| | Published : November 28th, 2007 | Reports Third Quarter Results for 2007 |
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Peak
Gold Reports Third Quarter Results for 2007
November 28, 2007
(All figures are in US dollars unless stated otherwise)
Vancouver, British Columbia, November 28, 2007 � Peak Gold Ltd.
(PIK:TSX-V) (�Peak Gold�) today reported net earnings of $1.2 million,
after recording $1.0 million stock-based compensation charges, for the
quarter ended September 30, 2007.
Third Quarter Highlights
- Gold production of 53,900 ounces
- Gold sales of 55,000 ounces
- Total cash costs of $303 per ounce (net of by-product sales) (1)
- Earnings from operations for the Peak Mines were $6.5 million. Loss
from operations for the Amapari Mine were $1.6 million
- Consolidated operating cash flows of $7.8 million
- On November 15, 2007, the Company filed an independent technical
report for the Amapari Mine. The Proven and Probable Mineral Reserve as
of
September 30, 2007 is 302,100 contained ounces of gold. The Measured and
Indicated Mineral Resource(2) is 1.047 million contained ounces of gold.
The Inferred Mineral Resource is 1.351 million contained ounces of gold.
- Private placement of special warrants to raise gross proceeds of
approximately $110 million is expected to close on November 28, 2007
For the period January 1, 2007 to September 30, 2007, gold and copper
production and sales for the Amapari Mine and the Peak Mines are
presented
below.
Note: This table includes results for the period prior to the acquisition
of the Amapari Mine and the Peak Mines on April 3rd and April 27th,
respectively.
Peak Mines
Production for this quarter at the Peak Mines in Australia was 31,703
ounces of gold and 1,932,000 pounds of copper. Mill throughput was an
operational record this quarter at 182,835 tonnes and reflects improved
underground production and increased milling capacity. Total cash costs
for the quarter were $176 per ounce which reflects consistent copper
concentrate sales and continued cost containment despite a strengthening
Australian dollar.
The development of the surface decline connection to the underground
workings at the Peak Mines is on schedule and expected to be completed in
December 2007. This decline is expected to provide increased reliability
of production, enable cost savings and improve access to additional ore
reserves.
Amapari Mine
Gold production for this quarter at the Amapari Mine in Brazil has
increased to 22,200 ounces from 17,300 over the same period in the prior
year. The higher gold production is a result of higher gold grades
combined with improved grade control. This quarter was a record for ore
processed with 519,400 tonnes. Gold recovery was adversely affected by
increased saprolite content on the heaps and heavy rain occurrences
during
heap formation. Total cash costs for the quarter decreased to $491 per
ounce from $539 per ounce over the same period in the prior year due
mainly to higher production, cost savings during the quarter, and the
inclusion in inventory of gold in solution. However, the cost savings
achieved during the quarter were partially offset by the strengthening of
the Brazilian currency (real).
�Peak Gold is continuing to work on improving recoveries of the oxides
and
efficiency of its mining operations at Amapari,� said President and Chief
Executive Officer, Julio Carvalho.
Peak Gold filed an independent technical report on November 15, 2007 for
its Amapari Mine in Brazil. The Proven and Probable Mineral Reserve
Estimate as of September 30, 2007 is 3.806 million tonnes at 2.47 grams
of
gold per tonne or 302,100 contained ounces of gold. The Measured and
Indicated Mineral Resource Estimate (inclusive of reserves) as of
September 30, 2007 is 14.237 million tonnes at 2.29 grams of gold per
tonne or 1.047 million contained ounces of gold. The Inferred Mineral
Resource Estimate as of September 30, 2007 increased to 13.039 million
tonnes at 3.22 grams of gold per tonne or 1.351 million contained ounces
of gold compared to 1.92 million tonnes at 2.47 grams of gold per tonne
or
152,000 contained ounces of gold estimated as of December 31, 2006.
�During this quarter we continued to evaluate mining assets for potential
acquisitions. We remain confident that we will deliver on our growth
strategy and increase production via acquisitions,� said President and
Chief Executive Officer Julio Carvalho.
