FIORE GOLD LTD.: PAN MINE ACHIEVES RECORD ORE AND GOLD PRODUCTION
Vancouver, British Columbia – FIORE GOLD LTD. (TSXV: F) (“Fiore”) is pleased to provide an operational update on its Pan Mine in White Pine County, Nevada. Mine production in September totaled 445,228 tons of ore and 411,402 tons of waste, already exceeding our targeted ramp-up to 14,000 tons per day (tpd) of ore by January 2018, and a significant step up from the 10,425 tpd of ore mined in August. Gold production for September was 1,602 ounces, an increase of over 160% from the previous month. Both ore and gold production have set a new record for the Pan Mine since mining was restarted in March of 2017.
As in any heap leach operation, increases in gold production will lag behind ore production, so we expect to see further increases in gold production in October as a result of September’s increased ore production. Fiore is targeting a steady-state mining rate of 14,000 tons of ore per day by January 2018, with projected gold production of 35-40,000 ounces in fiscal 2018 (October 2017 through September 2018).
In conjunction with the increase in mining rates, work is advancing rapidly on the Phase II Leach Pad expansion, which will add approximately 15 million tons of leach pad capacity at Pan. As of October 27th, the crews had installed approximately 50% of the HDPE lining, and had begun placing the coarse over-liner material and solution piping. Photos of the construction progress can be viewed here [Image 1, image 2, image 3 and image 4].
Tim Warman, Chief Executive Officer of Fiore, commented: “The Pan Mine continues to perform strongly, with ore production reaching our 14,000 tpd target and crews making excellent progress on the new leach pad. The increased ore production is also leading to increased gold production and significantly lower costs per ton than were experienced during the ramp-up phase. The strong showing at Pan is directly attributable to the excellent work by Fiore Gold’s technical and operations staff, as well as the teams of our mining contractor Ledcor and leach pad contractor VT Construction.”
Exploration work aimed at increasing the resource and reserve base at Pan is also ongoing, with a number of drill targets identified proximal to both the North and South Pits. Drilling is expected to commence in early 2018.
Fiore’s goal is to build on the existing operations at our Pan Mine in Nevada to become a 150,000 ounce/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 Chief Operating Officer and a “Qualified Person” under National Instrument 43-101.
On behalf of FIORE GOLD LTD.
Chief Executive Officer
1 (416) 639-1426 Ext. 1
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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 future increases in gold production, projections for fiscal year 2018, expectation regarding leach pad construction and its capacity, statements regarding future costs, all goals and expectation describing Fiore’s corporate strategy and the plans and anticipated results for future exploration and development of Fiore’s properties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “expects”, “expected”, “budgeted”, “forecasts”, “targets” and “anticipates”. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such statements, including but not limited to: risks related to the Pan Mine, the Gold Rock Project and the Golden Eagle Project; risks related to international operations; risks related to general economic conditions, actual results of current 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; failure of plant, equipment or processes to operate as anticipated; 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, changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in countries in which GRP and Fiore operate. 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. Please refer to Fiore’s most recent filings under its profile at www.sedar.com for further information respecting the risks affecting Fiore and its business.