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Showing posts with label Gold Exploration. Show all posts
Showing posts with label Gold Exploration. Show all posts

Friday, June 6, 2014

Gold discovery at Prospect Valley BC spurs field work


Berkwood Announces 2014 Prospect Valley Gold Property
Field Program Plans

Berkwood Resources Ltd. (TSX-V: BKR) (the “Company” or “Berkwood”) is pleased to announce plans for summer fieldwork on the Prospect Valley Gold Property near Merritt, British Columbia, Canada.

In 2013 geochemical sampling work on the property confirmed the continuity of the main soil anomaly and extended its length to 5000 metres indicating the large extent of the mineralizing system. See the updated geochemistry map below or click here.  To date, several areas of gold mineralization have been identified on the 10,871 Ha Prospect Valley Gold Property.  The majority of historic drilling has taken place in the centre of the claim block, along the Discovery Trend.  This drilling has outlined an extensive low grade epithermal gold system with indications of potential for additional and higher grade mineralization. The system remains open for expansion and other known zones of gold mineralization have yet to be drilled (see Berkwood news release dated January 25, 2012 for details).



The focus of this year’s work will be in preparation for a drill program to test potentially higher grade gold mineralization within the core of the Discovery Trend epithermal system. Although subject to financing, current market conditions have reduced drill contract rates and as such Berkwood feels this drilling can be carried out in a low cost, effective manner. Berkwood field crews will be visiting the property in the coming days to assess the condition of access roads, field equipment, company vehicles and the field base camp.

Brian Buchanan, CEO and Director of the Company states: "We are pleased to be in a position to conduct fieldwork at Prospect Valley. This is an important project in regards to Berkwood’s growth and Management is very optimistic about what this year’s work program could provide, given the large extent of the gold system defined to date.”

George Gorzynski, P.Eng., a Director of Berkwood and a Qualified Person under the definition of Canadian National Instrument 43-101, approved the technical information in this new release and is monitoring the field programs.  


About Berkwood Resources:

Berkwood also holds a 100% interest in the Lac Guéret East Graphite Property, located in northeastern Quebec.  The 3,837 Ha Lac Guéret East Graphite Property consists of 71 claims and is adjacent to the eastern boundary of Mason Graphite’s advanced Lac Guéret Project.

If you are not currently on the Berkwood Resources email list, please visit our website by clicking here to opt-in to the list. The Company will send out regular updates and news releases to everyone who asks to be on the list.

For additional information please contact:

Karim Sayani, Corporate Communications
Tel: (604) 662-7455 E-mail: karim@berkwoodresources.com

Tom Steer, Corporate Development
Tel: (604) 681-7455 E-mail: tomsteer@berkwoodresources.com


On Behalf of Berkwood Resources

Brian Buchanan, President and Director


This Berkwood News Release contains certain "forward-looking" statements and information relating to Berkwood that are based on the beliefs of Berkwood's management as well as assumptions made by and information currently available to Berkwood's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, relationships with strategic partners, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. Except as required by law, Berkwood does not assume the obligation to update any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Friday, February 21, 2014

San Gold Announces a 60% Increase in Mineral Reserves

San Gold CorporationSan Gold Corporation

TSX : SGR
OTCQX : SGRCF


February 20, 2014 20:00 ET



WINNIPEG, MANITOBA--(Marketwired - Feb. 20, 2014) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today announced an updated mineral reserve and resource estimate for its Rice Lake Mining Complex.

During 2013, extensive definition drilling and detailed mine planning to integrate the Hinge, 007 and Rice Lakes mines resulted in an increase in proven and probable mineral reserves to 2.7 million tons grading 5.24 grams per tonne containing 405,400 ounces of gold as of December 31, 2013. This is a 60% increase from the proven and probable mineral reserves as of December 31, 2012. 

