Stock Symbol: SGF: TSX
SASKATOON, Nov. 10, 2016 /CNW/ - Shore Gold Inc. ("Shore" or
the "Company") reports that the unaudited results of Shore's
operations for the quarter ended September
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 performed a 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. 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 announced the completion of the core
drilling on the western margin of Orion South, which consisted of
eight holes and totaling 1,592.75 metres of drilling (See SGF News
Release dated July 19, 2016). During
the third quarter of 2016, Shore announced that it has successfully
completed significant aspects of geotechnical investigations and
other test work on the Project (See SGF News Release dated
September 26, 2016).
Quarterly Results
For the quarter ended September 30, 2016, the Company recorded a net
loss of $1.1 million or $0.00 per share compared to a net loss of
$2.0 million or $0.01 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
September 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 nine months ended
September 30, 2016, the Company
recorded a net loss of $4.4 million
or $0.02 per share compared to a net
loss of $7.7 million or $0.03 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 nine months
ended September 30, 2016 were lower
than the same period in the previous year primarily as a result of
lower exploration and evaluation expenditures incurred.
During the quarter ended September 30,
2016, the Company completed a private placement for
aggregate gross proceeds of $1.0
million (see SGF News Release dated September 21, 2016). In addition, the Company
recently completed a private placement for aggregate gross proceeds
of $2.5 million (see SGF News Release
dated November 9, 2016).
Selected financial highlights include:
Condensed
Consolidated Statements of Financial Position
|
As
at
September
30,
2016
|
As
at
December
31,
2015
|
Current
assets
|
$
1.8 M
|
$
4.3 M
|
Capital and other
assets
|
1.5
M
|
1.7
M
|
Current
liabilities
|
0.3
M
|
0.3
M
|
Premium on
flow-through shares
|
0.1
M
|
0.5
M
|
Long-term
liabilities
|
0.6
M
|
0.6
M
|
Shareholders'
equity
|
2.3
M
|
4.6
M
|
Consolidated
Statements of Loss and Comprehensive Loss
|
Three Months
Ended
September 30,
2016
|
Three Months
Ended
September 30,
2015
|
Nine
Months
Ended
September 30, 2016
|
Nine
Months
Ended
September 30, 2015
|
Interest and other
income
|
$
0.0 M
|
$
0.0 M
|
$
0.0 M
|
$
0.0 M
|
Expenses
|
1.2
M
|
2.0
M
|
4.8
M
|
7.7
M
|
Flow-through premium
recognized in income
|
0.1
M
|
0.0
M
|
0.4
M
|
0.0
M
|
Net and comprehensive
loss for the period
|
(1.1) M
|
(2.0) M
|
(4.4) M
|
(7.7) M
|
Net loss per share
for the period (basic and diluted)
|
(0.00)
|
(0.01)
|
(0.02)
|
(0.03)
|
Condensed
Consolidated Statements of Cash Flows
|
Nine
Months
Ended
September 30,
2016
|
Nine
Months Ended
September 30,
2015
|
Cash flows from
operating activities
|
$ (3.7)
M
|
$ (6.9)
M
|
Cash flows from
investing activities
|
0.1
M
|
0.0
M
|
Cash flows from
financing activities
|
1.0
M
|
2.1
M
|
Net decrease in
cash
|
(2.6) M
|
(4.8) M
|
Cash – beginning of
period
|
4.0
M
|
5.6
M
|
Cash – end of
period
|
1.4
M
|
0.8
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 updated Feasibility Study can positively change the economic
model for the Project by increasing the Mineral Reserve 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 November 10, 2016, the
Company had approximately $3.6
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 work required for an updated Feasibility Study, 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 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 optimization of the feasibility study,
anticipated capital and operating cost savings and the anticipated
positive change in the economic model for the Project; the aim of
Shore to undertake additional studies and the potential updating of
the Feasibility Study.
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.