Alio Gold Inc (TSX:ALO) (NYSE AMERICAN:ALO) (“Alio
Gold” or the “Company”), today reported its fourth quarter and year
end 2017 results. Production results were previously released on
January 11, 2018. The Company will host a conference call at
11:00am EST today to discuss the results and the details of the
call can be found at the end of the release.
2017 Highlights and Outlook
- Gold production of 83,558 ounces at all-in sustaining cost1
(“AISC”) of $1,034/oz with gold production expected to increase to
between 90,000 and 100,000 ounces at $1,000 to $1,100/oz AISC in
2018.
- Net earnings of $11.9 million, or $0.30 per share.
- Cash flow from operating activities after changes in non-cash
working capital of $13.1 million.
- Invested $17.3 million in development activity at the Ana Paula
project, with $20 million in exploration and development
expenditure planned for 2018.
- Invested $20.9 million in revitalizing the San Francisco Mine,
predominantly in waste stripping, with sustaining capital expected
to decline to $2.5 to $3.0 million in 2018.
- Cash and investments of $51.6 million, working capital2 of
$61.7 million and no debt at December 31, 2017.
“2017 was a transformational year for the
Company,” said Greg McCunn, Chief Executive Officer. “On the
corporate level we rebranded the company, changed the management
team and strengthened the balance sheet with a C$50 million bought
deal financing. Operationally, the San Francisco mine required a
significant investment in waste stripping resulting in lower
production than 2016 and higher cost, particularly in Q4
2017. However, the main San Francisco pit is now open on
multiple mining faces and we are expecting between 90,000 and
100,000 gold ounces at AISC between $1,000 and $1,100/oz for 2018
with planned capital expenditures declining substantially to
between $2.5 and $3.0 million.
At our high-grade, high-margin Ana Paula
Project, we completed a pre-feasibility study in May 2017 and
continued to de-risk the project with Definitive Feasibility Study
work in the last half of the year. We have now commenced an
extensive exploration program including construction of an
exploration decline to allow access to the known extension of the
high-grade breccia system below the proposed open pit. During
the first quarter of 2018 we will be evaluating how best to
integrate the underground component into the existing project
development which has the potential to change the scope of the
project and the commencement of construction.”
Summarized Financial and Operating
Results
($ thousands, except where indicated) |
Three months ended December 31 |
Year ended December
31 |
2017 |
2016 |
2017 |
2016 |
Gold sold (ounces) |
|
16,067 |
|
|
26,012 |
|
83,211 |
|
100,480 |
Silver sold (ounces) |
|
7,873 |
|
|
12,994 |
|
38,911 |
|
56,417 |
Metal revenues |
$ |
20,593 |
|
$ |
30,977 |
$ |
105,162 |
$ |
123,873 |
Production costs, excl. depreciation and depletion |
$ |
16,862 |
|
$ |
18,840 |
$ |
69,818 |
$ |
74,717 |
Net earnings (loss) from operations |
$ |
(547 |
) |
$ |
6,927 |
$ |
22,066 |
$ |
37,356 |
Net earnings (loss) |
$ |
(2,853 |
) |
$ |
5,957 |
$ |
11,898 |
$ |
31,738 |
Net earnings (loss) per share, basic |
$ |
(0.06 |
) |
$ |
0.18 |
$ |
0.30 |
$ |
0.99 |
Cash flows from operating activities* |
$ |
(2,183 |
) |
$ |
9,993 |
$ |
13,070 |
$ |
34,082 |
By-product cash costs3 (per ounce) |
$ |
1,041 |
|
$ |
716 |
$ |
831 |
$ |
734 |
AISC1 (per ounce) |
$ |
1,357 |
|
$ |
910 |
$ |
1,034 |
$ |
853 |
Average realized gold price per gold ounce |
$ |
1,274 |
|
$ |
1,191 |
$ |
1,256 |
$ |
1,234 |
*after changes in non-cash working capital
Financial performance
Metal revenues for Q4 and the full year 2017
were $20.6 million and $105.2 million, respectively. This compares
to Q4 and full year 2016 metal revenues of $31.0 million and $123.9
million, respectively. The decrease in revenues was a result of
fewer ounces sold.
