on the current life of mine, so any additions to the mine life have the potential to significantly increase the economic benefits of the crusher."
The scientific and technical information relating to Fiore Gold's properties contained in this press release was approved by J. Ross MacLean, Fiore Gold's Chief Operating Officer and a "Qualified Person" under National Instrument 43-101.
Our corporate strategy is to grow Fiore Gold into a 150,000 ounce per year gold producer. To achieve this, we intend to:
- continue to grow gold production at the Pan Mine, while increasing the resource and reserve base
- advance exploration and development of the nearby Gold Rock project
- acquire additional production or near-production assets to complement our existing operations
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 that the Company will install a primary crushing circuit, estimates and expectation that the crushing circuit will produce additional gold ounces and increase gold recoveries, the crusher system will be in operation by calendar Q2/2019, the crushing circuit will improve the efficiency and productivity of mining operations, expectations regarding the Pan Mine's future performance, potential to extend the mine life at the Pan Mine, that First National Capital will finance a portion of the capital requirement for the crushing circuit, expectations for production at the Pan Mine, advancing exploration and development of the Gold Rock project, 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. There can be no assurances that the finance lease transaction with First National Capital will be closed and, even if all final documentation is executed, there can be no assurance that we will meet all the requirements to access the funds under the finance lease transaction. The purchase of the crusher system is subject to the availability of the equipment and performance of suppliers. 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; possibility that the Gold Rock Record of Decision will be appealed and that such an appeal may be successful; 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.
SOURCE: Fiore Gold Ltd.
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