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Actually, I played the US version (NMKTF) - bailed way too soon to play other ponies. This one really soared. Congrats!
Hey 4G, I must have gotten in around the same time as you. Bought for $1.05 and $1.06 last July/August.. Now $3.80 in less than 1 year.. Not too shabby, almost 4 bagger. Think Q2/16 will be awesome and expect a good jump over $4 when they report..
Out NMKTF - prolly more here, but I made some coin. Played it from 1.06 (even bought a few at 1.03) all the way to 1.84 - can't believe no one else posted here over all these months. Oh well, next!
NEWMARKET GOLD FLAGSHIP FOSTERVILLE GOLD MINE POURS ITS ONE MILLIONTH OUNCE
February 2, 2016
VANCOUVER, BRITISH COLUMBIA—(Marketwired - Feb. 2, 2016) - Newmarket Gold (“Newmarket” or the “Company”)(TSX:NMI)(OTCQX:NMKTF) is pleased to announce that the Company’s flagship Fosterville Gold Mine, the largest producing gold mine in Victoria, Australia, poured its one millionth ounce of gold on January 7, 2016. This important milestone represents over 11 years of continuous operations since mining commenced in 2004 and gold first poured in April of 2005.
Mr. Douglas Forster, President and Chief Executive Officer, Newmarket Gold commented: “Fosterville’s one millionth ounce of safe and sustainable production represents an important milestone for the mine and its entire team of dedicated employees. In its first one million ounces of production, Fosterville has logged more than 8 million man hours, processed 8.4 million tonnes of ore and accomplished world class recovery using a BIOX treatment system, all while maintaining an excellent safety record. With the commitment from all its employees, Fosterville will continue to deliver remarkable performance as it works towards producing its next million ounces. ”
The millionth ounce is a significant achievement for Fosterville, surpassing the reserve estimated in the initial feasibility study, which included deepening three existing pits into the sulphide ore zone and the development of the underground mine currently in operation. A significant resource base, ongoing drilling success and a recent new high-grade visible gold discovery, all bode well for the future of ongoing strong gold production at Fosterville.
Mr. Ian Holland, General Manager, Fosterville Gold Mine, commented: “The key to Fosterville’s success has been our strong culture focused on best-in-class safety practices, sustainable environmental solutions and significant investment in our local community. I’d like to thank and acknowledge the outstanding contribution from current and previous employees and stakeholders. Fosterville remains Victoria’s largest and foremost gold producer with fantastic upside potential from our recent geological discoveries within the Lower Phoenix area, including the exciting Eagle Fault.”
About Fosterville Gold Mine
The current mining and treatment operations are the latest phase in an already historic mining region. Previous mining eras include the late 1890’s, when 47,000 ounces were produced and 1991 to 2001 where open cut mining and heap leaching produced 240,000 ounces.
The reserve estimated in the 2003 initial feasibility study included deepening three existing pits into the sulphide ore zone and commencement of the present day underground mine. Commissioning of a modern gold processing plant which included bacterial oxidation (“BIOX”) was undertaken in 2005. In 2009, to further boost recoveries, a unique heated leach plant was built.
Today, Fosterville continues to produce extremely high-grade gold results, often containing visible gold, both in drill core and underground mine faces. Currently, the Lower Phoenix system is one area that is a major source of ore at Fosterville.
During 2015, underground drilling programs, using four underground diamond drills, focused on the definition and exploration of multiple near mine underground gold targets including the Phoenix, Lower Phoenix, Lower Phoenix Footwall (LPFW), East Dipping, Kestrel and Eagle Faults. The high-grade, visible gold Eagle Fault zone was discovered in early 2015. The Eagle zone currently contributes to Fosterville’s production profile and continues to be explored, as Eagle remains open at depth.
Fosterville’s modern sulphide treatment plant is one of the world’s leading BIOX systems and has achieved record recoveries. Fosterville recorded an all-time high recovery level of 89.7% at the end of the third quarter of 2015. To further improve recoveries, Fosterville has installed a new gravity circuit which is expected to become operational during Q2 2016.
By the end of 2015, Fosterville set new annual records across its operations including record gold production of 123,095 ounces, record grade of 6.11 g/t and record recovery of 88.5%.
Looking ahead to 2016, Fosterville is expected to produce between 110,000 - 120,000 ounces of gold with operating cash costs per ounce sold between US$500 - $575.
Qualified Person
Mark Edwards, MAusIMM (CP), MAIG, General Manager, Exploration, Newmarket Gold, is a “qualified person” as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this news release.