Production costs, which comprise the full cost
of operations excluding depreciation and depletion, form a
component of cost of sales and for Q4 and the full year 2017 were
$16.9 million and $69.8 million, respectively. This compares to Q4
and the full year 2016 production costs of $18.9 million and $74.7
million respectively. The decrease was primarily a result of the
increased deferred stripping.
Depletion and depreciation costs for Q4 and the
full year 2017 were $1.1 million and $4.6 million, respectively.
This compares to Q4 and the full year 2016 depletion and
depreciation costs of $2.8 million and $14.3 million, respectively.
The decrease was due to an improved mine plan, resulting in lower
unit-of-production depreciation rates.
Earnings from operations for Q4 2017 decreased
to a loss of $0.6 million and earnings from operations for the full
year 2017 was $22.1 million. This compares to Q4 and the full year
2016 net earnings of $6.9 million and $37.4 million, respectively.
The decrease was primarily due to a decrease in metal revenues due
to fewer ounces sold.
Corporate and administrative expenses for Q4 and
the full year 2017 were $3.2 million and $8.6 million,
respectively. This compares to Q4 and the full year 2016 of
$2.3 million and $7.6 million, respectively. The increase was
primarily a result of the increase in the non-cash component of
share-based payments.
Cash used in operating activities was $2.2
million in Q4 and for the full year 2017 cash provided by operating
activities was $13.1 million. This compares to cash provided by
operating activities in Q4 and the full year 2016 of $10.0 million
and $34.1 million, respectively. The decrease was primarily due
to:
- A decrease in metal revenues due to fewer ounces sold;
- Tax instalments being applied against VAT receivable;
- Slower VAT receivable collection;
- Building of ore in-process inventory.
Cash and cash equivalents, and short-term
investments at December 31, 2017, were $51.6 million. During the
quarter, the Company used $2.2 million from operations at the San
Francisco Mine (“Mine”), and at the Mine invested $6.6 million on
expansionary capital expenditures, $1.6 million on sustaining
capital expenditures, and $1.0 million on exploration and
evaluation projects. At the Ana Paula Project (“Ana Paula”) the
Company invested $8.1 million. Also, the Company received $2.8
million net proceeds from the warrant exercise.
During the full year 2017, cash provided by the
Mine was $13.1 million, and at the Mine invested $11.3 million on
expansionary capital expenditures, $7.5 million on sustaining
capital expenditures, and $2.1 million on exploration and
evaluation projects. At Ana Paula the Company invested $17.3
million.
Working capital at December 31, 2017, was $61.7
million.
San Francisco Mine (100%-owned)
The Mine produced 16,070 gold ounces and 7,873
silver ounces in Q4 2017 compared to 25,287 gold ounces and 12,994
silver ounces in Q4 2016. The decrease was primarily a result of
lower grade as mining was primarily from the early stages of Phase
5 of the San Francisco pit during Q3 2017.
For the full year 2017 the Mine produced 83,558
gold ounces and 38,911 silver ounces compared to 100,322 gold
ounces and 56,326 silver ounces. The decrease was primarily a
result of lower grade as mining was primarily from the early stages
of Phase 5 of the San Francisco pit, as mining of Phase 1 of the La
Chicharra pit was depleted.
The Mine’s by-product cash cost in Q4 and full
year 2017 was $1,041 per ounce and $831 per ounce, respectively.
This compares to Q4 and full year 2016 of $716 per ounce and $734
per ounce, respectively. AISC for Q4 and full year 2017 was
$1,357 per ounce and $1,034 per ounce, respectively. This compares
to Q4 and full year 2016 of $910 per ounce and $853 per ounce,
respectively. The increase in cash cost was due to fewer
ounces sold.
