Marigold Mine Produced 42,960 Ounces Of Gold In Q1

 

VANCOUVER, BC - Paul Benson, President and CEO said, "We produced over 78,000 gold equivalent ounces with all three operations performing well during the quarter. Seabee had a standout quarter, with the lowest cash costs since we acquired the operation in 2016 and record mill throughput of more than 1,030 tonnes per day. With development at Chinchillas remaining on track for delivery in the second half of the year, and production at Seabee and Marigold ramping up through the year, our operating and financial performance positions us well for growth in 2018 and 2019."

In the first quarter of 2018, the Marigold mine produced 42,960 ounces of gold, in line with guidance. Production was 19% less than the previous quarter, due to lower ore stacked in the fourth quarter of 2017. During the quarter, 16.2 million tonnes of material were mined, 16% more than the fourth quarter of 2017, reflecting an increase in operating days for the quarter due to a resumption of normal mining activities. We expect quarterly material movement to increase in the second quarter of 2018, and further in the second half of the year as four additional haul trucks are added to the fleet.  Approximately 7.1 million tonnes of ore were delivered to the heap leach pads at an average gold grade of 0.37 g/t in the quarter. This compares to 5.8 million tonnes of ore delivered to the heap leach pads at a gold grade of 0.37 g/t in the fourth quarter of 2017. The strip ratio was 1.3:1 for the quarter, a 7% decrease compared to the previous quarter.

A total of 42,078 ounces of gold were sold at an average realized price of $1,331 per ounce during the first quarter of 2018, a decrease of 18% from the 51,420 ounces of gold sold at average realized price of $1,269 per ounce during the fourth quarter of 2017. The main focus of our 2018 exploration program is to conduct infill drilling of the Red Dot resource area and to explore higher grade structural zones within the Mackay Phase 5 pit.  During the first quarter, we completed a total of 48 reverse circulation drillholes for 17,170 meters on these targets. A total of 20,012 ounces were sold at an average realized price of $1,340 per ounce of gold during the first quarter of 2018, 17% lower than the 23,969 ounces of gold sold in the fourth quarter of 2017, at an average realized price of $1,276 per ounce of gold. The reduction in ounces sold is a result of timing of sales recorded.