ON BEHALF OF THE BOARD
Douglas Forster, M.Sc., P.Geo., President & Chief Executive Officer
About Newmarket Gold Inc.
Newmarket Gold is a Canadian-listed gold mining and exploration company with three 100% owned operating mines across Australia. The Company is focused on creating substantial shareholder value by maintaining a strong foundation of quality gold production, over 200,000 ounces annually, generating free cash flow and maintaining a large resource base as it executes a clearly defined gold asset consolidation strategy. The Company is focused on sustainable operating performance, a disciplined approach to growth, and building gold reserves and resources while maintaining the high standards that the Newmarket Gold core values represent.
Non-IFRS Disclosure
The Company believes that investors use certain non-IFRS measures as indicators to assess gold mining companies, specifically Operating Cash Costs per Ounce and All-In Sustaining Cash Costs per Ounce. In the gold mining industry, these are common performance measures but do not have any standardized meaning. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, it is 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.
Operating Cash Costs per Ounce of Gold are calculated by deducting silver sales revenue as a by-product from operating expenses per the consolidated statement of operations, then dividing by the gold ounces sold during the applicable period. Operating expenses include mine site operating costs such as mining, processing and administration as well as royalties, however excludes depletion and depreciation, share-based payments and rehabilitation costs.
Cautionary Note Regarding Forward Looking Information
Certain information set forth in this news release contains “forward-looking statements”, and “forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company’s expectations about its business and operations, and are based on the Company’s current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as “will”, “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These statements are not guarantees of future performance or outcomes and undue reliance should not be placed on them. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, 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. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are included in this press release or incorporated by reference herein, except in accordance with applicable securities laws.
Laura Lepore
Director, Investor Relations
Newmarket Gold, Inc.
T: 416.847.1847
E: llepore@newmarketgoldinc.com
www.newmarketgoldinc.com
Ryan King
VP, Corporate Communications
Newmarket Gold, Inc.
T: 604.559.8040
E: rking@newmarketgoldinc.com
http://www.newmarketgoldinc.com/news/news-releases/newmarket-gold-flagship-fosterville-gold-mine-pour-20160202
VANCOUVER, BRITISH COLUMBIA—(Marketwired - Jan. 18, 2016) - Newmarket Gold Inc. (“Newmarket” or the “Company”)(TSX:NMI)(OTCQX:NMKTF) today announced production results for the three and twelve months ended December 31, 2015. All dollar amounts are in US dollars unless otherwise noted
http://www.newmarketgoldinc.com/news/news-releases/newmarket-gold-achieves-record-gold-production-of--20160118
Could this be the next saddle reef discovery:
http://www.equedia.com/could-this-be-the-next-saddle-reef-discovery/#comment?utm_source=January+17%2C+2016&utm_campaign=January+17%2C+2016&utm_medium=email
Newmarket Gold Continues To Intersect Significant High-Grade Visible Gold Mineralization At Fosterville Eagle Fault, Extends Zone Along Strike, Open For Expansion
1/11/16, 9:40 AM
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 01/11/16 -- Newmarket Gold ("Newmarket" or the "Company")(TSX: NMI)(OTCQQX: NMKTF) is pleased to announce new high-grade drill results from 60 drill holes, totaling 13,076 meters (m) focused on further defining near mine underground gold targets on the Phoenix, Lower Phoenix, Lower Phoenix Footwall (LPFW), East Dipping, Kestrel and Eagle Faults at Fosterville Gold Mine, Victoria. Drill results include extremely high-gold grades and continue to support the potential to increase Fosterville's Mineral Resources and Reserves.