During the second half of 2017, key steps
occurred to revitalize the Mine. A significant waste
stripping campaign was undertaken to open-up the main pit in phase
5 and 6 which has resulted in increased mining flexibility and the
ability to deliver consistent ore feed to the leach pads. The
main pit is now open across multiple mining faces as the ramp-up of
pre-stripping reached sustainable and planned levels toward the end
of 2017. It is expected that all ore mining activity will be
in the main pit during 2018 with ore production from La Chicharra
Phase 2 commencing in 2019.
In the fourth quarter of 2017, opportunities to
reduce capital expenditures envisioned in the revitalization plan
for San Francisco were investigated. In particular, crushing
improvements which targeted improved metallurgical recovery were
put on hold to evaluate improvements in recovery obtainable by
improvements in blasting in the open pit during 2018. In December
2017 the Mine implemented a dual cut-off strategy which involves
trucking lower grade run-of-mine (“ROM”) ore to old heap leach pads
while higher cut off grade material is fed to the crusher.
ROM ore was placed under leach in January 2018 and as at February
13, 2018 approximately 219,000 tonnes of ROM ore grading an average
of 0.17 g/t gold had been stacked on historical leach pads 1 and 2
and stacking is continuing at a rate of 15,000-20,000 tonnes per
day. Recovery of gold from ROM ore is estimated to be 30%
during the first 120 days with 40% as the expected long-term
recovery rate. Approximately 10% of the San Francisco production is
expected to come from ROM leaching in 2018.
San Francisco 2018 GuidanceGold production is
expected to be between 90,000 and 100,000 ounces in 2018, with AISC
between $1,000 and $1,100 per ounce and total capital and mine site
exploration spending between $2.5 and $3.0 million. Gold production
in the first quarter of 2018 is expected to be the lowest for the
year with approximately 20% of the annual gold production expected
in Q1 2018 as the ROM material was placed under leach in late
January.
Ana Paula Project
(100%-owned)
ExplorationThe main objective of the current
exploration program at Ana Paula is to further delineate the known
extension of the high-grade breccia mineralization below the
proposed open pit. A 3,800 meter diamond drilling program was
initiated in January 2018 which consists of six drill holes of 600
to 700 metres each. The exploration contractor is working on a 24x7
basis with one drill rig and a second drill rig is expected late in
Q1 2018. Initial drill results are anticipated in Q1
2018.
The extension of the high-grade breccia system
below the proposed pit will be further tested from drilling
underground in Q3 2018. Currently, a 1,200 meter underground
decline is under construction which is being driven from a portal
site located in the adjacent valley from the proposed pit and
approximately 400 metres from the proposed mill site. It is
expected that the underground decline will be advanced sufficiently
by Q3 2018 to enable commencement of the first phase of the
underground diamond drill program. The drill program is expected to
confirm the continuity and shape of the high-grade gold
mineralization below the proposed pit that is hosted in the breccia
and it will also explore the gold mineralization indications at
depth hosted in hornfels skarn, typical of the Guerrero Gold Belt.
The underground drilling program proposed includes 55 diamond drill
holes (12,000 metres) and will include geochemical sampling and
assaying. Construction of the decline commenced in December 2017
with the mine portal site prepared and under construction. The
explosives magazine site has been completed and surface
infrastructure including offices and workshops have been installed
to support mining. A 100-person camp was ordered in December
2017 and is currently being fabricated off-site. The
components of the camp are expected to arrive in Q1 2018 and the
camp is expected to be fully functional in April 2018. The
permit for the camp site was received in February 2018.
A second exploration initiative planned for 2018
will test a high priority target 150 metres north (“north target”)
of the proposed open pit. Drilling on the north target is expected
to commence in Q2 2018. In addition, regional exploration work is
underway on the 56,000 hectare land package that includes an
airborne magnetic survey targeting further breccia or skarn
targets. This work will continue through 2018.
