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Operations

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Mineral Ridge

Current Operations
THIRD QUARTER 2017

Production at Mineral Ridge in Q3 2017 totalled 4,935 ounces of gold and 2,588 ounces of silver compared to 9,981 ounces of gold and 4,630 ounces of silver in Q3 of 2016. Gold and silver production for the first nine months of 2017 totalled 15,336 ounces of gold and 7,947 ounces of silver, representing decreases of 46.3% and 38.3%, respectively, over the same period in 2016. The lower metal production is attributed to fewer tons being mined and processed as a result of the decreasing size of the Mary LC and Brodie pits and slower mining rates as current production in these pits winds down.A summary of the Q3 2017 operating results is presented in the Company's October 27, 2017 news release.

Current mining is expected to continue through the first week of November 2017, at which time mining will be suspended while evaluations are conducted by Mine Technical Services ("MTS") on the mine's remaining internal resources for a NI-43-101 compliant resource and reserve estimate and updated mine plan. Based on the positive results from the recently completed feasibility study, the Company intends to pursue financing for the construction of a 4,000 TPD milling facility with CIL recovery and dry stack tailings circuit. The Company also intends to add additional run of mine resources, when confirmed by MTS, to the already confirmed heap leach resource for processing and recovery of the contained precious metals. Construction of the milling facility will begin once financing is obtained and the Plan of Operations Amendment and Water Pollution Control permit are approved and issued. Permit approval is expected in early 2018.

SECOND QUARTER 2017

Production at Mineral Ridge in Q2 of 2017 totalled 4,660 ounces of gold and 2,505 ounces of silver. A summary of the Q2 2017 operating and financial results is presented in the Company's August 8, 2017 and August 29, 2017 news releases with complete details provided in the Q2 2017 Financial Statements and Management Discussion & Analysis.

HIGHLIGHTS FOR THE SECOND QUARTER ("Q2") ENDED JUNE 30, 2017 AND SUBSEQUENT EVENTS
  • 4,660 ounces of gold were produced at the Mineral Ridge mine during Q2 of 2017, compared to 10,089 ounces during Q2 of 2016.
  • Revenue of $6.3 million, compared to $12.4 million during Q2 of 2016.
  • Total cash cost per ounce of gold sold(1) of $968 compared to $879 during Q2 of 2016.
  • Mine operating earnings of $1.1 million compared to $3.1 million during Q2 of 2016.
  • Net loss of $0.3 million ($0.00 basic and diluted per share), compared to net earnings of $1.2 million ($0.01(2) basic and diluted per share) during Q2 of 2016.
  • Adjusted net earnings(1) of $0.5 million ($0.00 basic and diluted per share) compared to $2.2 million ($0.01 basic and diluted per share) for Q2 of 2016.
  • Adjusted EBITDA(1) of $1.0 million ($0.00 basic and diluted per share) compared to $2.8 million ($0.02 basic and diluted per share) during Q2 of 2016.
  • On July 12, the Company reported a measured and indicated mineral resource estimation of 121,700 ounces of gold contained on the heap leach pads at the Mineral Ridge Mine.
  • August, the Company announced the initiation of a bankable feasibility study with the objective to support the proposed financing and construction of a mill facility at Mineral Ridge to process the heap leach material and potentially mineralized material mined in the future.

HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2017
  • 10,401 ounces of gold were produced at the Mineral Ridge mine, compared to 18,597 ounces produced during the six months ended June 30, 2016.
  • Revenue of $16.2 million, compared to $21.9 million during the six months ended June 30, 2016.
  • Total cash cost per ounce of gold sold(1) of $911, compared to $844 during the six months ended June 30, 2016.
  • Mine operating earnings of $3.5 million, compared to $4.9 million during the six months ended June 30, 2016.
  • Net loss of $0.2 million ($0.00 basic and diluted per share), compared to net earnings of $2.3 million ($0.01 basic and diluted per share) during the six months ended June 30, 2016.
  • Adjusted net earnings(1) of $1.9 million ($0.01 basic and diluted per share), compared to $3.3 million ($0.02 basic and diluted per share) during the six months ended June 30, 2016.
  • Adjusted EBITDA(1) of $3.0 million ($0.02 basic and diluted per share), compared to $4.4 million ($0.02 basic and diluted per share) million during the six months ended June 30, 2016.
(1)This is a non-IFRS measure; refer to Non-IFRS Measures section of this press release and the Company's Management Discussion & Analysis for Q2 of 2016 for a complete definition and reconciliation to the IFRS results reported in the Company's financial statements for Q2 of 2016.
(2) Please see Equity section of the MD&A.




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