Highlights and Key Drill Intercepts at Fosterville Gold Mine
(Outside of Indicated Mineral Resources Reported December 2014)
-- Drilling on the Eagle Fault continues to return high-grade
mineralization containing visible gold. Key drill intercepts include 161
g/t Au(1)over 7.35 m (ETW 4.94 m) in hole UDH1481 (Including 499 g/t
Au(1) over 2.25 m) and 32.02 g/t Au(1)over 6.25m (ETW 6.14m) in hole
UDH1416 (Including 355 g/t Au(1)over 0.35m)
-- Dimensions of the high-grade Eagle Fault, extended 100 m by drilling, is
currently 600 m along strike and spans approximately 290 m of vertical
height, with Eagle open for continued expansion down-plunge
-- Drilling of the East Dipping Fault continues to intersect significant
widths, up to 13.50 m of high-grade mineralization and included two
major intercepts with 645 g/t Au(1)over 3.50 m (ETW 3.41m) in hole
UDH1456 (Including 7,368 g/t Au(1) over 0.30m) and 45.47 g/t Au(1)over
14.95m (ETW 13.50m) in hole UDH1408 (Including 1,321 g/t Au(1)over
0.35m)
-- Lower Phoenix Fault returned a high-grade intercept of 16.53 g/t Au over
4.50m (ETW 3.99m) in hole UDH1444
-- Lower Phoenix Footwall Fault returned a significant intercept 5.94 g/t
Au over 7.40m (ETW 6.48m) in hole UDH1366
-- Kestrel structure returned a significant intercept of 9.77 g/t Au over
4.55m (ETW 3.95) in hole UDH1406
1. Visible gold present in drill intercept, ETW - Estimated True Width, All
drill results are presented in Table 1
Mr. Douglas Forster, President and Chief Executive Officer, Newmarket Gold commented: "Drilling with four drill rigs at our Fosterville Gold Mine continues to intersect record high-grade visible gold intercepts outside of known Mineral Resources at our Eagle Fault discovery and other structures in the Lower Phoenix System. Drilling has also extended the Eagle Fault Zone an additional 100 m along strike to a total length of 600 m with visible gold-bearing Eagle mineralization remaining open for expansion down-plunge. The latest drill results are very encouraging as the Eagle Fault, and other key structures containing high-grade mineralization are proximal to infrastructure where current mining continues to extract ore that has contributed to higher year-over-year mill grades at Fosterville. We are pleased with the performance of our drill programs to date as results have a strong potential to add to our Mineral Reserves and Resources. We remain on track to establish a first resource for Eagle as of year-end December 31, 2015, to be released by the end of Q1 2016."
Fosterville Drilling Program
Since the Newmarket October 29, 2015 News Release of drill results, the underground drilling program at Fosterville using four diamond drill rigs, has continued to focus on definition and exploration of multiple gold targets including the Phoenix, Lower Phoenix, Lower Phoenix Footwall (LPFW), East Dipping, Kestrel and Eagle Faults. Reported are the drill results outside of the December 31, 2015 Measured and Indicated Mineral Resources from 60 holes totaling 13,076m at a cost of US$1.6 million. Mining production continues on the upper plunge areas of these targeted structures including the high-grade Eagle Fault and East Dipping Faults with reconciliation and metallurgical recoveries continuing to perform well.
All drill assay intercepts are provided in Table 1 and drill collars in Table 2.
Eagle Fault and East Dipping Faults
Results from 24 drill holes have been returned from holes targeting the down-plunge extent of the Eagle Fault between 6500mN and 6875mN (Figure 1 and 2). Significant intercepts of 161 g/t Au(1) over 7.35m (ETW 4.94m) in hole UDH1481 and 32.02 g/t Au(1) over 6.25m (ETW 6.14m) in hole UDH1416 continue to reaffirm the high-grade tenor of the Eagle Fault mineralization. On-going definition drilling continues to improve confidence in the continuity on the Eagle Fault mineralization which has now been defined over an extensive strike length of approximately 600 m and vertical extents of 290m. The structure continues to provide significant opportunity for Mineral Resource and Reserve growth along strike and has the advantage of being close to existing Mineral Reserves within the Lower Phoenix zone. The Eagle zone is untested and open at depth below the 4060mRL.
In addition, 19 drill hole intercepts between the 6500mN and 7150mN have further defined East Dipping mineralized faults, footwall to the Lower Phoenix Fault (Figure 1). The East Dipping Faults continue to return significant high-grade intercepts including 645 g/t Au(1) over 3.5m (ETW 3.41m) in hole UDH1456 and 45.47 g/t Au over 14.95m (ETW 13.50m) in hole UDH1408. East Dipping Fault mineralization continues to provide encouraging resource growth potential with significant widths (greater than 8m) of high-grade gold mineralization defined between approx. 6625mN and 6700mN on this structure.
Drill coverage into the Eagle and East Dipping Faults over 2015, has provided sufficient confidence in structure and grade continuity down-plunge to approximately 6600mN that it is anticipated Indicated Mineral Resource growth can be realized to this extent. Newmarket is optimistic of Mineral Resource and Reserve growth on the Eagle and East Dipping structures in upcoming evaluations scheduled for completion at the end of Q1 2016.
