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TMAC Resources Announces Q2 2019 Production of 38,520 Ounces

TORONTO--(BUSINESS WIRE)--

TMAC Resources Inc. (TMR.TO) (“TMAC” or the “Company”) is pleased to report second quarter 2019 results for production and certain operating metrics for the underground mine and processing plant. TMAC will release its financial results on August 1, 2019 as described below.

SECOND QUARTER 2019 PRODUCTION SUMMARY

  • Production: 38,520 ounces of gold produced
  • Sales: 37,730 ounces of gold sold
  • Mining: 1,160 tpd, with a grade of 11.4 g/t
  • Processing Plant: 1,740 tpd, with a feed grade of 9.5 g/t, and 80% recovery

Jason Neal, President and Chief Executive Officer of TMAC, stated, “In the second quarter we produced 38,520 ounces of gold, 1,530 ounces less than the first quarter, and year-to-date 78,570 ounces. In the processing plant, the gravity project is now complete with the second surge bin in full operation on July 1, 2019. We processed an average of 1,940 tonnes per day in May and June combined, including a 21-day period that averaged more than 2,000 tonnes per day to close out the quarter. We are now confident that the Plant has the capability to consistently process 2,000 tonnes per day on average, a key 2019 target achieved sooner than expected. We are, however, disappointed that we did not advance on another key 2019 target of 90% recovery and, in fact, experienced reduced second quarter recoveries of 80%. The cause for the reduced recovery included lower availability of the gravity concentrators due to commissioning challenges and, as a result, greater pressure was placed on resin performance. The amount of gold lost in increased solution tails from the resin column substantially accounts for the reduction in overall gold recovery versus the first quarter. Issues with resin performance at higher throughput had been anticipated but were compounded by poor gravity concentrator availability. The scavenger columns to treat solution tails, which have been in design since the beginning of the year, will be installed during the third quarter and are expected to materially improve concentrate treatment plant recovery.”

Jason Neal continued, “Our mining rate for the second quarter was lower at 1,160 tonnes per day, though at an improved mine grade of 11.4 grams of gold per tonne despite high-grade Doris North BTD East Limb ore moving into the second half of 2019 rather than the second quarter as originally expected. In the third quarter, our plan includes sequencing into higher stope availability with access to larger stopes of Doris Connector, and we should see a contribution of higher grade from the high-grade cut and fill area in the Doris North BTD Extension as well as the Doris North BTD East Limb. We also expect to process the first ore mined from the Madrid North Naartok East crown pillar surface mining in the third quarter. We did not put the maximum available grade into the Plant in the second quarter as we used low-grade stockpiles to manage the plant feed grade on a daily basis to be 9 to 11 grams of gold per tonne and ended the quarter with some high grade stockpiles.”

Jason Neal concluded, “Concurrently today, we released a quarterly exploration update. Underground diamond drilling on the Doris North BTD Extension continues to expand the high-grade mineralization a further 60 metres to the north and, perhaps more interesting, we also intersected mineralization with visible gold noted in the surface step-out drilling a further 325 metres north which has the potential to nearly double the current strike length of the BTD Extension zone. Assays for Doris surface drilling will be released after the third quarter. At Madrid North Suluk, drilling intersected 10.0 grams of gold per tonne over 3.0 metres, 14.3 grams of gold per tonne over 5.5 metres and 10.8 grams of gold per tonne over 9.3 metres down to the 660 metre level. This demonstrates the significant potential below the current Indicated Mineral Resource which is established down to approximately the 300 metre level. This is the deepest ever drill hole at the Suluk zone.”

QUARTERLY PRODUCTION RESULTS

 

Q2 2019

Q2 2018

H1 2019

H1 2018

Gold Production (oz)

38,520

23,140

78,570

43,790

Plant Throughput (tpd)

1,740

970

1,680

950

Feed Grade (g/t)

9.5

10.0

9.9

10.4

Recovery (%)

80

82

82

76

Mine Production (tpd)(1)

1,160

790

1,380

880

Mined Grade (g/t)(1)

11.4

9.6

10.7

8.8

(1) Includes incremental ore from development

SECOND QUARTER 2019 FINANCIAL RESULTS – CONFERENCE CALL AND WEBCAST

TMAC plans to release its second quarter 2019 financial results after market close on Thursday, August 1, 2019. Senior management will host a conference call and webcast to discuss these results on Friday, August 2, 2019 at 10:00 a.m. (ET).

Conference call and webcast details:

Friday, August 2, 2019 at 10:00 a.m. ET

Webcast

www.tmacresources.com

Toll Free (North America)

1-800-319-4610

Toronto

416-915-3239

International

604-638-5340

An archive of the webcast will be available on the Company’s website.

ABOUT TMAC RESOURCES INC.

TMAC Resources operates Hope Bay located in Nunavut, Canada. The property and operations are remote but not isolated, serviced by both a port and airstrip. Hope Bay is an 80 km by 20 km Archean greenstone belt that has been explored by BHP, Miramar, Newmont and TMAC over a period spanning more than 30 years. In that time, more than $1.5 billion of sunk expenditures have been spent in exploration and evaluation, surface infrastructure, and mine and process plant development. TMAC began producing gold in early 2017 from Doris, its first mine at Hope Bay, and processed gold at the Doris Plant which originally had nameplate capacity of 1,000 tonnes per day and expanded to 2,000 tonnes per day midway through 2018. Hope Bay has 4.8 million ounces of measured and indicated resources at Doris, Madrid and Boston deposits, largely within 350 metres of surface. There is potential to grow these established deposits considerably at depth, and then grow resources further through the prioritized exploration of the more than 90 other identified regional targets. TMAC is now permitted to produce from both Madrid and Boston.

FORWARD-LOOKING INFORMATION

This release contains “forward-looking information” within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. “Forward-looking information” includes statements that use forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “believe”, “continue”, “potential” or the negative thereof or other variations or comparable terminology.

“Forward-looking information” is not a guarantee of future performance and management bases forward-looking statements on a number of estimates and assumptions at the date the statements are made. Furthermore, such “forward-looking information” involves a variety of known and unknown risks, uncertainties and other factors, which may cause the actual plans, intentions, activities, results, performance or achievements expressed or implied. See “Risk Factors” in the Company’s Annual Information Form dated March 11, 2019 filed on SEDAR at www.sedar.com for a discussion of these risks.

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