"I am very pleased with the progress made by our technical team over the past year. The increase in reserves has allowed us to complete five years of detailed mine planning, thereby providing improved operational flexibility. Our drilling in 2014 will be primarily from underground locations in closer proximity to known ore bodies. We expect to achieve a further increase in the mineral reserve as the year progresses through the conversion of our large inferred mineral resource," said Ian Berzins, San Gold's President, CEO and Chief Operating Officer.
Notes to Mineral Reserve and Resource Estimate Table
  • Mineral reserve and resource estimates are calculated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, 2010.
  • Tonnage and ounce estimates have been rounded to the nearest hundred.
  • Proven and probable mineral reserves are included in the measured and indicated mineral resources.
  • The mineral reserve estimate is based on a gold price of US$1,250 per ounce.
  • A cut-off grade of 3.65 g/tonne gold was used for estimating mineral reserves. A cut-off grade of between 2.74 and 3.43 g/tonne gold was used for estimating mineral resources.
  • Inferred mineral resources are not in the current mine plan and therefore do not have demonstrated economic viability.
The estimate of mineral resources was carried out under the supervision of Michael Michaud, Vice-President
of Exploration. The estimate of mineral reserves was carried out under the supervision of Rolando Jeria, Chief Engineer. Mr. Michaud and Mr. Jeria are Qualified Persons as defined by NI 43-101, and have reviewed and approved this news release.

About  San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Rice Lake Mining Complex near Bissett, Manitoba. The Company employs more than 420 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".

Cautionary Note
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics, and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.

Contact Information


  • San Gold Corporation
    Ian Berzins
    President, CEO, and Chief Operating Officer
    Toll Free: 1 (855) 585-4653

    San Gold Corporation
    Tim Friesen
    Investor Relations
    Toll Free: 1 (855) 585-4653
    sgr@sangold.ca
    www.sangold.ca

Wednesday, November 13, 2013

Brigus reports 49% increase in Gold production output and 40% reduction in "all in" costs of production

Brigus Gold Reports Third Quarter Financial Results 

Brigus Gold Corp. ("Brigus" or the "Company") (NYSE MKT: BRD) (TSX: BRD)
 today reported financial results for the third quarter ended September 30, 2013.

"Brigus delivered strong operating and financial results during quarter three. The Black Fox mine achieved record gold production while costs on a per ounce basis were at an all-time low, and lower than guidance.Moving forward, our top priorities continue to be safe production, cost management, and disciplined capital allocation," commented Wade Dawe, Brigus' Chairman and Chief Executive Officer. "I am proud of our team's operational performance and the fact that our workforce has worked over 1,400 days without a lost time incident."

Third Quarter 2013 Financial Highlights
-- Sold 28,344 ounces of gold, a 49% increase over Q3 2012
-- Cash costs of $617 and All in Sustaining Costs (AISC) of $992 per ounce of gold sold (40% reduction)
-- Made long-term debt repayments of $4.9 million
-- Revenue of $36.9 million, a 22% increase over Q3 2012
-- Adjusted cash flow from operations of $15.5 million, a 38% increase over Q3 2012
Third Quarter 2013 Operational Highlights
-- Produced 27,174 ounces of gold, a 39% increase over Q3 2012
-- Processed 207,559 tonnes of ore (2,256 tonnes per day) at 4.34 grams per tonne and a 94% recovery
-- Averaged 811 tonnes per day from underground at an average grade of 5.69 grams per tonne


During the third quarter of 2013, income from mining operations was $5.9 million. AISC per ounce for the third quarter was $992 per ounce, compared to $1,649 in the third quarter of 2012, a decline of $657 or 40%. Cash costs per ounce decreased by 15% from $728 per ounce in Q3 2012 to $617 per ounce in Q3 2013.
During the quarter the Company's cash balance increased to $21.1 million, compared to $20.9 million at the end of the previous quarter, while the balance sheet was strengthened as long term debt was reduced. Income from mining operations on a year-to-date basis totalled $18.8 million, an increase of $4.7 million compared to the same period in 2012.The increase relates to the 47% increase in ounces sold and an 11% decrease in cash costs, offset by a 10% decrease in the average realized gold price and 58% increase in depreciation and amortization expense. 

