Expected to produce between 92,000 and 98,000
ounces of gold at All-In-Sustaining-Costs between CAD$695 - $755 /
oz. (US$521-566/oz.*)
Canadian dollars unless otherwise
noted
VANCOUVER, Jan. 16, 2019 /CNW/ - Atlantic Gold
Corporation (TSX-V: AGB) ("Atlantic" or the
"Company") is pleased to report that its Moose
River Consolidated Gold Mine ("MRC") in Nova
Scotia exceeded its 2018 production guidance and reports gold
production and sales for the fourth quarter and full year 2018.
Following the successful ramp up and full year 2018 production for
the initial Phase 1 of operations, the company is also announcing
2019 production guidance which includes:
Production
Guidance
|
2019**
|
Production
between
|
92,000-98,000,000
ounces of gold
|
Cash Costs
between
|
CAD$560-$610/oz.
(US$420-458/oz.*)
|
All-In-Sustaining-Costs (AISC) between
|
CAD$695/oz. -
$755/oz. (US$521-566/oz.*)
|
Capital expenditures
other than Sustaining Capital
|
$5 to $7
million
|
Sustaining capital
expenditures
|
$7 to $9
million
|
*assumes an exchange
rate of CAD$0.75
|
**see "Non-IFRS
Performance Measures" section at the end of this news
release
|
Operating and production statistics for both the full fourth
quarter and 2018 can be found in the below table:
Production
|
Q4
2018
|
2018*
|
Tonnes Milled
(t)
|
540,903
|
2,108,420
|
Gold Head Grade
(g/t)
|
1.37
|
1.41
|
Gold Produced
(oz)
|
22,509
|
90,531
|
Gold Recovery
(%)
|
94.7%
|
94.9%
|
Sales statistics for both the full fourth quarter and 2018 can
be found in the below table:
Sales
|
Q4
2018
|
2018*
|
Gold ounces
sold
|
23,405
|
90,346
|
*2018 represents
12 months of production and includes 2 months of ramp-up as
commercial production was declared effective March 1,
2018.
|
Maryse BĂ©langer, President and Chief Operating Officer,
commented "We are proud to have exceeded our 2018 production
guidance. The production of 22,509 ounces during the quarter,
allowed us to finish the year slightly above our full year
production guidance of 82,000-90,000 ounces, as announced on
January 19, 2018. Achieving three
quarters of steady-state production in just the first year of
operations is an important milestone. I am proud of what the team
has accomplished, and it was made possible by their hard work,
attention to safety and dedication. With a full year of
production at average reserve grade, we continue to see a
good resource model to production reconciliation.
While full year production is expected to be between 92,000
and 98,000 ounces we have planned for a lower
production rate for the first quarter of 2019 at higher than
average cash costs and AISC. The mine production schedule,
mill liner change scheduled for late January, an allowance for
weather events and initiating the rebuilds on the mining fleet all
contribute to lower production forecast and higher cash costs and
all-in sustaining costs for the period."
The Company is still compiling assay results from its drilling
programs completed in late 2018 at Touquoy, Fifteen Mile Stream,
Cochrane Hill and the 149 Deposit.
Moreover, based on exploration success at the different projects to
date Atlantic plans on continuing its exploration activities
throughout 2019. The release of updated mineral resource and
mineral reserve estimates plus the combined life of mine plan (LOM)
is planned for the latter half of Q1 2019.
Furthermore, the Company plans to release its fourth quarter and
year end 2018 financial results on March
5th, 2019 pre-market.
Qualified Persons
Kodjo Afewu, Ph.D., SME (CP), Plant Manager for the Company and
a Qualified Person as defined by NI 43-101, has approved the
scientific and technical information contained in this news
release.
Conference Call Details
Atlantic Gold Corporation is hosting a live Q&A conference
call to discuss the fourth quarter and year end 2018 results on
March 5th at 2:00 pm Eastern time (11:00 am Pacific time) with the Atlantic
executive team.
Further updates will be provided in due course.
On behalf of the Board of Directors,
Steven Dean
Chairman and Chief Executive Officer
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.
About Atlantic:
Atlantic is a well-financed, growth-oriented gold development
group with a long term strategy to build a mid-tier gold production
company focused on manageable, executable projects in
mining-friendly jurisdictions.
Atlantic is focused on growing gold production in
Nova Scotia beginning with its MRC
phase one open pit gold mine which declared commercial production
in March 2018, and its phase two Life
of Mine Expansion which will ramp up gold production to + 200,000
ounces per year (by 2022) at industry lowest decile cash and
all-in-sustaining-costs (as stated in the Company's news releases
dated January 16, 2019 and
January 29, 2018).
Atlantic is committed to the highest standards of
environmental and social responsibility and continually invests in
people and technology to manage risks, maximize outcomes and
returns to all stakeholders.
