Trek Mining Releases Second Quarter Results
August 28 2017 - 5:29PM
Trek Mining Inc. (TSX-V:TREK) (“Trek Mining” or
“the Company”) is pleased to announce that its financial results
for the second quarter ended June 30, 2017 and the accompanying
Management’s Discussion and Analysis are available for download on
the Company’s website at www.trekmining.com and at
www.sedar.com. All dollar amounts are in United States dollars.
Quarterly highlights and recent
developments
- Completed a feasibility study for the Aurizona Gold Mine
(“Aurizona”) in Brazil, supporting the viability of constructing an
open-pit gold mine with a net present value (“NPV5%”) of $197
million and an internal rate of return (“IRR”) of 34% based on a
gold price of $1,250 per ounce
- Awarded the EPCM contract for development of Aurizona to
Ausenco Engineering Canada Inc.
- Confirmed with exploration drilling that gold mineralization at
Aurizona’s principal ore deposit extends at least 350 metres to the
west along strike and also at depth below the existing reserve
pit
- Continued ramp-up of the Koricancha Mill in Peru with Q2-2017
sales of 2,545 ounces of gold
On July 31, 2017, the Company released the results
of a feasibility study for Aurizona, which is based on a new mine
plan and mineral reserve estimate and outlines the design of an
open-pit gold mine producing an average of 136,000 ounces of gold
per year, with an initial 6.5-year mine life and an NPV5% of $197
million and IRR of 34% based on a gold price of $1,250 per ounce
($254 million and 42% at $1,350 per ounce gold price,
respectively). The Company is working to arrange project
construction financing and has commenced early works activities in
preparation for full-scale construction in the second half of 2017,
with the objective of pouring gold at Aurizona by year-end
2018.
Concurrent with development, exploration is
underway at Aurizona with the objective of identifying additional
gold mineralization that can extend the mine life. Results from
6,839 metres drilled at Piaba West have successfully demonstrated
that significant gold mineralization continues below and up to 350
metres along strike of the Piaba gold deposit reserve pit. The
Company expects to complete 30,000 metres of drilling in 2017
focused on near-mine targets and targets located along strike from
existing reserves.
Gradual production ramp-up at the Koricancha Mill
continues, with 2,545 ounces of gold sold in Q2-2017. The Company
is implementing a number of strategies to expand its customer base
and bring additional mineralized feed to the mill, including the
recent commissioning of a feed-receiving depot in northern
Peru.
At June 30, 2017, the Company had $74.2 million in
cash and marketable securities, comprising $68.7 million in cash
and cash equivalents and $5.5 million in available-for-sale
investments, and no cash debt, with a working capital balance of
$66.0 million.
On behalf of the Board of Trek Mining
Inc.
“Christian Milau”
CEO & Director
About Trek Mining Inc.
Trek Mining is a Canadian mining company with a
portfolio of production, near-production and exploration-stage
projects in North and South America. The Company is producing gold
from its Koricancha Mill, a custom-built gold and silver ore
processing facility in Peru, and expects to commence construction
in the second half of 2017 at its past-producing Aurizona Gold Mine
in Brazil with the objective of pouring gold at Aurizona by the end
of 2018. Trek Mining’s exploration properties include both
near-mine and district exploration opportunities at Aurizona; the
Warintza porphyry copper-molybdenum exploration project in
Southeastern Ecuador; the Ricardo porphyry copper-molybdenum
exploration project in Chile; and Elk Gold, a past-producing
high-grade gold mine in British Columbia, Canada. Further
information about Trek Mining’s business strategy and portfolio of
assets is available at www.trekmining.com or by email
at ir@trekmining.com.
Trek Mining Contacts
Christian Milau, Chief Executive OfficerRhylin
Bailie, Vice President Investor RelationsTel: +1 604-558-0560Email:
ir@trekmining.com
Technical Information
Scott Heffernan, M.Sc., P.Geo., the Company’s EVP
Exploration, is a Qualified Person under National Instrument 43-101
and has approved the technical and scientific disclosure throughout
this news release.
Cautionary Notes
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as such term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This document contains certain forward-looking
information and forward-looking statements within the meaning of
applicable securities legislation (collectively “forward-looking
statements”). The use of the words “will”, “expects”, “hopes”,
“objective”, “working”, “expected”, “expectation” and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements contained in this press release include
statements regarding planned exploration activities and results at
Aurizona, and the anticipated restart of production at Aurizona.
Although Trek believes that the expectations reflected in such
forward-looking statements and/or information are reasonable, undue
reliance should not be placed on forward-looking statements since
Trek can give no assurance that such expectations will prove to be
correct. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements, including the risks, uncertainties and
other factors identified in Trek’s periodic filings with Canadian
securities regulators, and assumptions made with regard to: the
anticipated results of the feasibility study for Aurizona; the
anticipated Board of Directors decision to approve construction of
Aurizona; the ability to raise the capital required to fund
construction and development of Aurizona; the ability to restart
production at Aurizona; timing of the anticipated restart of
production; and the Company’s ability to resume exploration
activities at the Warintza Project. Furthermore, the
forward-looking statements contained in this news release are made
as at the date of this news release and Trek does not undertake any
obligations to publicly update and/or revise any of the included
forward-looking statements, whether as a result of additional
information, future events and/or otherwise, except as may be
required by applicable securities laws.