Total liabilities decreased by $23.7 million, from $188.7 million as of December 31, 2012, to $165.0 million as of September 30, 2013, and shareholders' equity increased from $232.6 million to $243.8 million year to date.
Cost management continues to be a key focus for the Company.The Company expects capital spending for mine development and other sustaining capital to total $38.5 million in 2013, down from the original estimate of $41.5 million in Q1 2013. The Company reviewed its long-term capital requirements and is forecasting total capital spending on mine development and sustaining capital of $20 - $25 million in 2014.
During the quarter, the Company announced an updated independent NI 43-101 resource estimate for the 147, Contact, and Grey Fox South zones. The resource estimate included a constraining pit shell which had not been included in the previous resource estimates.Highlights include a total of 507,400 indicated ounces (255,000 relating to the underground and 252,400 relating to the open pit) and 228,600 inferred ounces (184,800 relating to the underground and 43,800 relating to the open pit). The underground and open pit cut-off grades were set at 2.84 grams per tonne and 0.72 grams per tonne, respectively. The 147, Contact and Grey Fox South zones remain open for future expansion and drilling continues.
At Grey Fox, Brigus completed an additional 21,458 metres (46 drill holes) of drilling since the June 30th cut-off date and initiated additional metallurgical studies to increase gold recoveries from the 83 percent threshold, as previously reported. Initial results from the ongoing test work have been favourable. The Company is now planning to release a Preliminary Economic Assessment for Grey Fox during the second quarter of 2014.
Exploration Subsequent to quarter end, the Company released two high grade gold intersections from underground drilling at Black Fox. Hole 645-34-W assayed 18.09 grams per tonne gold over 37.80 metres, including 39.45 grams per tonne gold over 10.35 metres. This 37.80 metre mineralized intercept is from a drill interval of 316.9 to 354.7 metres, and remains open as the last sample at 354.7 metres graded 15.34 grams per tonne gold. Therefore, the full thickness of this high grade intercept is unknown at this time. Hole 645-34-W intersected high grade mineralization 30 metres to the west of hole 645-01-W, which assayed 40.71 grams per tonne gold over 26.75 metres, including 103.20 grams per tonne gold over 8.35 metres.In light of these positive exploration results, we have recommenced underground exploration drilling at Black Fox. 12 to 15 holes are planned and will target this new high grade zone.
Third Quarter Webcast and Conference Call A webcast and conference call will be held on Wednesday, November 13th at noon Atlantic Time (11:00 a.m. Eastern Time).
Analysts and other interested parties wanting to participate in the call should dial 1-877-407-8133 (international 201-689-8040) at least 10 minutes prior to the start of the call. No pass code is required. The teleconference will be recorded. If you are unable to join the teleconference live, you can dial for playback, toll-free at 1-877-660-6853 (international 201-612-7415), please use conference ID 100499. The event will be archived and available for replay until midnight on November 27, 2013. The teleconference will also be accompanied by a presentation made available on the Company's website at www.brigusgold.com.
This release should be read in conjunction with Brigus' 2013 third quarter Financial Statements and Management's Discussion and Analysis report at www.brigusgold.com. Brigus' unaudited 2013 third quarter Financial Statements and Management's Discussion and Analysis have been filed with Canadian securities regulators (available at www.sedar.com) and with the U.S Securities and Exchange Commission (available at www.sec.gov). Brigus shareholders may obtain a copy of the financial documents free of charge upon request to the Company.
About Brigus Gold Brigus is a growing gold producer committed to maximizing shareholder value through a strategy of efficient production, targeted exploration and select acquisitions. The Company operates the wholly owned Black Fox Mine and Mill in the Timmins Gold District of Ontario, Canada. The Black Fox Complex encompasses the Black Fox Mine and adjoining properties in the Township of Black River‐Matheson, Ontario, Canada. Brigus also owns the Goldfields Project located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In the Dominican Republic, Brigus has signed an agreement to sell its remaining interests in three mineral exploration projects. In Mexico, Brigus owns the Ixhuatan Project located in the state of Chiapas.
Cautionary Note to U.S. Investors Concerning Estimates of Mineral Resources This news release uses the term mineral "resources". The Company advises U.S. investors that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission ("SEC") Industry Guide 7 and are generally not permitted to be used in reports and registration statements filed with the SEC. The SEC generally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in‐place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.
Cautionary and Forward‐Looking Statements Statements contained in this news release, which are not historical facts, are forward‐looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward‐looking statements. All statements regarding the ability of the Company to achieve its production, total cash costs, steady state annual production and mining rate estimates; estimated average gold grades for the open pit and underground operations; increase in gold production; increase in profitability; exploration drill results and resource additions, are forward‐looking statements and estimates that involve various risks and uncertainties. This forward‐ looking statements include, or may be based upon, estimates, forecasts, and statements as to management's expectations with respect to, among other things, the outcome of legal proceedings, the issue of permits, the size and quality of the Company's mineral resources, progress in development of mineral properties, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, and the financial results of the Company.
Important factors that could cause actual results to differ materially from these forward‐looking statements include environmental risks and other factors disclosed under the heading "Risk Factors" in Brigus' most recent Annual Information Form and Management Discussion and Analysis filed under the Company's name at www.sedar.com and annual report on Form 40F filed with the United States Securities and Exchange Commission at www.sec.gov as well as elsewhere in Brigus' documents filed from time to time with the Toronto Stock Exchange, the NYSE Amex Equities, the United States Securities and Exchange Commission and other regulatory authorities. All forward‐looking statements included in this news release are based on information available to the Company on the date hereof. The Company assumes no obligation to update any forward‐looking statements, except as required by applicable securities laws.
SOURCE Brigus Gold Corp.