Definitive Feasibility Study (“DFS”)Significant
progress has been made at Ana Paula during the fourth quarter
including advancing the DFS. The Company is currently evaluating a
change in scope to the DFS to include an underground mine component
and incorporate results from underground exploration
drilling. The addition of the underground mine has the
potential to significantly enhance an already robust project for
several reasons:
- The current Proven and Probable
Mineral Reserves of 1.02Moz of gold (13.44Mt @ 2.36 g/t) within the
proposed pit includes 436koz gold (2.3Mt @ 5.9g/t) within the
high-grade breccia core. Previous drilling has confirmed this
mineralization extends approximately 300 metres below the proposed
pit. Increased drilling has the potential to add further Mineral
Resources below the proposed pit.
- The used processing plant
(Goldcorp’s old El Sauzal plant) that is expected to be used for
processing ore at Ana Paula previously operated at 6,000 tonnes per
day. The basis of the PFS for the project is 5,000 tonnes per
day of ore being mined from an open pit mine as the geometry of the
pit limits ore production. If additional ore can be provided
from the underground mine, the production profile and unit costs of
production could be enhanced.
- The current open pit design
envisions three distinct phases, with the final phase involving a
significant push-back of the pit walls to allow deeper mining from
surface. It is likely that the third phase of the proposed
pit could be more efficiently mined from underground, improving the
economics of the project by a reduction in waste movement from
surface.
- An underground mining operation
could also enhance the project by allowing for the tailings from
the ambient oxidation process (“AOX”) to be stored underground as
back-fill. This could eliminate the need for additional
surface tailings facilities and allow the inert flotation tailings
to be stored on surface in an unlined tailings storage
facility.
Additional metallurgical testwork is underway
and will continue in 2018 while the Company evaluates the existing
project scope. The testwork includes geochemical analysis to track
deportment of key impurities, including arsenic, through the
process and kinetic tests of leach tails. The testwork indicates
that a significant amount of arsenic is leached in the AOX. Arsenic
removal technology has been identified and tested. Comminution and
flotation optimization testwork was also completed, which indicated
that the ore hardness is similar to that indicated during the
pre-feasibility study (“PFS”).
A field program of geological mapping, borehole
drilling, and seismic evaluation to characterize the ground
conditions for the tailings, waste dump and plant site areas has
been completed. The geotechnical program identified that the ground
conditions in the area of the proposed PFS tailings dam embankment
area and the plant site areas are not favourable and a number of
trade-off studies were initiated to optimize locations for these
facilities. Additional trade-off studies were also initiated to
evaluate a number of tailings storage configurations to most cost
effectively manage arsenic bearing tailings materials to meet water
quality criteria. These studies and subsequent water balance and
quality modelling are in progress and further drilling is needed to
confirm hydrogeology in the tailings site.
Key offsite infrastructure for the Project is
also being engineered to a higher level of detail in the DFS
including power, road access and water supply. Power to the site is
readily available from multiple power sources adjacent to the mine
site and a System Impact Study and a Facilities Study are underway
to confirm the point of connection to grid power and the costs of
connection, respectively.
The site is currently accessed by a 7.5
kilometre road from the town of Cuetzala. This road has been
upgraded to improve road conditions and travel time. For the main
project construction access, a route accessing the project site via
existing roads from the north has been delineated. Minor upgrades
have been completed on the northern route to allow access to site
for the underground mining equipment, camp and support
facilities. Further road widening is underway and it is
expected that construction of bypass roads will be required for
permanent operation.
The site is estimated to have a negative water
balance and a hydrological study has identified a prospective water
source to the southwest of the Project site. Although initial
drilling programs did not locate sufficient volumes of water for
operations, a modified approach is expected to yield the required
supply.
Land and permittingThe permitting is well
advanced with the two main permits approved. In April 2017, the
Company received approval of the Environmental Impact Assessment
(“MIA”); and in September 2017 received approval of the Change of
Land Use Permit (“ETJ”). The ETJ covers the 370 hectares required
for the proposed open pit mine, waste storage, process plant and
the tailings storage facility. The land on which the Company
expects to construct the Ana Paula project is privately owned land.
