Stock Symbol: SGF: TSX
SASKATOON, Aug. 11, 2016 /CNW/ - Shore Gold Inc. ("Shore" or
the "Company") reports that the unaudited results of Shore's
operations for the quarter ended June 30,
2016 will be filed today on SEDAR and may be viewed at
www.sedar.com once posted. A summary of key financial and operating
results for the quarter is as follows:
Overview
The Company's Star – Orion South Diamond
Project ("Project") is situated in the Fort à la Corne kimberlite
field in central Saskatchewan. The
Project includes the 100 percent Shore owned Star Diamond Project,
as well as Star West and the Orion South Kimberlite, which fall
within the adjacent Fort à la Corne Joint
Venture ("FALC-JV"). Shore has a 69 percent interest in the
FALC-JV and Newmont Canada FN Holdings ULC ("Newmont") has a 31
percent interest.
The Company is performing a 2016 core drilling program, to
further expand the internal stratigraphy of the Orion South and
Star Kimberlites extending and in-filling geological continuity
from the 2015 drilling programs (See SGF News Release dated
February 23, 2016). During the first
quarter of 2016, Shore announced the completion of five holes,
totaling 1,257.97 metres of drilling, on the Star West portion of
the Star Kimberlite located within the claims of the FALC-JV (See
SGF News Release dated March 29,
2016). This drilling on Star West aimed to delineate the
extent of all kimberlite units, particularly the lower unit, which
is high value Cantuar kimberlite. The Company also recently
announced the completion of the core drilling on the western margin
of the Orion South, which consisted of eight holes and totaling
1,592.75 metres of drilling (See SGF News Release dated
July 19, 2016). Shore also conducted
a geotechnical program to investigate the Lower Colorado shale
unit, which overlies the majority of the Star Kimberlite, and the
outer edges of the Orion South Kimberlite. The purpose of this
program was to augment the data collected during the 2011
Feasibility Study geotechnical programs with a more robust method
of collecting in situ rock mass characteristics through the use of
a downhole pressure meter.
Quarterly Results
For the quarter ended June 30, 2016, the Company recorded a net loss of
$1.9 million or $0.01 per share compared to a net loss of
$4.4 million or $0.02 per share for the same period in 2015. The
losses during these quarters were due to operating costs and
exploration and evaluation expenditures incurred by the Company
exceeding interest income earned on cash and cash equivalents and
short-term investments. Losses incurred during the quarter ended
June 30, 2016 were lower than the
same period in the previous year primarily due to lower exploration
and evaluation expenditures incurred.
Year to Date Results
For the six months ended
June 30, 2016, the Company recorded a
net loss of $3.3 million or
$0.01 per share compared to a net
loss of $5.6 million or $0.02 per share for the same period in 2015. The
losses were primarily due to ongoing operating costs and
exploration and evaluation expenditures incurred by the Company
exceeding interest income earned on cash and cash equivalents and
short-term investments. Losses incurred during the six months ended
June 30, 2016 were lower than the
same period in the previous year primarily as a result of lower
exploration and evaluation expenditures incurred.