Monday, November 4, 2013

San Gold Announces High Grade Drill Results at Depth, Nov 4th 2013

San Gold CorporationSan Gold Corporation

TSX : SGR
OTCQX : SGRCF




November 04, 2013 08:00 ET



WINNIPEG, MANITOBA--(Marketwired - Nov. 4, 2013) - San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today provided updated drilling results from its underground drilling program on 26 Level of the Rice Lake Mine.

Initial results, obtained from the newly established 6140 drill station located approximately 1,170 metres below surface at the eastern extent of the 710 zone, demonstrate robust grades and widths that are accessible from new 26 level development. These zones are located immediately to the hanging wall of the 710 zone and appear to be part of the 007 system at depth. Highlights of this drilling include drill hole 614-13-010 which returned 45.3 g/tonne over 6.1 metres and drill hole 614-13-009 which returned 14.7 g/tonne over 4.1 metres.

The 6140 drill station was established earlier this year in closer proximity to the 710 HW region to follow up on drill hole 613-13-039 which returned 22.5 g/tonne over 4.2 metres and 15.7 g/tonne over 4.1 metres (reported April 24, 2013) and drill hole 607-12-048 which returned 15.1 g/tonne over 11.1 metres (reported November 26, 2012). The Company is planning additional drilling this year to follow up on these results.
"The high-grade region identified in the 710 vein hanging wall represents another important zone discovered as a result of ongoing exploration of the Shoreline Basalt Unit at depth. These results have been obtained within 100 metres of existing infrastructure and can be developed rapidly and with minimal capital expenditure," said Ian Berzins, San Gold's President, CEO and Chief Operating Officer.
Highlights of the preliminary drilling from the 6140 drill station are as follows:
Hole Number Zone From
(m)
To
(m)
Core
(m)
Grade(gpt) Depth
(m)
614-13-009 710 HW 72.2 73.6 1.5 9.5 1173
710 HW 98.6 102.7 4.1 14.7 1173
614-13-010 710 HW 19.2 21.3 2.1 12.8 1172
Including 19.5 20.1 0.6 37.0
710 HW 51.1 57.3 6.1 45.3 1172
Including 52.1 53.6 1.5 99.1
Assay values are capped at 102.8 g/tonne (3 oz per ton).
The 710 HW zone is located at the eastern extent of known mineralization at 26 Level of the Rice Lake mine and remains open to the east and northeast. It was identified as part of the Company's ongoing structural analysis to refine the Company's exploration model. This analysis has already yielded numerous new targets within lesser known, near-surface structures (reported September 26, 2013).
Figure 1 provides a graphic illustration showing a plan view of the 710 HW drilling. It can be found here: http://media3.marketwire.com/docs/908847fig1.pdf
Figure 2 provides a graphic illustration showing a section view of the 710 HW drilling. It can be found here: http://media3.marketwire.com/docs/908847fig2.pdf
These figures can also be found on the Company web site (www.sangold.ca) and on SEDAR (www.sedar.com).
This program was carried out by San Gold mine geologists under the supervision of Michael Michaud, P.Geo., the Qualified Person for San Gold under National Instrument 43-101 who has reviewed and approved this news release. Underground drill core samples are assayed on site in the Company's assay lab using the fire assay method with an AA and gravimetric finish. San Gold's quality control and assurance program includes the insertion of standards, the retention of pulps and rejects, and spot checks utilizing independent labs including Accurassay Laboratories of Thunder Bay, ON and Acme Analytical Laboratories Ltd in Winnipeg, MB.
About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Rice Lake Mining Complex near Bissett, Manitoba. The Company employs more than 420 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".
For further information on San Gold, please visit www.sangold.ca.
Cautionary Note
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information


