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Devon Gold Mine
Standby Funding Facility Repaid Mining Update
GME Resources Limited ("GME" or "the Company") is pleased to advise that the Company has now repaid the $1.5 million Standby Funding Facility provided by Zeta Resources Ltd (Refer ASX announcement 17 March 2016) for the development of the Devon Gold Mine.
The Company is now debt free and has sufficient working capital to fund the project through to completion.
Mining through June has focused on removal of a large section of waste material from the western wall of the pit. This is now complete and the final pit shell has emerged as shown in the following photo.
Approximately 70,000 BCM's remain to be mined from the pit. The mining schedule has forecast 34,500 wet tonnes of high grade ore averaging 6.3 g/t will be generated in the final month of mining.
To date four ore batches have been processed at Sarcen's Carosue Dam processing plant for a total of 26,300 dry tonnes. Tonnes and grade of the individual batches are listed below.
Batch 1 - 5,832 dry tonnes averaging 4.14 g/t April - Gold Sale Price $1621.46 Batch 2 - 9,633 dry tonnes averaging 3.61 g/t April - Gold Sale Price $1621.46 Batch 3 - 6,244 dry tonnes averaging 6.26 g/t May-- Gold Sale Price $1721.36 Batch 4 - 4,591 dry tonnes averaging 6.43 g/t May - Gold Sale Price $1721.36
The Company looks forward to providing further information at the completion of mining and processing.
JAMIE SULLIVAN MANAGING DIRECTOR
28 June 2016
Devon Gold Mine - Final Pit Shell (south facing)
Competent Person Statement The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Mark Gunther who is a member of The Australasian Institute of Geoscientists. Mr Gunther is a Principal Consultant with Eureka Geological Services. Mr Gunther has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Gunther consents to the inclusion in the report of the matters based on information provided in the form and context in which it appears.
Forward Looking Statement This announcement contains statements related to our future business and financial performance and future events or developments involving GME Resources (GME) that may constitute forward-looking statements. These statements may be identified by words such as "potential", "exploitable", "proposed open pit", "evaluation", "expect," "future," "further," "operation, "development, "plan," "permitting", "approvals", "processing agreement" or words of similar meaning. Such statements are based on the current expectations and certain assumptions of GME management & consultants, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond GME's control, affect our operations, performance, business strategy and results and could cause the actual results, performance or achievements of GME to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. GME has concluded that it has a reasonable basis for providing the forward looking statements included in this announcement.
Figure 1 Devon Gold Project Location Plan
Figure 1