The Company has acquired or signed 30-year lease terms for
approximately 79% of the land required for the Project and expects
to complete the balance of land acquisition and lease agreements in
time for construction.
FinancingAs the Company advances its engineering
studies, it has also commenced discussions on financing
alternatives for the Project including project or corporate debt.
It is expected that financing for between $90 to $100 million will
be arranged in conjunction with the completion of the DFS. A number
of indicative proposals were received and reviewed. The Company
will pursue a financing package with a balance of the lowest
overall cost, the least restrictive covenants, and the flexibility
to allow the Company to pursue its growth strategy.
Ana Paula 2018 GuidanceThe Company expects to
spend approximately $20 million on development expenditures at Ana
Paula in 2018 including feasibility study work, exploration
drilling and the construction of the underground decline.
Please refer to the Company's financial
statements, related notes and accompanying Management Discussion
and Analysis ("MD&A") for a full review of the San Francisco
operation and Ana Paula project. This can be viewed on the
Company’s website at www.aliogold.com, on SEDAR at
www.sedar.com and EDGAR at www.sec.gov.
Fourth quarter and full year 2017
conference call and webcast details:
Date: |
Wednesday, February 21,
2018 |
Time: |
11:00am (EST) |
Toll Free (US and
Canada): |
(855) 427-9509 |
Toll Free (Outside
North America): |
(210) 229-8822 |
Conference ID:
|
9983338 |
Webcast: |
https://edge.media-server.com/m6/p/dukja2jr |
Replay: |
To be available at
http://www.aliogold.com |
About Alio Gold
Alio Gold is a growth oriented gold mining
company, focused on exploration, development and production in
Mexico. Its principal assets include its 100%-owned and
operating San Francisco Mine in Sonora, Mexico and its 100%-owned
development stage Ana Paula Project in Guerrero, Mexico. Located
within the highly prospective Guerrero Gold Belt on 56,000 hectares
of underexplored land the Ana Paula Project is a high-grade, high
margin project currently in the definitive feasibility stage. An
underground decline to provide access for an exploration drill
program has been initiated. The drill program will target the
continuation of the high-grade gold mineralization below the
proposed pit which has the potential to significantly enhance the
robust economics of the project. The Company also has a portfolio
of other exploration properties, all of which are located in
Mexico.
Footnotes:
1) Non-GAAP Measure: All-in sustaining cost per gold ounce
The Company has adopted an all-in sustaining
cost per ounce on a by-product basis performance measure which is
calculated based on the guidance note issued by the World Gold
Council. Management uses this information as an additional measure
to evaluate the Company’s performance and ability to generate
cash.
All-in sustaining costs on a by-product basis
include total production cash costs, corporate and administrative
expenses, sustaining capital expenditures and accretion for site
reclamation and closure costs. These reclamation and closure costs
represent the gradual unwinding of the discounted liability to
rehabilitate the area around the Mine at the end of the mine life.
The Company believes this measure to be representative of the total
costs associated with producing gold; however, this performance
measure has no standardized meaning. As such, there are likely to
be differences in the method of computation when compared to
similar measures presented by other issuers.
The following table provides a reconciliation of
the all-in sustaining cost per gold ounce on a by-product basis to
the consolidated financial statements:
|
|
|
Three months ended Dec 31, |
|
|
Years ended Dec 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Production costs |
$ |
16,862 |
|
|
18,840 |
|
|
69,818 |
|
|
74,717 |
|
Corporate and administrative expenses (1) |
|
3,216 |
|
|
2,340 |
|
|
7,929 |
|
|
7,607 |
|
Sustaining capital expenditures(2) |
|
1,790 |
|
|
2,659 |
|
|
8,734 |
|
|
4,301 |
|
Accretion for site reclamation and closure |
|
58 |
|
|
22 |
|
|
230 |
|
|
67 |
|
Less: By-product silver credits |
|
(124 |
) |
|
(203 |
) |
|
(652 |
) |
|
(957 |
) |
All-in sustaining costs |
|
21,802 |
|
|
23,658 |
|
|
86,059 |
|
|
85,735 |
|
Divided by gold sold (ozs) |
|
16,067 |
|
|
26,012 |
|
|
83,211 |
|
|
100,480 |
|
All-in sustaining cost per gold ounce on a by-product
basis |
$ |
1,357 |
|
|
910 |
|
|
1,034 |
|
|
853 |
|
(1) Corporate and administrative expenses
adjusted for the three months and year ended December 31, 2017, to
remove termination benefits of $nil and $0.7 million,
respectively.