San Gold Corporation
Ian Berzins
President, CEO, and Chief Operating Officer
Toll Free: 1 (855) 585-4653
sgr@sangold.ca

San Gold Corporation
Tim Friesen
Investor Relations
Toll Free: 1 (855) 585-4653
sgr@sangold.ca
www.sangold.ca

Tuesday, August 13, 2013

San Gold Q2 production up 23% and costs reduced by 18% Q2 2013

San Gold Corporation

TSX : SGR
OTCQX : SGRCF



+10Last Hour Close Above 5 Hour Moving Average
+15New 3 Day High on Thursday
+20Last Price Above 20 Day Moving Average
+25New 3 Week High, July 19th
-30New 3 Month Low on December 20
+70Total Score

San Gold Corporation

August 12, 2013 19:00 ET

San Gold Reports 2013 Second Quarter Results



WINNIPEG, MANITOBA--(Marketwired - Aug. 12, 2013) -
(All amounts in Canadian dollars unless otherwise stated)
San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) today reported 2013 second quarter financial and operating results.
During the quarter, the Company produced 22,526 ounces of gold with an average milled grade of 5.05 grams per tonne with cash operating costs of $783 per ounce of gold sold. The Company generated income from operations of $3.4 million, a cash contribution from operations before changes in non-cash working capital of $5.0 million, and recognized a quarterly total and comprehensive loss of $3.6 million.
The Company initiated a number of cost-cutting initiatives during the quarter in response to recent adverse market conditions. Compared with the same quarter last year, the Company reduced its total cash operating costs by $2.7 million, capital expenditures by $3.9 million, and general and administrative expenses by $2.6 million while maintaining production levels.
"I am very pleased with the progress we have made this quarter in improving grade and stabilizing production levels while reducing costs across all aspects of the company. I anticipate continued improvement in the Company's financial performance through the remainder of the year as the full effect of our cost-cutting initiatives takes hold," said Ian Berzins, San Gold's President, CEO and Chief Operating Officer.
Through the first two quarters of the year the Company has completed $10.4 million of flow- through eligible exploration pursuing a number of prospective drilling targets near existing infrastructure. The Company will continue to pursue these targets through the remainder of 2013 with its remaining $6 million in flow-through exploration commitments and anticipates a substantial reduction in surface exploration in 2014 once these commitments are complete.
2013 Second Quarter Highlights:
  • Produced 22,526 ounces of gold, a 23% increase compared to 18,241 ounces in the second quarter of 2012.
  • Achieved average mill throughput of 1,784 tons per day for the quarter, a 39% increase compared to average mill throughput of 1,281 tons per day in the second quarter of 2012.
  • Mined ore at a record quarterly rate of approximately 1,905 tons per day for a total of 173,350 tons, an increase of 11% compared to the rate of 1,709 tons per day in the same period of 2012.
  • Achieved total cash costs of $783 per ounce of gold sold compared to $970 per ounce in the second quarter of 2012 and realized a cash operating margin of $611 per ounce of gold sold with a realized price of $1,394 per ounce through the quarter.
  • Achieved a total cost per ton of ore of $105, a 36% decrease compared to a total cost per ton of ore of $164 in the second quarter of 2012.
  • Generated cash flow from operating activities before changes in non-cash working capital of $5.0 million, compared to $5.7 million in the second quarter of 2012, despite a reduction in the realized price of gold.
  • Generated quarterly operating income from operations of $3.4 million, compared to income from operations of $2.4 million in the second quarter of 2012.
  • Recognized quarterly revenue of $30.4 million on gold sales of 21,796 ounces at a realized price of $1,394 per ounce compared to revenue of $31.6 million in the second quarter of 2012.
