GoGold Produced 408,024 Silver Eq Ounces, an increase of 29% With Cash Costs of $5.54 per Silver Eq Ounce
HALIFAX, July 13, 2015 /CNW/ -GoGold Resources Inc. (TSX: GGD) ("GoGold") is pleased to announce its first full quarter of commercial production at the Parral heap leach facility in Chihuahua, Mexico. The key performance indicators at the mine have consistently improved during the commissioning process.
Production for the quarter was 408,024 silver equivalent ounces which represents a 29% increase over the previous quarter. Tonnes stacked on the heap leach pad and Merrill Crowe throughput were both consistently at design levels throughout the quarter. Quarterly production has improved each quarter since commissioning began and this is expected to continue until the heap leach pad reaches equilibrium.
Cash cost per ounce of silver averaged $4.29 (net of gold credits) and $5.54 per silver equivalent ounce during the quarter. The company expects that Parral will continue to be one of the lowest cost silver producers in Mexico.
The recovery rates on the heap leach pad are on track to achieve those set out in the prefeasibility study. The first cell on the pad has now recovered over 100% of the expected metal and continues to deliver ounces every day. The recovery rates for all other cells are similar to what has been experienced on the first cell. The recovery curve is taking longer than originally predicted in the pre-feasibility study but the actual recovery rates are expected to meet or exceed those in the study.
The following table outlines the key performance indicators during the last quarter.
Table 1. Key Performance Indicators
|Key performance indicator*:||Quarter ended Sept 30, 2014||Quarter ended Dec 31, 2014||Quarter ended Mar 31, 2015||Quarter ended June 30, 2015|
|Total tonnes stacked||230,137||335,181||405,596||468,287|
|Gold production (oz)||167||237||318||687|
|Silver production (oz)||104,444||212,342||292,267||356,617|
|Silver equivalent production (oz)***||115,667||230,240||315,804||408,024|
|Cash costs per Silver ounce**||$ 5.17||$ 5.79||$ 5.01||$ 4.29|
|Cash costs per Silver equivalent ounce***||$ 6.46||$ 6.62||$ 5.64||$ 5.54|
|Operating costs per tonne stacked||$ 7.16||$ 9.49||$ 8.33||$ 8.91|
|Realized silver price||$ 18.46||$ 15.38||$ 16.03||$ 15.67|
|Mine Site EBITDA||$ 1,324,124||$ 1,326,758||$ 2,855,272||$ 4,810,412|
*Internal unaudited estimate **Using Gold as a by-product credit ***Gold is converted using actual realized prices
Mr. Robert Harris P.Eng. is the qualified person as defined by National Instrument 43-101 and is responsible for the technical information of this release. All dollar figures have been expressed in USD.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom. This release does not constitute an offer to sell or a solicitation of an offer to buy of any of GoGold's securities in the United States.
This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the impact of the private placement and debt financing on GoGold and the Parral tailings project, and future plans and objectives of GoGold, constitute forward-looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of GoGold and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of mineral resource estimates, and the ability to satisfy all conditions to funding of the second tranche under the credit agreement. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.
Important factors that could cause actual results to differ materially from GoGold's expectations include exploration and development risks associated with the GoGold's projects, the failure to establish estimated mineral resources or mineral reserves, volatility of commodity prices, variations of recovery rates and global economic conditions. For additional information with respect to risk factors applicable to GoGold, reference should be made to GoGold's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, GoGold's Annual Information Form. The forward-looking information contained in this release is made as of the date of this release.
SOURCE GoGold Resources Inc.