ENP Newswire -
Release date- 15082014 -
The Company is also announcing that it has reported its financial results for the three and six-month periods ended
'As a result of the recently completed equity financing, we have the funds necessary to complete the PFS for our
Kalana Main PFS commenced and is scheduled for completion near the end of 2014
The PFS will build on the strong technical and economic results from the PEA
Snowden, a leading international integrated mining engineering firms, appointed to manage the completion of the PFS
The Company is sufficiently funded to complete the Kalana PFS
Kalana Main Preliminary Feasibility Study
Following the completion of the PEA, Snowden was appointed to lead the Kalana Main PFS. Snowden will provide mine engineering design services and be supported by several leading consulting firms, all of whom have extensive experience in
DRA Global has been retained to manage a recently commenced metallurgical test program and to design a new gold plant. DRA Global has also been retained to design new surface infrastructure. The potential locations of surface infrastructure to support a new open-pit mining operation have been identified. A 4,500-metre ('m') air core sterilization drill program was completed in
Epoch Resources has been appointed to complete an Environmental and Social Impact Assessment ('ESIA') and design tailings and waste rock impoundment facilities. As part of the ESIA, Epoch Resources will also complete a Resettlement Action Plan for a portion of a community near the
Looking at its development plans beyond 2014, the Company intends to commence a 14,000m reverse-circulation and diamond drilling program in the first quarter of 2015. This program is intended to upgrade existing inferred resources to the measured and indicated categories and to test for extensions to areas of known mineralization at the
Second Quarter 2014 Financial Results and Outlook
Gold production during the second quarter of 2014 was 2,048 ounces, 32% lower than the 2,992 ounces produced in the comparative period of 2013. Lower gold production is primarily a result of a 27% decrease in the grade of ore mined and processed. A 5% decline in the tonnes of ore processed and a slight decrease in metallurgical recovery also contributed to lower gold production.
Metal revenues were
Cash operating costs per ounce sold increased to
The Kalana underground mine is not profitable and continues to be operated principally for exploration purposes and maintain socioeconomic stability in the local community. The Company intends to continue underground mining through the completion the feasibility studies for on the
Avnel recorded a net loss of
For the remainder of 2014, Avnel is forecasting gold production of 4,700 ounces from 30,000 tonnes of ore at an average grade of 6.1 grams of gold per tonne of material ('g/t Au') for total gold production of 8,883 ounces in 2014. The ore scheduled to be processed consists of 23,000 tonnes of underground ore and 7,000 tonnes of ore from surface stockpiles.
This press release should be read in conjunction with the Company's interim consolidated financial statements for the three- and six-month periods ended
Avnel is a TSX-listed gold mining, exploration and development company with operations in southwestern
Tel: +44 207 589 9082
Tel: +1 (647) 692-5460
Preliminary Economic Assessment
The Kalana Main Preliminary Economic Assessment ('PEA') is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves; thus, there is no certainty that the economic benefits indicated in the PEA will be realized.
The PEA is subject to a number of assumptions, including, among others that an Environmental and Social Impact Assessment ('ESIA') will be completed within the required timeline, all required permits will be obtained in a timely manner, the company will continue to have the support of local community, a constant regulatory environment and no material increase occurs to the estimated costs.
The Kalana Main PEA is based upon an 8.54 million tonne Indicated Mineral Resource grading 4.53 g/t Au containing 1.25 million ounces and a 2.09 million tonne Inferred Mineral Resource grading 3.76 g/t Au containing 0.25 million ounces utilizing a cut-off grade of 0.9 g/t Au. The PEA also includes 0.66 million tonnes of tailings grading 1.80 g/t Au that are classified as an Indicated Mineral Resource. Investors are cautioned not to assume that all or any portion of these mineral resources will ever be converted into proven and probable reserves.
This news release includes certain 'forward-looking statements'. All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel, are forward-looking statements that involve various risks and uncertainties. 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 Avnel's expectations include, among others, risks related to international operations, 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 gold and silver, as well as those factors discussed in the section entitled 'Risk Factors' in Avnel's Annual Information Form, which is available on SEDAR (www.sedar.com).
Although Avnel 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.
'Cash Operating Costs' is a non-GAAP and non-IFRS measure that does not have a standardized meaning prescribed by GAAP or IFRS and there may be some variation in the method of computation to other similarly titled measures of other gold mining companies. 'Cash Operating Costs' is calculated as reported Production Costs, which includes costs such as mining, processing, administration, non-site costs (transport and refining of metals, and community and environmental), less royalties paid. These costs are then divided by the number of ounces sold to arrive at 'Operating Cash Costs Per Ounce Sold'.
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