  • Recognized quarterly total and comprehensive loss of $3.6 million, compared to total and comprehensive loss of $7.8 million in the second quarter of 2012.
  • Had a cash and short term investments balance of $21.3 million as at June 30, 2013.
  • Accessed the down dip extension of the 007 zone at depth on 26 level and began silling on the structure.
  • Began a program to segregate lower grade ore in a separate surface stockpile to be milled as an incremental feed source at a later date.
  • Completed approximately 74,000 metres of exploration and definition diamond drilling.
  • Purchased mineral claims from Wildcat Exploration Ltd. in the subsequent period.
Review of 2013 Second Quarter Results
The Company produced 22,526 ounces of gold during the quarter compared with 18,241 ounces in the second quarter of 2012. The increase in the number of ounces of gold produced was a result of a 39% increase in tons milled which was offset somewhat by an 11% decrease in grade. The Company milled 162,344 tons in the second quarter of 2013 compared with 116,546 tons milled in the second quarter of 2012. Head grade was 5.05 grams of gold per tonne of ore in the second quarter of 2013, a 22% increase compared with a head grade of 4.15 grams of gold per tonne of ore in the first quarter of this year.
The Company reports quarterly income from operations of $3.4 million and a total and comprehensive loss of $3.6 million, compared to income from operations of $2.4 million and a total and comprehensive loss of $7.8 million in the second quarter of 2012. The increase in income from operations is due to a reduction in total cash operating costs which was partially offset by a reduction in the realized price of gold.
The Company earned quarterly revenue of $30.4 million, a 4% decrease over revenue of $31.6 million in the second quarter of 2012. The decrease in gold sales revenue in the second quarter of 2013 is a result of a 13% decrease in the average realized gold price compared to the second quarter of 2012 which was partially offset by an 11% increase in the number of ounces sold. The Company realized $1,394 per ounce of gold sold in the second quarter of 2013, compared with the $1,607 the Company realized per ounce in the second quarter of 2012 and the Company sold 21,796 ounces of gold in the second quarter of 2013, compared with sales of 19,648 ounces in the second quarter of 2012.
The Company generated $5.0 million of cash flow from operating activities before changes in non-cash working capital in the second quarter of 2013, compared with $5.7 million generated in the second quarter of 2012. After changes in non-cash working capital, operating activities used $5.1 million in the second quarter of 2013, compared to $11.0 million generated in the second quarter of 2012.
Capital spending in the second quarter of 2013 was focused on mine development, increasing mining capability, improving key infrastructure, and sustaining capital. The Company invested $12.9 million in mine development activities and recognized related depletion of $7.8 million compared with an investment of $14.8 million and related depletion of $7.8 million in the second quarter of 2012. The Company also capitalized $4.1 million of property, plant, and equipment and recognized related amortization of $2.1 million during the second quarter of 2013 compared to an investment of $6.1 million and related amortization of $1.7 million in the second quarter of 2012. The Company is continuing its critical review of all subsequent capital development and property, plant and equipment spending for the year and may elect to defer or cancel previously planned projects.
Outlook
The Company continues to carry out a comprehensive review of its operating, capital, corporate overhead, and exploration costs as well as evaluating investments that do not directly contribute to the Company's core operations. The focus continues to be on optimizing margins per ounce and to find the most direct path to achieving free cash flows.