Drilling into 2016 will continue to focus on the down-plunge extent of known Eagle and East Dipping fault mineralization to increase confidence southwards to 6550mN as well as test beyond the down-plunge extents of known mineralization from the Central Decline drill platform. The Central Decline drill platform is planned to continue to extend southwards during Q1 2016 to provide drilling platforms to support targeting of these highly prospective easterly dipping structures.
Lower Phoenix and LPFW
Several of the 19 holes drilled into the Lower Phoenix Fault over the reporting period returned high grade results including 16.53 g/t Au over 4.50m (ETW 3.99m) in hole UDH1444 and 6.68 g/t Au over 5.40m (ETW 4.50m) in hole UDH1433 (Figure 1A and 2). Supported by significant intercepts returned for UDH1431, 1432, 1434, 1435 and 1436, these holes have strong potential to influence Mineral Reserve growth on the Lower Phoenix Fault to the north of vertically accessed mining levels. Additionally, strong results returned, below existing Mineral Reserves, from holes UDH1496 and UDH1415 continue to provide Mineral Resource and Reserve growth opportunities down plunge on the structure.
Further significant gold mineralization associated with Lower Phoenix Footwall westerly dipping faults adjacent to the Lower Phoenix Fault is demonstrated by drill hole intercept 5.94 g/t Au(1) over 7.40m (ETW 6.48m) in hole UDH1366 (Figure 1A). This intercept continues to build confidence in the continuity of strongly mineralized west dipping structures associated with the footwall to the Lower Phoenix Gold System.
Phoenix
Seven drill holes have targeted the down-dip and down-plunge extensions of the Phoenix Fault during the reporting period. The most significant intercept of 7.65 g/t Au over 4.60m (ETW 4.13m) in hole UDH1439 is positioned appreciably down dip of the projected plunge of Phoenix mineralization (Figure 1).
Kestrel
Drilling through the Kestrel target area has further confirmed continuity of mineralization associated with the western limb of the syncline and syncline axial plane. The most significant intercept for the reporting period of 9.77 g/t Au over 4.55m (ETW 3.95m) in hole UDH1406, was through the western limb of the syncline and reaffirms continuity of mineralization along this structure over a 450m strike length south to approximately 6550mN (Figure 1). The defined mineralization is positioned directly below the December 2014 Central Mineral Reserve, with upper sections accessible from the Central Decline and lower sections where it converges with the syncline axis, from Phoenix developments.
Syncline axial planar mineralization has now been defined over a 550m strike length to approximately 6650mN and recent drill intercepts including 6.06g/t Au over 11.85m (ETW 3.38m) in hole UDH1423, continue to demonstrate the potential of this zone to provide mineral resource amenable to mining (Figure 1). The extension of hole UDH1423 also intersected a west dipping structure below the axial planar mineralization. Widely spaced drilling has defined this westerly dipping mineralized trend over a strike length of 375m from 6475mN to 6850mN.
Mineralization intersected on the 6375mN section in hole UDH1439, is thought to be an extension of the Kestrel mineralized system and the untested area between this drill hole and 6650mN provides a prospective zone for future resource targeting, which forms part of the 2016 drill plan (Figure 1).
A location plan (Figure 3) is provided to show the line of projection used for Figures 1, 1A and 2.
To view a PDF of the tables and figures as referenced in this press release please go to the following link: http://file.marketwire.com/release/1038959-FT.pdf.
Qualified Person
Mark Edwards, MAusIMM (CP), MAIG, General Manager, Exploration, Newmarket Gold, is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release. QA/QC information is provided at the bottom of Table 1.
ON BEHALF OF THE BOARD
Douglas Forster, M.Sc., P.Geo., President & Chief Executive Officer
About Newmarket Gold Inc.
Newmarket Gold is a Canadian-listed gold mining and exploration company with three 100% owned operating mines across Australia. The Company is focused on creating substantial shareholder value by maintaining a strong foundation of quality gold production, over 200,000 ounces annually, generating strong operational cash flow and maintaining a large resource base as it executes a clearly defined gold asset consolidation strategy. The Company is focused on sustainable operating performance, a disciplined approach to growth, and building gold reserves and resources while maintaining the high standards that the Newmarket Gold core values represent.
Cautionary Note Regarding Forward Looking Information
Certain information set forth in this news release contains "forward-looking statements", and "forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company's expectations about its business and operations, and are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "will", "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance or outcomes and undue reliance should not be placed on them. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, 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. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are included in this press release or incorporated by reference herein, except in accordance with applicable securities laws.
