Vancouver, British Columbia (FSCwire) - FIORE GOLD LTD. (TSXV: F) (OTCQB: FIOGF) (“Fiore” or the “Company”) is pleased to provide an operational update on its Pan Mine in White Pine County, Nevada. Mine production in October totaled 425,634 tons of ore and 473,803 tons of waste, with the mine now maintaining a consistent mining rate of 14,000 tons per day (tpd) of ore. Gold production for October was 1,809 ounces, a significant increase over the 1,602 ounces produced in September.
As in any heap leach operation, increases in gold production will lag behind ore production, so we expect to see further increases in gold production going forward as leaching moves towards steady state, and as ore stacking begins on the new Phase IIA leach pad expansion. Fiore is projecting gold production of 35-40,000 ounces in fiscal 2018 (October 2017 through September 2018), with gold production weighted towards the second half of FY2018 as higher-grade ore is mined.
Work on the Phase II Leach Pad expansion is nearing completion, with the HDPE liner completely tied in four days ahead of schedule, and placement of crushed overliner material and solution piping advancing well. Photos of the construction progress can be viewed here [Image 1, Image 2, Image 3, Image 4 ].
Tim Warman, Chief Executive Officer of Fiore, commented: “October was another strong month for the Pan Mine, as our team transitioned from the restart and ramp-up phase to steady-state mining. Monthly gold production continues to climb, costs are in line with budget, and the mine is now generating operating cash flow. We are especially pleased with the progress on the new leach pad expansion, which will double our leach pad capacity and should improve overall leach performance.”
Early in 2018, Fiore will use a portion of the new leach pad to construct two test cells of approximately 10,000 tons each in order to compare the leaching characteristics of crushed vs. run of mine (ROM) ore. The testing will utilize the crusher currently on site to produce overliner material. Previous laboratory-scale tests have suggested that the addition of a crusher circuit would increase gold recoveries at Pan, particularly from the harder, more silicified North Pit ore. Results from this field test should be ready by mid-2018, and will help determine if the addition of a crushing circuit is warranted.
Exploration work aimed at increasing the resource and reserve base at Pan is also ongoing, with a number of drill targets identified proximal to both the North and South Pits. Drilling is expected to commence in early 2018.
Corporate Strategy
Fiore’s goal is to build on the existing operations at our Pan Mine in Nevada to become a 150,000 ounce/year gold producer. To achieve this, we intend to:
- grow gold production at the Pan Mine from a planned 35-40,000 ounces in fiscal 2018 to between 40-50,000 ounces per year by fiscal 2019
- advance exploration and development of the nearby Gold Rock project, with a resource update planned for late 2018
- acquire additional production or near-production assets in Nevada and surrounding states
Qualified Person
The scientific and technical information relating to Fiore Gold’s properties contained in this press release was approved by Ken Brunk (MMSA) Fiore Gold’s Chief Operating Officer and a "Qualified Person" under National Instrument 43-101.