For the balance of 2013, the Company will continue to concentrate mining operations on the 007 complex, with less dependence on Hinge and with a supplemental feed provided by the Rice Lake mine. Mining operations will continue in the Rice Lake mine alongside ongoing capital development projects to provide operational access beneath the current mining areas within the 007 and Hinge mines and extend the 16 and 26 levels in order to accelerate access to the down dip extensions of these deposits. The Company expects the changes to result in improved grade for the balance of the year, a further decrease in capital development spending and property, plant and equipment spending requirements while maintaining production guidance of 75,000 to 90,000 ounces at full year cash costs of between $800 and $900.
Exploration activities for the remainder of the year will continue to focus on definition and extension drilling within the Company's mineral lease for both production planning and exploration purposes at the San Antonio Mining Unit, the Shoreline Basalt Unit, the Normandy Creek Shear Zone, and within the intermediate volcanic rock unit north of the Shoreline Basalt Unit. The objectives of the Company's exploration program is to develop a larger mine complex that can be exploited through existing infrastructure.
Underground drill bays constructed during the first quarter of 2013 continue to provide better access for definition drilling of the 007 structures at depth. The Company has improved confidence about the resource potential at depth as recent drill results below 26 Level confirm continuity of the geological structures hosting the 007 and Hinge deposits.
2013 Q2 Financial Results Conference Call
The Company's senior management plans to host a conference call on August 13, 2013 at 11:00 am Eastern Time to discuss the 2013 second quarter financial results and to provide an update of the Company's operating, exploration, and development activities.
Participants may join the conference call by dialing 1 (866) 225-0198 or 1 (416) 340-8061 for participants outside of Canada and the United States. The conference call will also be available by webcast on the Company's website at www.sangold.ca.
A recorded playback of the conference call can be accessed after the event until August 29, 2013 by dialing 1 (800) 408-3053 or 1 (905) 694-9451 for calls outside Canada and the United States. The pass code for the conference call playback is 8568217. The archived audio webcast will also be available on the Company's website at www.sangold.ca.
About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Rice Lake Mining Complex near Bissett, Manitoba. The Company employs more than 420 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".
This press release should be read in conjunction with the Company's consolidated financial statements for the quarter ended December 31, 2012 and associated Management's Discussion and Analysis ("MD&A"), which are available from the Company's website (www.sangold.ca), in the "News & Reports" section under "Financial Statements", and on SEDAR (www.sedar.com).
For further information on San Gold, please visit www.sangold.ca.
Cautionary Non-IFRS Statements
The Company believes that investors use certain indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with International Financial Reporting Standards ("IFRS"). "Total cash operating costs" as used in this analysis is a non-IFRS term typically used by gold mining companies to assess the level of gross margin available to the Company per ounce of gold by subtracting these costs from the unit price realized during the period. This non-IFRS term is also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of "total cash operating costs" as determined by the Company compared with other mining companies. In this context, "total cash operating costs" reflects the per ounce cash costs allocated from in-process and dore inventory associated with ounces of gold sold in the period and net royalties. "Total cash operating costs" may vary from one period to another due to operating efficiencies, quantity of ore processed, grade of ore processed, and gold recovery rates.