Selected financial highlights include:
Condensed Consolidated
Statements of Financial
Position
|
As
at
June
30,
2016
|
As
at
Dec
31,
2015
|
Current
assets
|
$
1.7 M
|
$
4.3
M
|
Capital and other
assets
|
1.6
M
|
1.7
M
|
Current
liabilities
|
0.3
M
|
0.3
M
|
Premium on flow-through
shares
|
0.2
M
|
0.5
M
|
Long-term
liabilities
|
0.6
M
|
0.6
M
|
Shareholders'
equity
|
2.2
M
|
4.6
M
|
Consolidated Statements
of Loss and Comprehensive
Loss
|
Three Months
Ended June 30,
2016
|
Three Months
Ended June 30,
2015
|
Six
Months
Ended June
30,
2016
|
Six
Months
Ended June
30,
2015
|
Interest and other
income
|
$
0.0 M
|
$
0.0 M
|
$
0.0 M
|
$
0.0 M
|
Expenses
|
2.1
M
|
4.4
M
|
3.6
M
|
5.6
M
|
Flow-through premium
recognized in income
|
0.2
M
|
0.0
M
|
0.3
M
|
0.0
M
|
Net and comprehensive loss
for the period
|
(1.9)
M
|
(4.4)
M
|
(3.3)
M
|
(5.6)
M
|
Net loss per share for the
period (basic and diluted)
|
(0.01)
|
(0.02)
|
(0.01)
|
(0.02)
|
Condensed Consolidated
Statements of Cash Flows
|
Six
Months
Ended June
30, 2016
|
Six
Months
Ended June
30, 2015
|
Cash flows from operating
activities
|
$ (2.7)
M
|
$ (4.1)
M
|
Cash flows from investing
activities
|
0.0
M
|
0.0
M
|
Cash flows from financing
activities
|
0.0
M
|
1.9
M
|
Net decrease in
cash
|
(2.7)
M
|
(2.2)
M
|
Cash – beginning of
period
|
4.0
M
|
5.6
M
|
Cash – end of
period
|
1.3
M
|
3.4
M
|
Outlook
The 2016 core drilling programs are required
to further expand the internal stratigraphy of the Orion South and
Star Kimberlites extending and in-filling geological continuity
from the successful programs of 2015. The Company intends to update
the previous Feasibility Study with a revised mine plan, where new
technology is applied to more efficiently remove the sand and clay
of the overburden, in addition to the application of new technology
in the processing plant. Preliminary calculations suggest that such
an optimised Feasibility Study, with a new mine plan, can
positively change the economic model for the Project by increasing
the Mineral Resource estimate and reducing the pre-production
capital costs and schedule to diamond production.
In addition, the Company is proceeding with the environmental
assessment process and is continuing to seek opportunities for
development capital through participation in the Project by a third
party or a syndicate of investors.
As of August 11, 2016, the Company
had approximately $1.1 million in
cash and cash equivalents and short-term investments (excluding
$1.0 million in restricted cash). A
portion of the Company's cash and cash equivalents and short-term
investments will be used to complete the 2016 programs as well as
advance certain aspects of the Project, including the environmental
assessment process, as well as for general corporate matters.
Caution Regarding Forward-looking Statements
This news release contains forward-looking statements within the
meaning of certain securities laws, including the "safe harbour"
provisions of Canadian securities legislation and the United States
Private Securities Litigation Reform Act of 1995. The words "may,"
"could," "should," "would," "suspect," "outlook," "believe,"
"plan," "anticipate," "estimate," "expect," "intend," and words and
expressions of similar import are intended to identify
forward-looking statements, and, in particular, statements
regarding Shore's future operations, future exploration and
development activities or other development plans contain
forward-looking statements. Forward-looking statements in this news
release include, but are not limited to, statements related to the
Feasibility Study; statements relating to mineral resources and/or
reserves; statements related to the approval of the development of
the Star - Orion South Diamond Project; statements relating to
future development of the Star - Orion South Diamond Project and
associated timelines; the environmental assessment and permitting
process; the Company's intention to seek developmental capital
though participation by a third party or syndicate of investors;
Shore's objectives for the ensuing year, including the drill and
geotechnical programs and the re-optimisation of the open pit, the
optimisation of the Feasibility Study and the anticipated positive
change in the economic model for the Project.
These forward-looking statements are based on Shore's current
beliefs as well as assumptions made by and information currently
available to it and involve inherent risks and uncertainties, both
general and specific. Risks exist that forward-looking
statements will not be achieved due to a number of factors
including, but not limited to, developments in world diamond
markets, changes in diamond valuations, risks relating to
fluctuations in the Canadian dollar and other currencies relative
to the US dollar, changes in exploration, development or mining
plans due to exploration results and changing budget priorities of
Shore or its contractual partners, the effects of competition in
the markets in which Shore operates, the impact of changes in the
laws and regulations regulating mining exploration and development,
judicial or regulatory judgments and legal proceedings, operational
and infrastructure risks and the additional risks described in
Shore's most recently filed Annual Information Form, annual and
interim MD&A, news releases and technical reports.
Shore's anticipation of and success in managing the foregoing risks
could cause actual results to differ materially from what is
anticipated in such forward-looking statements.
Although management considers the assumptions contained in
forward-looking statements to be reasonable based on information
currently available to it, those assumptions may prove to be
incorrect. When making decisions with respect to Shore,
investors and others should not place undue reliance on these
statements and should carefully consider the foregoing factors and
other uncertainties and potential events. Unless required by
applicable securities law, Shore does not undertake to update any
forward-looking statement that may be made.
SOURCE Shore Gold Inc.