(2) Sustaining capital expenditures exclude
expansionary capital. Expansionary capital is defined by the
Company as deferred stripping costs determined using a life of
phase strip ratio, expansionary project expenditures related to
power and crusher upgrades, and drilling costs related to
improvement of resource estimates. During the three months and year
ended December 31, 2017 the Company spent:
- $6.3 million and $10.9 million for deferred stripping,
respectively;
- $0.3 million and $0.4 million for power and crusher upgrades,
respectively; and,
- $0.9 million and $1.0 million related to the drilling costs,
respectively.
2) Working capital is calculated by deducting current
liabilities from current assets.
3) Non-GAAP Measure: Cash cost per gold ounce and cash cost
per gold ounce on a by-product basis
Cash cost per gold ounce and cash cost per gold
ounce on a by-product basis are non-GAAP performance measures that
management uses to assess the Company’s performance and its
expected future performance. The Company has included the non-GAAP
performance measures of cash cost per gold ounce and cash cost per
gold ounce on a by-product basis throughout this document. In the
gold mining industry, these are common performance measures but
they do not have any standardized meaning. As such, they are
unlikely to be comparable to similar measures presented by other
issuers.
Management believes that, in addition to
conventional measures prepared in accordance with GAAP, certain
investors use this information to evaluate the Company’s
performance and ability to generate cash flow. Accordingly,
presentation of these measures is to provide additional information
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP.
The cash cost per gold ounce is calculated by
dividing the operating production costs by the total number of gold
ounces sold. The cash cost per gold ounce on a by-product basis is
calculated by deducting the by-product silver credits per gold
ounce sold from the cash cost per gold ounce. The following table
provides a reconciliation of the cash cost per gold ounce and cash
cost per gold ounce on a by-product basis to the consolidated
financial statements:
|
|
Three months ended Dec 31, |
|
|
Years ended Dec 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Production costs |
$ |
16,862 |
|
$ |
18,840 |
|
$ |
69,818 |
|
$ |
74,717 |
|
Divided by gold sold (ozs) |
|
16,067 |
|
|
26,012 |
|
|
83,211 |
|
|
100,480 |
|
Cash cost per gold ounce |
|
1,049 |
|
|
724 |
|
|
839 |
|
|
744 |
|
Less: By-product silver credits per gold ounce (1) |
|
(8 |
) |
|
(8 |
) |
|
(8 |
) |
|
(10 |
) |
Cash cost per gold ounce on a by-product basis |
$ |
1,041 |
|
$ |
716 |
|
$ |
831 |
|
$ |
734 |
|
(1) Management determined that silver metal
revenues, when compared to gold metal revenues, are immaterial and
therefore considered a by-product of the production of gold. For
the three months and year ended December 31, 2017, total by-product
silver credits were $0.1 million and $0.7 million, respectively
(three months and year ended December 31, 2016 - $0.2 million and
$1.0 million, respectively).
For further details on the calculation of
production costs, refer to the notes to the consolidated financial
statements. Cash cost per gold ounce and cash cost per gold ounce
on a by-product basis are not necessarily indicative of earnings
from operations or cash flow from operations as determined under
GAAP. Other companies may calculate these measures
differently.
Cautionary Note Regarding
Forward-Looking StatementsCertain statements and
information contained in this news release constitute
“forward-looking statements” within the meaning of applicable U.S.
securities laws and “forward-looking information” within the
meaning of applicable Canadian securities laws, which we refer to
collectively as “forward-looking statements”. Forward-looking
statements are statements and information regarding possible
events, conditions or results of operations that are based upon
assumptions about future economic conditions and courses of action.
