FIORE GOLD’S PAN MINE PRODUCES 2,760 OUNCES OF GOLD IN NOVEMBER, PHASE II LEACH PAD NOW OPERATIONAL
January 8, 2018
Vancouver, British Columbia – FIORE GOLD LTD. (TSXV: F) (OTCQB: FIOGF) (“Fiore” or the “Company”) is pleased to provide an operational update on its Pan Mine in White Pine County, Nevada. Mine production in November totaled 436,290 tons of ore and 484,771 tons of waste, with the mine now consistently mining in excess of 14,000 tons per day (tpd) of ore. Gold production for November was 2,760 ounces, a significant increase over the 1,809 ounces produced in October.
The new Phase II leach pad is now in operation, with the first ore placed on the pad in late December [image 1, image 2.]. As the existing Phase I leach pad approaches its final design height, operating space on the pad has become constrained which reduced the leach cycle times. As a result, December gold production is expected to come in below forecast, however, with the new Phase II pad now in operation, production will improve as ore is placed on the new pad. Fiore is projecting gold production of 35-40,000 ounces in fiscal 2018 (October 2017 through September 2018), with gold production weighted towards the second half of FY2018 as higher-grade ore is mined.
Tim Warman, Chief Executive Officer of Fiore, commented: “November was our best month yet for gold production, and we’re looking forward to continued strong performance over the remainder of the fiscal year. With the new Phase II leach pad now operational, we can begin loading the test cells that will confirm the viability of adding a crushing and agglomeration circuit to the mine later in 2018. The successful completion and permitting of the new leach pad is a testament to the highly skilled operating and development team we’ve built at Fiore Gold, and the first-rate work done by our contractors.”
Exploration work aimed at increasing the resource and reserve base at Pan is also ongoing, with a number of drill targets identified proximal to the existing operations. Drilling is expected to commence in early 2018.
At our nearby Gold Rock project, the Nevada State Office of the Bureau of Land Management has completed its review of the Final Environmental Impact Statement (“FEIS”) and advanced it to the Washington DC office for final review and publication. The process to publish the FEIS is anticipated to be completed in the first quarter of 2018, with the Record of Decision (“ROD”) to follow within 45 days of publication. We believe actions by the US government to expedite this review process provides optimism that the process to issue the ROD will proceed in a timely manner.
Our corporate strategy is to grow Fiore Gold into a 150,000 ounce per year gold producer. To achieve this, we intend to:
- grow gold production at the Pan Mine from a planned 35-40,000 ounces in fiscal 2018 to between 40-50,000 ounces per year by fiscal 2019
- advance exploration and development of the nearby Gold Rock project, with a resource update planned for late 2018
- acquire additional production or near-production assets in Nevada and surrounding states
The scientific and technical information relating to Fiore Gold’s properties contained in this press release was approved by Ken Brunk (MMSA) Fiore Gold’s Technical Advisor and a “Qualified Person” under National Instrument 43-101.
On behalf of FIORE GOLD LTD.
Chief Executive Officer
1 (416) 639-1426 Ext. 1
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward Looking Statements
This news release contains “forward-looking statements” and “forward looking information” (as defined under applicable securities laws), based on management’s best estimates, assumptions and current expectations. Such statements include but are not limited to, statements with respect to the operation of the leach pad, gold production projections for fiscal 2018 and 2019, exploration drilling at Pan, FEIS and ROD for the Gold Rock project, Gold Rock resource update, goal to become a 150,000 ounce producer, goal to acquire additional production or near production assests, and other statements, estimates or expectations. Often, but not always, these forward-looking statements can be identified by the use of forward-looking terminology such as “expects”, “expected”, “budgeted”, “targets”, “forecasts”, “intends”, “anticipates”, “scheduled”, “estimates”, “aims”, “will”, “believes”, “projects” and similar expressions (including negative variations) which by their nature refer to future events. By their very nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Fiore Gold’s control. These statements should not be read as guarantees of future performance or results. Forward looking statements are based on the opinions and estimates of management at the date the statements are made, as well as a number of assumptions made by, and information currently available to, the Company concerning, among other things, anticipated geological formations, potential mineralization, future plans for exploration and/or development, potential future production, ability to obtain permits for future operations, drilling exposure, and exploration budgets and timing of expenditures, all of which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Fiore Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to vary materially from results anticipated by such forward looking statements include, but not limited to, risks related to the Pan Mine performance, risks related to the company’s limited operating history; risks related to international operations; risks related to general economic conditions, actual results of current or future exploration activities, unanticipated reclamation expenses; changes in project parameters as plans continue to be refined; fluctuations in prices of metals including gold; fluctuations in foreign currency exchange rates; increases in market prices of mining consumables; possible variations in ore reserves, grade or recovery rates; uncertainties involved in the interpretation of drilling results, test results and the estimation of gold resources and reserves; failure of plant, equipment or processes to operate as anticipated; the possibility that capital and operating costs may be higher than currently estimated; the possibility of cost overruns or unanticipated expenses in the work programs; availability of financing; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of exploration, development or construction activities; the possibility that required permits may not be obtained on a timely manner or at all; changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which Fiore Gold operates, and other factors identified in Fiore Gold’s filing with Canadian under its profile at www.sedar.com respecting the risks affecting Fiore and its business. Although Fiore has attempted to identify important factors that could 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. The forward-looking statements and forward-looking information are made as of the date hereof and are qualified in their entirety by this cautionary statement. Fiore disclaims any obligation to revise or update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements or forward-looking information contained herein to reflect future results, events or developments, except as require by law. Accordingly, readers should not place undue reliance on forward-looking statements and information