TORONTO, Jan. 17, 2017 /CNW/ - Roxgold Inc. ("Roxgold" or
the "Company") (TSX.V: ROG) is pleased to announce its preliminary
fourth quarter and full year production results for 2016 and its
operational outlook for 2017. All amounts are in US dollars unless
otherwise indicated.
2016 Highlights
- Fourth quarter of 2016 was the first quarter of commercial
production for the Company
- 29,688 ounces of gold produced at an average mill feed grade of
15.5 grams per tonne ("gpt")
- Total production for 2016 from the first gold pour on
May 16th was 77,157 ounces
of gold
2017 Outlook
- Gold production is expected to be between 105,000 and 115,000
ounces in 2017
- Cost estimates for 2017:
- Cash operating cost per ounce produced1:
$445 - $490
- All-in sustaining cost1: $740
- $790 per ounce
- Capital expenditure: $24 million - $28
million
|
|
|
1
Cash operating cost per ounce produced and all-in sustaining
cost are non-IFRS measures with no standard definition under IFRS.
See the "Non-IFRS financial performance measures" section of the
Company's Q3 2016 MD&A.
|
"2016 was an extremely significant year for Roxgold. The Company
first poured gold in May, ahead of schedule and under budget. We
saw the successful ramp up of the Yaramoko gold mine and reached
several milestones including declaring commercial production on
October 1st," commented
John Dorward, Roxgold's President
and CEO. "77,157 Ounces of gold were poured in the calendar year at
an average mill feed grade of 15.5 grams per tonne. We look forward
to further success in 2017, and continuing the Company's track
record of meeting or exceeding expectations."
Key Production Metrics as of December
31, 2016
|
2016
Q22
|
2016 Q3
|
2016
Q43
|
2016
Total4
|
Total
Development
|
(metres)
|
1,134
|
1,784
|
1,947
|
6,739
|
Ore Mined
|
(tonnes)
|
22,267
|
56,401
|
72,561
|
183,707
|
Milled
|
(tonnes)
|
40,339
|
60,876
|
61,265
|
162,480
|
Head Grade
|
(g/t Au)
|
13.4
|
17.0
|
15.45
|
15.5
|
Gold
Recovery
|
(%)
|
97.5
|
98.7
|
98.9
|
98.5
|
Mill Operating
Time
|
(%)
|
95.8
|
96.9
|
93.7
|
95.8
|
Gold
Poured
|
(ounces)
|
14,482
|
32,987
|
29,688
|
77,157
|
Gold Sold
|
(ounces)
|
8,250
|
34,594
|
34,271
|
77,115
|
2
Q2 2016 was not a full quarter of operations. First gold was
poured May 16, 2016
|
3
Q4 2016 was first quarter of commercial
production.
|
4
2016 Totals are for the full calendar year.
|
2016 Operational Performance
In 2016, the Yaramoko gold mine commenced operations and has
performed steadily throughout. 183,707 tonnes of ore were extracted
from the underground mine as stoping operations were established to
Feasibility Study ("FS") levels throughout the year. Overall
dilution averaged 15.4% for the year, which compared favourably to
the Company's FS assumption of 20.5%.
Reconciliation for the project-to-date continues to exhibit good
global accuracy. The reconciled gold contained in ore mined to date
shows a positive comparison of +3.6% compared to the FS model
prediction due to higher grades encountered. Since the
establishment of stoping activities, ten stopes have been
completed.
The processing facility continues to operate well with high
availabilities and excellent metallurgical performance. In 2016,
162,480 tonnes of ore were processed. In the fourth quarter, the
plant essentially matched mine production rates and processed
61,265 tonnes at an average throughput of 666 tonnes per day
("tpd"), to produce 29,688 ounces of gold. In the same
period, the average gold recovery rate was 98.9% above the FS
assumption of 96.9%. The 2016 average recovery to date has been
98.5%.
The average realized gold price for the fourth quarter was
$1,208 per ounce and the realized
gold price for the year was $1,271
per ounce.
Roxgold's closing cash balance as at December 31, 2016 was approximately $69 million (unaudited).
Health and Safety in 2016
There were no lost time injuries ("LTI") during the fourth
quarter, with only one LTI occurring in the last 12 months. Since
then, there have been 1,850,000 LTI free hours worked to
December 31, 2016.
2017 Operational Outlook
Estimated
Costs
|
Cash operating
cost1
|
$445 -
$490
|
All-in sustaining
cost1
|
$740 -
$790
|
Capital
expenditure
|
$24 million - $28
million
|
Roxgold anticipates gold production at its Yaramoko gold mine to
be between 105,000 and 115,000 ounces in 2017.
It is also expected that the connection to the Burkina Faso high-voltage electricity network
will be completed and commissioned during the first quarter of
2017. This will contribute to reduced operating costs across the
operation. The existing diesel power station will remain on site as
a source of back-up power.
Qualified Persons
Paul Criddle, FAUSIMM, Chief
Operating Officer for Roxgold Inc., and Craig Richards P. Eng, Principal Mining Engineer
for Roxgold Inc., are Qualified Persons within the meaning of
National Instrument 43-101, and have verified and approved the
technical data disclosed in this press release.
About Roxgold
Roxgold is a gold mining company with its key asset, the high
grade Yaramoko Gold Mine, located in the Houndé greenstone region
of Burkina Faso, West Africa. Roxgold trades on the TSX Venture
Exchange under the symbol ROG and as part of the Nasdaq
International Designation program with the symbol OTC: ROGFF.
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release."
These statements are based on information currently available
to the Company and the Company provides no assurance that actual
results will meet management's expectations. In certain cases,
forward-looking information may be identified by such terms as
"anticipates", "believes", "could", "estimates", "expects", "may",
"shall", "will", or "would". Forward-looking information contained
in this news release is based on certain factors and assumptions
regarding, among other things, the estimation of mineral resources
and mineral reserves, the realization of resource estimates and
reserve estimates, gold metal prices, the timing and amount of
future exploration and development expenditures, the estimation of
initial and sustaining capital requirements, the estimation of
labour and operating costs, the availability of necessary financing
and materials to continue to explore and develop the Yaramoko Gold
Project in the short and long-term, the progress of exploration and
development activities, the receipt of necessary regulatory
approvals, including the approval of the TSX Venture Exchange for
the balance of the AUMS Mining Contract Option, and assumptions
with respect to currency fluctuations, environmental risks, title
disputes or claims, and other similar matters. While the Company
considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect.
Although the Company believes the expectations expressed in
such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future
performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include: changes in market conditions,
unsuccessful exploration results, changes in the price of gold,
unanticipated changes in key management personnel and general
economic conditions. Mining exploration and development is an
inherently risky business. Accordingly, actual events may differ
materially from those projected in the forward-looking statements.
This list is not exhaustive of the factors that may affect any of
the Company's forward-looking statements. These and other factors
should be considered carefully and readers should not place undue
reliance on the Company's forward-looking statements. The Company
does not undertake to update any forward-looking statement that may
be made from time to time by the Company or on its behalf, except
in accordance with applicable securities laws.
SOURCE Roxgold Inc.