Peak Gold will hold a conference call on Wednesday, November 28, 2007 at
10:00 a.m. (PT) to discuss these results. You may join the call by
dialing
toll free 1-888-789-9572 or 1-416-695-7806 for calls from outside Canada
and the U.S. You can listen to a recorded playback of the call after the
event until Wednesday, December 26, 2007 by dialing 1-800-408-3053 or
1-416-695-5800 for calls outside Canada and the U.S. Passcode: 3240618#.
Peak Gold is a new intermediate gold producer with a strong foundation
for
growth. To learn more about us, please visit our website at www.peakgold.com.
Please click here to download the full third quarter report.
(1) Peak Gold has included a non-GAAP performance measure, total cash
cost
per gold ounce, throughout this news release. The Company reports total
cash costs on a sales basis. In the gold mining industry, this is a
common
performance measure but does not have any standardized meaning, and is a
non-GAAP measure. The Company follows the recommendations of the Gold
Institute standard. The Company believes that, in addition to
conventional
measures, prepared in accordance with GAAP, certain investors use this
information to evaluate the Company�s performance and ability to generate
cash flow. Accordingly, it 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 GAAP.
(2) Measured and Indicated Mineral Resources are inclusive of Mineral
Reserves
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING
STATEMENTS
This News Release contains �forward looking statements�, within the
meaning of applicable Canadian Securities legislation. Forward-looking
statements include, but are not limited to, statements with respect to
the
future price of gold and copper, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and
amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of new deposits,
success
of exploration activities, permitting time lines, currency exchange rate
fluctuations, requirements for additional capital, government regulation
of mining operations, environmental risks, unanticipated reclamation
expenses, title disputes or claims and limitations on insurance coverage.
Generally, these forward looking statements can be identified by the use
of forward-looking terminology such as �plans�, �expects�, or �does not
expect�, �is expected�, �budget�, �scheduled�, �estimates�, �forecasts�
,�intends� ,� anticipates�, or �does not anticipate�, or �believes�, or
variations of such words and phrases or state that certain actions,
events
or results �may�, �could�, �would�, �might� or �will� or �will be taken�,
�occur� or �be achieved�. Forward-looking statements are subject to known
and unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of Peak
Gold to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks related
to
the integration of acquisitions; risks related to international
operations;
actual results of current exploration activities; actual results of
current
reclamation activities; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; future prices of gold
and copper; possible variations in ore reserves, grade or recovery rates;
failure of plant; equipment or processes to operate as anticipated;
accidents; labor disputes and other risks of the mining industry; delays
in obtaining governmental approvals or financing or in the completion of
development or construction activities, as well as those factors
discussed
in the section entitled �Risk Factors� in Peak Gold�s Filing Statement
dated April 2, 2007, available at www.sedar.com. Although Peak Gold has
attempted to identify important factors that would cause actual results
to
differ materially from those contained in forward-looking statements,
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
that
are incorporated by reference herein, except in accordance with
applicable
securities laws.
CAUTIONARY NOTE REGARDING RESERVES AND RESOURCES
Readers should refer to continuous disclosure documents filed by Peak
Gold
since April 3, 2007 available at www.sedar.com, for further information
on
mineral reserves and resources, which is subject to the qualifications
and
notes set forth therein.
For additional information please contact:
Investor Relations, Vanguard Shareholder Solutions
Tel: 1.866.398.1088 or 604.608.0824
Email: ir@vanguardsolutions.ca
Peak Gold
Vanguard Shareholder
Solutions
Vanguard Shareholder Solutions (Vanguard)
provides, for remuneration,
corporate communications and investor relations services to the above
mentioned client(s).
The information contained in this email is based on existing disclosure
documents or other
publicly available information. You are encouraged to seek independent
verification of any information that is important to your decisions.
By responding to your inquiry neither Vanguard nor the above mentioned
client(s) is offering
securities or advising or soliciting the purchase or sale of
securities.
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Peak Gold Ltd
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CODE : PIK.V |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Peak Gold is a gold producing company based in Canada. Peak Gold is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 587.9 millions as of today (US$ 577.1 millions, € 367.4 millions). Its stock quote reached its highest recent level on December 31, 2007 at CA$ 1.10, and its lowest recent point on December 31, 2007 at CA$ 0.43. Peak Gold has 725 791 396 shares outstanding. |
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