Forward-Looking Statements:
This release contains certain "forward-looking statements"
and certain "forward-looking information" as defined under
applicable Canadian and U.S. securities laws. Forward-looking
statements and information can generally be identified by the use
of forward-looking terminology such as "may", "will", "expect",
"intend", "estimate", "anticipate", "believe", "continue", "plans"
or similar terminology. Forward-looking statements and information
are not historical facts, are made as of the date of this press
release, and include, but are not limited to, statements regarding
discussions of future plans, guidance, projections, objectives,
estimates and forecasts and statements as to management's
expectations with respect to, among other things, the activities
contemplated in this news release and the timing and receipt of
requisite regulatory, and shareholder approvals in respect thereof.
Forward looking information, including future oriented financial
information (such as guidance) provide investors with an improved
ability to evaluate the underlying performance of the
Company. Forward-looking statements in this news release
include, without limitation, statements related to proposed
exploration and development programs, grade and tonnage of material
and resource estimates. These forward-looking statements involve
numerous risks and uncertainties and actual results may vary.
Important factors that may cause actual results to vary include
without limitation, the timing and receipt of certain approvals,
changes in commodity and power prices, changes in interest and
currency exchange rates, risks inherent in exploration estimates
and results, timing and success, inaccurate geological and
metallurgical assumptions (including with respect to the size,
grade and recoverability of mineral reserves and resources),
changes in development or mining plans due to changes in
logistical, technical or other factors, unanticipated operational
difficulties (including failure of plant, equipment or processes to
operate in accordance with specifications, cost escalation,
unavailability of materials, equipment and third party contractors,
delays in the receipt of government approvals, industrial
disturbances or other job action, and unanticipated events related
to health, safety and environmental matters), political risk,
social unrest, and changes in general economic conditions or
conditions in the financial markets. In making the forward-looking
statements in this press release, the Company has applied several
material assumptions, including without limitation, the assumptions
that: (1) market fundamentals will result in sustained gold demand
and prices; (2) the receipt of any necessary approvals and consents
in connection with the development of any properties; (3) the
availability of financing on suitable terms for the development,
construction and continued operation of any mineral properties; and
(4) sustained commodity prices such that any properties put into
operation remain economically viable. Information concerning
mineral reserve and mineral resource estimates also may be
considered forward-looking statements, as such information
constitutes a prediction of what mineralization might be found to
be present if and when a project is actually developed. Certain of
the risks and assumptions are described in more detail in the
Company's audited financial statements and MD&A for the year
ended December 31, 2017 and for the
quarter ended September 30, 2018 on
the Company's SEDAR profile at www.sedar.com. The actual results or
performance by the Company could differ materially from those
expressed in, or implied by, any forward-looking statements
relating to those matters. Accordingly, no assurances can be given
that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
impact they will have on the results of operations or financial
condition of the Company. Except as required by law, the Company is
under no obligation, and expressly disclaim any obligation, to
update, alter or otherwise revise any forward-looking statement,
whether written or oral, that may be made from time to time,
whether as a result of new information, future events or otherwise,
except as may be required under applicable securities laws.
Non-IFRS Performance Measures
The Company has included certain non-IFRS measures in this
news release. The company believes that these measures, in
addition to conventional measures prepared in accordance with IFRS,
provide investors with an improved ability to evaluate the
underlying performance of the company. The non-IFRS measures are
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures do not
have any standardized meaning prescribed under IFRS and therefore
may not be comparable with other issuers. Readers should
refer to the Company's management discussion and analysis,
available on the Company's profile on SEDAR and on the Company's
website, under the heading "Non-IFRS Performance Measures" for a
more detailed discussion of how the Company calculates certain such
measures and reconciliation of certain measures to IFRS
terms.
Cash costs
Cash costs are a common financial performance measure in the
gold mining industry but with no standard meaning under IFRS.
Atlantic reports total cash costs on a sales basis. The Company
believes that, in addition to conventional measures prepared in
accordance with IFRS, such as sales, certain investors use this
information to evaluate the Company's performance and ability to
generate operating earnings and cash flow from its mining
operations. Management uses this metric as an important tool to
monitor operating cost performance.
Cash costs include production costs such as mining,
processing, refining and site administration, less non-cash
share-based compensation divided by gold ounces sold to arrive at
total cash costs per gold ounce sold. Costs include royalty
payments and permitting costs Production costs are exclusive of
depreciation. Other companies may calculate this measure
differently.
All-in sustaining costs
The Company believes that AISC more fully defines the total
costs associated with producing gold. The company calculates all-in
sustaining costs as the sum of total cash costs (as described
above), corporate general and administrative expense (net of
stock-based compensation), reclamation cost accretion and
amortization and sustaining capital, all divided by the gold ounces
sold to arrive at a per ounce figure.
Other companies may calculate this measure differently as a
result of differences in underlying principles and policies
applied. Differences may also arise due to a different definition
of sustaining versus growth capital.
SOURCE Atlantic Gold Corporation