ENP Newswire -
Release date- 15082014 -
All dollar amounts are expressed in
SECOND QUARTER 2014 FINANCIAL HIGHLIGHTS:
Gold equivalent ounces loaded to the pads increased by 29% quarter over quarter.
Cash cost per gold ounce sold of
SECOND QUARTER 2014 COMPANY HIGHLIGHTS:
GEO production of 21,359 ounces consisting of 21,041 gold ounces and 17,474 silver ounces (GEOs at 55:1 conversion rate).
37,352 gold ounces loaded on the leach pads equating to 21,424 projected recoverable gold ounces.
The daily mining rate for the quarter increased from 87 thousand tonnes per day ('ktpd') in the first quarter to 91 ktpd in the second quarter, an increase of 5% quarter over quarter (23% year over year). The mine plan incorporated mostly oxidized ore, increasing from 75% to 87% of total ore placed on the pads for the second quarter over the first quarter. This is expected to result in improved recoveries in the coming quarter.
Strip ratio increased slightly in the quarter to 1.2:1 which is consistent with mine plan expectations.
Crushing and conveying:
West crusher conveyor moved a record 1,468,000 tonnes to the pads.
East crusher conveyor moved a record 1,616,000 tonnes to the pads.
Construction of Cell 2a was completed in May and over liner placement is nearly complete, well ahead of schedule.
Cell 3b the rock fill was completed in June and the cell construction is expected to be finalized in the third quarter, which is also ahead of schedule.
GEO production of 8,951 ounces, consisting of 8,420 gold ounces and 29,224 silver ounces (GEOs at 55:1 conversion rate).
15,651 gold ounces and 189,621 silver ounces loaded on the pad; equating to 10,425 projected recoverable GEOs to leach pad.
The Company is ahead on stripping for the year. The strip ratio of 4.49:1 fell in comparison to the 7.22:1 strip ratio realized during the first quarter, as ore shipments to the crusher increased.
Record 880,000 tonnes of crushed ore was loaded to the leach pad which is an increase of 182% year over year. A new rate of 10 ktpd of crushed ore to the pads has now been established. Since first quarter of this year we have achieved nearly a 40% improvement in crushing.
An additional tertiary crusher was added to the crushing circuit and commissioned at the beginning of July in an effort to further increase crushing capacity.
The purchase agreement with
The Company is developing a budget and detailed exploration plan for these additional lands.
Argonaut has identified additional material for further heap leach column test work to be performed, and expects to begin this metallurgical test work in the third quarter.
The Company continues to advance the permitting studies on the project.
The Company continues to work on advancing the permitting process. The activities are focused on creating a mutually beneficial project for all stakeholders by working with local and federal agencies and officials, local communities and also pursuing legal alternatives which are available to the Company.
The Phase I drill program of 22,114 metres has been completed as of
Initiated Phase II drill program, to date 3,050 metres of the 16,000 metres planned have been completed.
Metallurgical test work continues with column tests being run by independent laboratory
These concessions total 489 hectares immediately to the west and east of the current drill program for the Company.
A cash payment of
On the exploration front, we are very pleased with the drilling done as well as the project development work at the newly acquired
The team is focused on delivering on the 2014 goals. In terms of our three development projects, we are advancing these projects towards permitting and construction decisions.'
Financial Results - Second Quarter 2014
During the second quarter of 2014, revenue was
During the second quarter of 2014, gross profit was
Cash and cash equivalents was
Summary of Production Results at
Total tonnes mined increased by 24% for the second quarter 2014 over second quarter 2013. The gold ounces loaded to the pads in the second quarter 2014 decreased by 7% over second quarter 2013 due to lower mined grades.
Gold production of 21,041 ounces in the second quarter of 2014 was 25% lower compared to the second quarter of 2013 due to lower ore grades; production rates are improving and expected to increase in the second half of the year. 2014 production guidance at
The strip ratio of waste to ore increased in the second quarter of 2014 to 1.20 compared to 1.04 in the second quarter of 2013, reflecting the push back on the north side of the pit and in line with expectations for the mine plan this year.
Summary of Production Results at
Total tonnes mined decreased by 7% for the second quarter 2014 over second quarter 2013 as we began stripping of antenna hill area. There were 15,651 gold ounces placed on the pad in the second quarter of 2014, compared to 2,796 ounces placed on the pad in the second quarter of 2013 (an increase of 460%).
Second quarter production in 2014 of 8,951 GEOs was an increase of 41% over second quarter 2013 production of 6,335 GEOs. We anticipate gold equivalent ounce production for the full year guidance to be 40,000 to 45,000 ounces for 2014, as we continue to ramp up crushing capacity and mine higher grade ore.
Capital Expenditures for 2014
The Company plans on investing a total of between
The Company has included a non-IFRS measure for 'Cash cost per gold ounce sold' in this press release to supplement its financial statements which are presented in accordance with International Financial Reporting Standards ('IFRS'). Cash cost per gold ounce sold is equal to production costs less silver sales divided by gold ounces sold. The Company believes that this measure provides investors with an improved ability to evaluate the performance of the Company.
Non-IFRS measures do not have any standardized meaning prescribed under IFRS. Therefore they may not be comparable to similar measures employed by other companies. The data is 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.
This press release should be read in conjunction with the Company's unaudited consolidated financial statements for the quarter ended
Cautionary Note Regarding Forward-looking Statements
This press release contains certain 'forward-looking statements' and 'forward-looking information' under applicable Canadian securities laws concerning the proposed transaction and the business, operations and financial performance and condition of
Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and mine life of the various mineral projects of Argonaut; synergies and financial impact of completed acquisitions; the benefits of the development potential of the properties of Argonaut; the future price of gold, copper, and silver; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities and currency exchange rate fluctuations.
Except for statements of historical fact relating to Argonaut, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as 'plan,' 'expect,' 'project,' 'intend,' 'believe,' 'anticipate', 'estimate' and other similar words, or statements that certain events or conditions 'may' or 'will' occur.
Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Argonaut and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, variations in ore grade or recovery rates, risks relating to international operations, fluctuating metal prices and currency exchange rates, changes in project parametres, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.
These factors are discussed in greater detail in Argonaut's most recent Annual Information Form and in the most recent Management Discussion and Analysis filed on SEDAR, which also provide additional general assumptions in connection with these statements. Argonaut cautions that the foregoing list of important factors is not exhaustive.
Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Argonaut believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.
Although Argonaut has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Argonaut undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed. Comparative market information is as of a date prior to the date of this document.
Tel: (775) 284-4422
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