Toronto, Ontario
-- September 12, 2016 - Roxgold Inc. ('Roxgold' or the 'Company') (TSX.V: ROG) is pleased to report an update on operations and gold production from the Yaramoko Gold Mine located in Burkina Faso.
'We are very pleased by the excellent performance of the processing facility as well as the continued ramp up of the underground operations. Since pouring first gold on the 16th of May 2016, the project has steadily moved through various performance milestones,' commented John Dorward, Roxgold's President and CEO. 'Gold production at Yaramoko reached 35,753 ounces at a mill feed grade of 15.44 grams per tonne as of August 31, 2016 and the Company is still on track to reach commercial production in the third quarter.'
Key Production Metrics As Of August 31, 2016
|
May
|
June
|
July
|
August
|
YTD Total
|
|
Total Development
|
(metres)
|
545
|
589
|
562
|
664
|
4,411
|
|
Ore Mined
|
(tonnes)
|
10, 500
|
11,767
|
13,371
|
16,459
|
84,576
|
|
Milled
|
(tonnes)
|
18,631
|
21,708
|
20,760
|
19,845
|
80,944
|
|
Head Grade
|
(g/t Au)
|
11.57
|
14.92
|
15.73
|
19.35
|
15.44
|
|
Gold Recovery
|
(%)
|
97.16
|
97.65
|
98.65
|
99.10
|
98.27
|
|
Mill Operating Time
|
(%)
|
74.9
|
98.6
|
98.0
|
96.7
|
96.6
|
|
Gold Poured
|
(ounces)
|
2,082
|
12,400
|
10,538
|
10,733
|
35,753
|
Operations Update
In August, stoping operations were established with the successful mining and extraction of the first stope. Due to the good rock conditions encountered, this stope located on the 5219RL, was increased in size from 25 metres to 40 metres in length, and delivered 4,321 tonnes of ore at 28.49 grams per tonne ('gpt'). Clean hanging wall contacts were observed and the overall dilution for the stope was 10.7%, which compares favourably to the Feasibility Study assumption of 20.5%. In September, further openings will be mined with a second stope currently being accessed on the 5219RL.
The processing plant continues to operate very well with high availabilities. Gold recoveries have been above the Feasibility Study assumption of 96.9% in all months with over 99% recovery experienced in August. In addition, the plant team continue to observe improved operating performance in the gravity circuit.
In the coming months the focus of the team at site is to continue to ramp up mine productivity to support mill throughput.
HV Power Grid Update
Work continues to progress on the connection to the high voltage national electricity grid in Burkina Faso. The transmission line construction is complete and Eiffage, the substation contractor, has established civil works for the substation.
The substation transformer is scheduled to arrive at the Abidjan, Ivory Coast port in mid-September 2016 and is expected on site by mid-October 2016. Progress is positive and the Company anticipates drawing on the power supply in Q1 2017.
Financial Position and Corporate Communications Activities
As at August 31, 2016, Roxgold's cash and gold position was approximately US$63.5 million. This figure includes a cash balance of approximately US$49.4 million, receivables from gold sales of approximately US$7.7 million and gold bullion inventory at a market value of approximately US$6.4 million.
The Company will be attending the Precious Metals Summit and Denver Gold Forum investment conferences in Colorado this month.
John Dorward will be providing an update on the Company's activities at the Precious Metals Summit on September 15, 2016 at 11:00AM MDT, which can be viewed via live webcast here: http://www.gowebcasting.com/conferences/2016/09/14/precious-metals-summit/day/2
Mr. Dorward will also be presenting at the Denver Gold Forum on September 20th, 2016 at 4:40PM MDT, which will be available via webcast on September 23, 2016 by clicking here: http://www.denvergoldforum.org/dgf16/company-webcast/ROG:CN/.
Upcoming Catalysts
At the 55 Zone, a drilling program commenced last week with the intention to test the extension of the high grade zone at depth with approximately 15,000 meters of drilling planned.
A second drilling program, commencing next month, will also be undertaken at Bagassi South to expand on the resource at the QV' target with approximately 4,000 metres of drilling planned.
In addition to the near-mine drilling program, regional exploration at Yaramoko will also re-commence this month. A soil geochemistry program has been planned in the southern portion of the concession over a prospective granitic intrusion along the Yaramoko shear. The targeted area is approximately 6 square kilometres and the sampling will be conducted along 100 metre spaced lines.
USD$2.5 million has been budgeted for the remainder of the 2016 exploration program.
Roxgold is currently working on an updated Life of Mine ('LOM') Plan, the results of which are scheduled to be released in Q1 2017. As part of this update, Roxgold intends to include the results of an initial assessment on the potential for an underground operation at Bagassi South.
Bagassi South has an inferred resource estimate of 563,000 tonnes at 12.14 gpt containing 220,000 ounces of gold (see press release dated April 27, 2016) and is located approximately 1.8 kilometres from the Yaramoko processing facility.
Qualified Persons
Paul Criddle, FAUSIMM, Chief Operating Officer for Roxgold Inc., and Craig Richards P. Eng, Principal Mining Engineer for Roxgold Inc., are Qualified Persons within the meaning of National Instrument 43-101, and have verified and approved the technical data disclosed in this press release.
About Roxgold
Roxgold is a gold mining company with its key asset, the high grade Yaramoko Gold Mine, located in the Houndé greenstone region of Burkina Faso, West Africa. The Company expects to reach commercial production in Q3 2016. Roxgold trades on the TSX Venture Exchange under the symbol ROG and as part of the Nasdaq International Designation program with the symbol OTC: ROGFF.
FOR MORE INFORMATION:
Tania Shaw
Director, Investor Relations & Communications
416-203-6401
[email protected]
'Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.'
These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as 'anticipates', 'believes', 'could', 'estimates', 'expects', 'may', 'shall', 'will', or 'would'. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves, the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Yaramoko Gold Project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, including the approval of the TSX Venture Exchange for the balance of the AUMS Mining Contract Option, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: changes in market conditions, unsuccessful exploration results, changes in the price of gold, unanticipated changes in key management personnel and general economic conditions. Mining exploration and development is an inherently risky business. Accordingly, actual events may differ materially from those projected in the forward-looking statements. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.