VANCOUVER, Jan. 19, 2018 /CNW/ - Leagold Mining Corporation
(TSX:LMC; OTCQX:LMCNF) ("Leagold" or "the Company") reports that
2018 gold production at Los Filos is expected to be within the
range of 215,000 to 240,000 ounces at an all-in sustaining cost
(AISC) of $875 to $925 per ounce ("oz").
Leagold CEO Neil Woodyer stated:
"The 2018 production guidance range includes growth of 12% to 25%
over the 191,195 oz produced in 2017. Our 2018 outlook benefits
from the operational improvements implemented since we acquired Los
Filos in April 2017 and several
optimizations planned for the year ahead. During Q2 2018, we will
realize the benefits from the overland conveyor and agglomerator
capital projects. In addition, the mine plan sequence is scheduling
higher gold production during H2 2018. As a result of this
production profile, we expect higher costs in H1 2018 and lower
costs during H2 2018. Looking ahead and considering the highly
successful exploration programs in 2017 that significantly
increased both the size and grade of our mineral resources, we are
now in a strong position to evaluate the benefits of building a
carbon-in-leach processing plant at Los Filos."
Figure 1: 2018 Production Guidance Range, illustrated with an
approximate quarterly profile
2018 Operations Outlook
- Gold production and AISC are expected to improve throughout
2018, in line with the steady improvements achieved in 2017 (see
Figure 1):
-
- Current open pit mine plan sequence schedules higher grades
and lower strip ratios during H2 2018, compared to H1 2018. In
particular, the Bermejal open pit mining sequence anticipates more
waste mining and lower grades during H1 2018, with improvements to
both grade and strip ratio during H2 2018
- Los Filos Underground mining rates have been progressively
improving, and achieved 1,300 tonnes per day (tpd) in December 2017. The underground mining rate is
anticipated to increase to an average of 1,500 tpd for 2018
- Heap leach reprocessing is expected to incur higher
expenditures during H1 2018 as the majority of the preparatory
pressure injection work is performed, with significantly reduced
spending planned for the second half of the year
- Commissioning of the overland conveyor and agglomerator
projects is expected during Q1 2018 leading to progressive
improvements in heap leach processing and gold recovery through the
remainder of 2018
- Growth capital programs of $9
million are budgeted for current operations, including the
remaining amounts to complete the overland conveyor and
agglomerator.
- $13 million has been allocated to
drilling and exploration programs at Los Filos Underground to
improve short-term mine planning and add resources and reserves.
These in-fill and step-out programs include a total of 62,000
metres of drilling.
Bermejal Underground Expansion Project Update
The Bermejal Underground expansion project, which is expected to
meaningfully increase production in 2019 and beyond, continues to
progress well. The decline has now advanced to over 320 metres and
is on schedule to access the test mining stopes in mid-2018, with
$12 million remaining to be spent in
2018. The next phase of Bermejal Underground capital expenditure
amounts will be provided upon completion of detailed mine
engineering and plant design optimizations, which are also
anticipated to be completed in mid-2018.
Qualified Persons
Doug Reddy, P.Geo, Leagold's
Senior Vice President – Technical Services, is a Qualified Person
under NI 43-101, and has reviewed and approved the technical
contents of this news release on behalf of Leagold.
About Leagold Mining Corporation
Leagold is building a new mid-tier gold producer with a focus on
opportunities in Latin America.
Leagold is based in Vancouver,
Canada and is listed on the TSX under the trading symbol
"LMC" and trades on the OTCQX market as "LMCNF". The 2017
acquisition of the Los Filos Mine, a low-cost gold producer in
Mexico, provides an excellent
platform for growth.
This news release contains "forward-looking statements" and
"forward looking information" (as defined under applicable
securities laws), including but not limited to plans for future
development of the Los Filos mine. Generally, these forward-looking
statements can be identified by the use of forward-looking
terminology such as "expects", "expected", "budgeted", "forecasts"
and "anticipates". Forward-looking statements and information,
while based on management's best estimates and assumptions, are
subject to risks and uncertainties that may cause actual results to
be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks
related to the Los Filos mine, risks related to the successful
integration of the acquisition; risks related to international
operations; risks related to general economic conditions and credit
availability, 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 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 Leagold operates. Although
Leagold 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
Leagold disclaims any obligation to 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. Accordingly, readers should not
place undue reliance on forward-looking statements and information.
Please refer to Leagold's most recent filings under its profile at
www.sedar.com for further information respecting the risks
affecting Leagold and its business.
SOURCE Leagold Mining Corporation