Cautionary Note Regarding Forward-Looking Statements
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics, and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
Cautionary Note to United States and Other Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources:
This press release uses the terms "Measured", "Indicated", and "Inferred" resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.
Table 1: 2013 Second Quarter Income Statement
SAN GOLD CORPORATION
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS AND COMPREHENSIVE LOSS
(Unaudited)
Three month period ended Six month period ended
June 30 June 30 June 30 June 30
2013 2012 2013 2012
REVENUE $ 30,374,431 $ 31,578,850 $ 54,694,459 $ 67,080,710
OPERATIONS
Operations (Note 16) 26,997,444 29,192,070 51,356,518 57,556,960
INCOME FROM OPERATIONS 3,376,987 2,386,780 3,337,941 9,523,750
Exploration 5,708,211 4,245,379 10,360,046 8,846,669
General and administrative (Note 17) 1,479,785 4,113,439 6,914,386 7,938,811
LOSS BEFORE OTHER INCOME AND EXPENSES 3,811,009 5,972,038 13,936,491 7,261,730
OTHER INCOME AND EXPENSES
Finance income - net (Note 18) 42,572 (105,392 ) (364,365 ) 193,321
Finance costs (Note 18) (1,663,203 ) (101,030 ) (2,286,361 ) (215,861 )
Equity loss of associate (Note 8) - (3,130,001 ) - (4,130,001 )
LOSS BEFORE INCOME TAX 5,431,640 9,308,461 16,587,217 11,414,271
Income tax recovery on flow-through shares 1,871,574 1,494,022 3,359,194 2,909,634
NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD $ 3,560,066 $ 7,814,439 $ 13,228,023 $ 8,504,637
LOSS PER COMMON SHARE: (Note 22)
Basic $ (0.01 ) $ (0.02 ) $ (0.04 ) $ (0.03 )
Diluted $ (0.01 ) $ (0.02 ) $ (0.04 ) $ (0.03 )
Table 2: Financial Highlights
Q2 Q2
2013 2012
Total and comprehensive income (loss) (000) $ (3,560 ) $ (7,814 )
Items not affecting cash (000) $ 8,604 $ 13,476
Cash provided (used) by operating activities before changes in non-cash working capital (000) $ 5,044 $ 5,662
Net change in non-cash working capital (000) $ 22 $ 5,382
Cash provided by operating activities (000) $ 5,067 $ 11,044
Earnings (loss) per share
- basic $ (0.01 ) $ (0.02 )
- diluted $ (0.01 ) $ (0.02 )
Weighted average number of common shares outstanding
- basic 335,230,029 324,051,028
- diluted 335,230,029 324,051,028
Table 3: Production Summary and Statistics
Q2 Q2 Change Change
2013 2012 (#) (%)
Ore milled (tons) 162,344 116,546 45,798 39 %
Head grade (g/tonne Au) 5.05 5.70 (0.65 ) -11 %
Contained gold (ounces) 23,964 19,385 4,579 24 %
Ounces of gold produced 22,526 18,241 4,285 23 %
Ore mined (tons) 173,350 155,495 17,855 11.5 %
Ore milled per day (tons) 1,784 1,281 503 39 %
Ore mined per day (tons) 1,905 1,709 196 11 %
Mill recovery (%) 94 % 94 % 0 % 0 %
Table 4: Quarterly Production Summary and Statistics
Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
2013 2013 2012 2012 2012 2012 2011 2011
Ore milled (tons) 162,344 156,013 168,088 191,105 116,546 153,537 141,890 121,844
Head grade (g/tonne Au) 5.05 4.15 4.22 5.21 5.70 5.35 5.36 5.83
Contained gold (ounces) 23,964 18,884 20,539 29,029 19,385 23,995 22,190 20,732
Ounces of gold produced 22,526 17,354 19,019 27,084 18,241 22,162 20,359 19,119
Ore mined (tons) 173,350 143,859 171,351 143,949 155,495 144,549 136,166 124,952
Ore milled per day (tons) 1,784 1,733 1,827 2,077 1,281 1,687 1,542 1,324
Ore mined per day (tons) 1,905 1,598 1,863 1,565 1,709 1,588 1,480 1,358
Mill recovery (%) 94 % 92 % 93 % 93 % 94 % 92 % 92 % 92 %
NOTE: Final refinery settlements, or the effects of rounding, may have resulted in increases or decreases to reported gold production.

Contact Information


San Gold Corporation
Gestur Kristjansson, BA, MBA, CA
Chief Financial Officer
1 (855) 585-4653

San Gold Corporation
Ian Berzins, B.Sc., P.Eng., President,
Chief Executive Officer and Chief Operating Officer
1 (855) 585-4653
sgr@sangold.ca
www.sangold.ca