TORONTO, May 27, 2022
/CNW/ - Magna Gold Corp. (TSXV: MGR) (OTCQB: MGLQF) ("Magna" or the
"Company"), today announced operating and financial results for the
three months ended March 31, 2022 and
2021 ("Q1 2022" and "Q1 2021", respectively). All figures are in US
Dollars, unless otherwise expressed.
Q1 2022 Operating and Financial
Highlights
- Total tonnes mined during Q1 2022 were 7.3 million compared to
5.8 million during Q1 2021. This is an increase of 26%.
- Q1 2022 strip-ratio was 6.7:1 compared to 8.4:1 during Q1
2021.
- Tonnes of ore processed during Q1 2022 were 1.4 million
compared to 0.7 million during Q1 2021. This is an increase of
90%.
- Gold production increased 21% with 11,874 ounces produced
during Q1 2022 compared to 9,785 ounces produced during Q1
2021.
- Revenue for Q1 2022 increased 54% to $23.5 million compared to $15.3 million during Q1 2021, mainly due to the
San Francisco Mine achieving steady state commercial production at
the end of Q2 2021.
- Production costs of $21.3 million
during Q1 2022 compared to $15.6
million during Q1 2021. The 37% increase is due to larger
tonnage mined and higher processing rates achieved.
- Net loss was $3.3 million
($0.04 per share) during Q1 2022
compared to $3.4 million
($0.04 per share) during Q1
2021.
- Cash flow from operations during Q1 2022 was $6.6 million compared to $4.7 million during Q1 2021.
- Cash cost per gold ounce (1) decreased 8% to
$1,675 during Q1 2022 from
$1,826 during Q1 2021.
- Site all-in sustaining cost per gold ounce (1)
decreased 18% to $2,467 during Q1
2022 compared to $3,003 during Q1
2021.
Arturo Bonillas, President and
CEO of Magna stated: "I am very pleased to see the San Francisco
Mine maintain a steady state of operations for three consecutive
quarters now. As demonstrated by our results, strip ratio and cash
cost continue to trend downwards from where we were a year ago.
Gold production is in line with our operating plans and is
anticipated to increase as production is expected to be back
weighted in 2022."
The financial statements and MD&A for the three months ended
March 31, 2022 and 2021, are
available on SEDAR (www.sedar.com) and on the Company's website
(www.magnagoldcorp.com).
(1) Cash cost per gold ounce and site all-in
sustaining cost per gold ounce are non-GAAP financial performance
measures with no standard definition under IFRS. For more details,
refer to the non-GAAP Performance Measures section of the MD&A
for the three months ended March 31,
2022 and 2021.
About Magna Gold Corp.
Magna is a Mexico focused gold/silver production company
engaged in acquiring, exploring, developing and operating quality
precious metals properties in Mexico. It is committed to advancing its 100%
owned flagship San Francisco Mine, Margarita Silver Project and
other highly prospective mineral properties located in Sonora and in Chihuahua. The primary strength
of the Company is the team of highly experienced mining
professionals with a proven track record of developing properties
in Mexico from discovery to
production. Magna employs community members and services in its
operations.
Based on the NI-43-101 technical report "Pre-Feasibility
study for the San Francisco Gold Project, Sonora, Mexico" prepared by Micon, dated
August 8, 2020, San
Francisco operations are estimated to have measured and indicated
resources of 99,700,000 tonnes @ 0.446g/t Au containing 1,430,000
ounces of gold, and inferred resources of 11,374,000 tonnes @ 0.446
g/t containing 171,000 ounces of gold. The total proven and
probable reserves is 47,629,000 tonnes @ 0.495 g/t Au containing
758,000 ounces of gold. Mineral resources are inclusive of mineral
reserves. Mineral resources that are not mineral reserves do not
have demonstrated economic viability.
ON BEHALF OF THE BOARD OF DIRECTORS
Arturo Bonillas
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Qualified Person
James
Baughman (P. Geo.), Consulting Geologist and a Qualified
Person as defined by NI 43-101, has approved the scientific and
technical information in this news release.
Cautionary Statements
This News Release includes certain "forward-looking
statements" which are not comprised of historical facts.
Forward-looking statements include estimates and statements that
describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be
identified by such terms as "believes", "anticipates", "expects",
"estimates", "may", "could", "would", "will", or "plans". Since
forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Although these statements are
based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward-looking information in this news release
includes, but is not limited to, the Company's objectives, goals or
future plans, exploration results, potential mineralization
(including estimates of measured and indicated resources, inferred
resources and probable reserves), exploration and mine development
plans, production (including gold production expectations and
guidance), processing and mining expectations (including statements
regarding expansion and advancement of assets) and strip ratio
trends and expectations. Factors that could cause actual results to
differ materially from such forward-looking information include,
but are not limited to failure to identify mineral resources,
failure to convert estimated mineral resources to reserves, the
inability to complete a feasibility study which recommends a
production decision, the preliminary nature of metallurgical test
results, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, political
risks, uncertainties relating to the availability and costs of
financing needed in the future, changes in equity markets,
inflation, changes in exchange rates, fluctuations in commodity
prices, delays in the development of projects, capital, operating
and reclamation costs varying significantly from estimates and the
other risks involved in the mineral exploration and development
industry, risks related to the effects of COVID-19 on
the Company; and those risks set out in the Company's public
documents filed on SEDAR. Although the Company believes that the
assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all. The
Company disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
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SOURCE Magna Gold Corp.