VANCOUVER, Jan. 19, 2018 /CNW/ - Atlantic Gold Corporation (TSX-V: AGB) ("Atlantic" or the "Company") is pleased to announce 2018 production guidance for the Moose River Consolidated (MRC) gold mine, Nova Scotia, Canada. Following the successful ramp up for the company's initial Phase 1 of operations, Atlantic Gold's outlook for 2018 includes:
- Production between 82,000-90,000 ounces of gold.
- Cash Costs between CAD$500-$560/oz. (US$400-448/oz.*)
- All-In-Sustaining-Costs (AISC) between $CAD675/oz. - $735/oz. (US$540-588/oz.*)
The Company is guiding towards CAD$5-6 million in growth capital expenditures in 2018.
The month of December 2017 was the first month of continuous reserve grade mill feed after processing low to medium grade material in October and November during plant ramp-up. Despite power outages over the Holiday period due to winter storms production was 7,021 ounces of gold for the month of December.
Further updates will be provided in due course.
*assumes an exchange rate of CAD$0.80
Non-IFRS performance measures
This news release refers to total cash costs and AISC, which are non-IFRS performance measures. The company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable with other issuers.
Reconciliation of these figures will be included in the Company's 2018 financial statements and management discussion and analysis.
Total cash costs
Atlantic will report total cash costs on a sales basis. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, such as sales, certain investors use this information to evaluate the Company's performance and ability to generate operating earnings and cash flow from its mining operations. Management also uses this metric as an important tool to monitor operating cost performance.
Cash costs include production costs such as mining, processing, refining and site administration divided by gold ounces sold to arrive at total cash costs per gold ounce sold. Costs are exclusive of depreciation. Costs include royalty payments and production taxes, community and permitting costs. Other companies may calculate this measure differently.
All-in sustaining costs
The company calculates all-in sustaining costs as the sum of total cash costs (as described above), corporate general and administrative expense (net of stock-based compensation), reclamation cost accretion and amortization and sustaining capital, all divided by the gold ounces sold to arrive at a per ounce figure.
Other companies may calculate this measure differently as a result of differences in underlying principles and policies applied. Differences may also arise due to a different definition of sustaining versus growth capital.
On behalf of the Board of Directors,
Steven Dean
Chairman and Chief Executive Officer
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 release.
About Atlantic:
Atlantic is a well-financed, growth-oriented gold development group with a long term strategy to build a mid-tier gold production company focused on manageable, executable projects in mining-friendly jurisdictions. Atlantic owns Canada's newest open pit gold mine Moose River Consolidated in Nova Scotia with first gold pour and initial production announced October 2017. Phase 1 Life of Mine production guidance for 2018 is between 82,000-90,000 oz. gold at All-In-Sustaining-Costs (AISC) between $CAD675/oz.-$735/oz. (US$540-588/oz.*) as stated in the Company's news release (January 19, 2018). Additional satellite deposits containing 850,000 oz's measured & indicated within pit shells and 309,000 oz's inferred as referenced in a NI 43-101 Technical Report with an effective date of July 20, 2017, form the basis of a Phase 2 expansion currently under study and has potential to add significantly to Life of Mine production. Atlantic is committed to the highest standards of environmental and social responsibility and continually invests in people and technology to manage risks, maximize outcomes and returns to all stakeholders.