All statements and information other than statements of historical
fact may be forward-looking statements. In some cases,
forward-looking statements can be identified by the use of words
such as “seek”, “expect”, “anticipate”, “budget”, “plan”,
“estimate”, “continue”, “forecast”, “intend”, “believe”, “predict”,
“potential”, “target”, “may”, “could”, “would”, “might”, “will” and
similar words or phrases (including negative variations) suggesting
future outcomes or statements regarding an outlook.
Forward-looking statements in news release
herein by reference include, but are not limited to statements and
information regarding: the Company's future mining activities,
including mining capacity, recovery, cash costs, production and
mine life; the Company's reserves and resources estimates; the
Company’s exploration and development plans, including anticipated
costs and timing thereof; the Company’s plans for growth through
exploration activities, acquisitions or otherwise; and expectations
regarding future maintenance and capital expenditures, working
capital requirements, the availability of financing and future
effective tax rates. Such forward-looking statements are based on a
number of material factors and assumptions, including, but not
limited to: that contracted parties provide goods or services in a
timely manner, that no unusual geological or technical problems
occur, that plant and equipment function as anticipated and that
there is no material adverse change in the price of gold, costs
associated with production or recovery. Forward- looking statements
involve known and unknown risks, uncertainties and other factors
which may cause actual results, performance or achievements, or
industry results, to differ materially from those anticipated in
such forward-looking statements. The Company believes the
expectations reflected in such forward-looking statements are
reasonable, but no assurance can be given that these expectations
will prove to be correct and you are cautioned not to place undue
reliance on forward-looking statements contained herein.
Some of the risks and other factors which could
cause actual results to differ materially from those expressed in
the forward- looking statements contained in this news release
herein by reference include, but are not limited to: risks and
uncertainties relating to the interpretation of drill results, the
geology, grade and continuity of mineral deposits and conclusions
of economic evaluations; results of initial feasibility,
pre-feasibility and feasibility studies, and the possibility that
future exploration, development or mining results will not be
consistent with the Company’s expectations; risks relating to
possible variations in reserves, resources, grade, planned mining
dilution and ore loss, or recovery rates and changes in project
parametres as plans continue to be refined; mining and development
risks, including risks related to accidents, equipment breakdowns,
labour disputes (including work stoppages and strikes) or other
unanticipated difficulties with or interruptions in exploration and
development; the potential for delays in exploration or development
activities or the completion of feasibility studies; risks related
to the inherent uncertainty of production and cost estimates and
the potential for unexpected costs and expenses; risks related to
commodity price and foreign exchange rate fluctuations; the
uncertainty of profitability based upon the cyclical nature of the
industry in which the Company operates; risks related to failure to
obtain adequate financing on a timely basis and on acceptable terms
or delays in obtaining governmental or local community approvals or
in the completion of development or construction activities; risks
related to environmental regulation and liability; political and
regulatory risks associated with mining and exploration; risks
related to the uncertain global economic environment; and other
factors contained in the section entitled “Risks and Uncertainties”
per above.
Although the Company has attempted to identify
important factors that could cause actual results or events to
differ materially from those described in the forward-looking
statements, you are cautioned that this list is not exhaustive and
there may be other factors that the Company has not identified.
Furthermore, the Company undertakes no obligation to update or
revise any forward-looking statements included in, or incorporated
by reference in, this news release if these beliefs, estimates and
opinions or other circumstances should change, except as otherwise
required by applicable law.
Source: ALO
For further information, please
contact:
Lynette GouldVice President, Investor
Relations604-638-8976lynette.gould@aliogold.com
Neither the TSX nor its Regulation Services
Provider (as that term is defined in the policies of the TSX) nor
the New York Stock Exchange MKT accepts responsibility for the
adequacy or accuracy of this news release.
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