Contacts:
Newmarket Gold, Inc.
Laura Lepore
Director, Investor Relations
416.847.1847
llepore@newmarketgoldinc.com
www.newmarketgoldinc.com
Source: Newmarket Gold Inc.
Newmarket Gold Commences Exploration Drilling at the Esmeralda Gold Deposit, and Advances the Maud Creek Gold Project PEA Study
12/1/15, 6:30 AM
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 12/01/15 -- Newmarket Gold ("Newmarket" or the "Company") (TSX: NMI)(OTCQX: NMKTF) today announced it continues to execute on its internal growth exploration programs, as drilling has commenced on the 100% owned Esmeralda Gold Deposit, a strategic growth project located in the Northern Territory only seven kilometers southeast of Newmarket's 100% owned Union Reefs processing facility. Also in the Northern Territory, the previously announced Preliminary Economic Assessment ("PEA") study for the 100% owned Maud Creek Gold Project is well underway with an initial report expected to be published in Q1, 2016 by SRK Consulting (Australasia) Pty Ltd.
Key Highlights
-- Drilling on the Esmeralda Gold Deposit has commenced with one surface
reverse circulation ("RC") and one diamond drill rig. The drill program
consists of approximately 80 RC drill holes for 5,200 metres (m) and 7
diamond holes for 540 m of drilling (Figure 3) at total cost of
US$425,000. Diamond drilling will provide additional geotechnical
information for establishing open pit design criteria. The Esmeralda
Gold Deposit hosts an NI 43-101 Inferred Mineral Resource of 1.06 Mt
grading 2.06 g/t Au at a 0.50 g/t Au cutoff for 70,300 ounces gold and
has open pit, oxide mining potential (see Newmarket news release dated
July 24, 2013).
-- Work is continuing on the development of a Notice of Intent (NoI) for
open pit mining of the Esmeralda Deposit. This is the first step in
gaining approval for a mining operation from the Department of Mines and
Energy (DME).
-- SRK Consulting (Australasia) Pty Ltd, has continued the development of
the PEA for the Maud Creek Gold Project, with this study to be completed
in Q1, 2016.
Mr. Douglas Forster, President and Chief Executive Officer, Newmarket Gold commented: "Our growth exploration programs are focused on high priority targets in our project pipeline that can have a significant positive impact on our near-term operations and have potential for high-margin resource ounces. The Esmeralda and Maud Creek deposits are 100% owned gold projects that could contribute significantly to organic production growth at our the Northern Territory operations given their proximity to our Union Reefs mill which has approximately 1.2 million tonnes excess milling capacity."
For more information on the location of the deposits please refer to Figure 1.
Esmeralda Drilling Program
The Esmeralda growth project includes two deposits, which are ranked highly due to the proximity to the Union Reefs processing facility and the presence of oxidized Mineral Resources potentially available for open pit mining. The deposit could possibly contribute near-term mill feed to the processing schedule with ore mined from the Cosmo Underground mine (Figure 2).
The Esmeralda Gold Deposit is located approximately 7 kilometres to the southeast of the Union Reefs processing facility (Figure 2) and has a previously reported Inferred Mineral Resource of 1.06 Mt @ 2.06 g/t Au at a 0.50 g/t Au cut-off for 70,300 ounces (see Newmarket news release dated July 24, 2013). This Mineral Resource is based on approximately 11,720 m of drilling in 156 drill holes completed between 1992 and 1999. The unmined deposit, consisting of two distinct mineralized zones termed Esmeralda A (eastern line) and Esmeralda B (western line), has open pit oxide mining potential. The current diamond drilling program is expected to assist with the geotechnical analysis of the deposit and to provide material for additional metallurgical test work. The current RC drill program consisting of 80 drill holes over 5,200 m has the potential to increase the size of the Inferred Mineral Resource and increase the confidence level for parts of the resource (Figure 3).
The gold mineralization in Esmeralda A occurs in a series of NNW-SSE striking, bedding plane parallel quartz-tourmaline veins associated with pyrite-sericite alteration in a sequence of alternating slates and greywackes. These veins are thought to have formed during an episode of dextral strike-slip movement between a series of right-lateral step-overs.
The gold mineralization at Esmeralda B also occurs in a series of NNW-SSE striking, bedding-plane parallel quartz veins in an alternating slate-greywacke sequence. Gold mineralization also occurs in NE-SW striking sinistral cross fractures and in the culminations of parasitic folds as pyrite-sericite alteration.
Maud Creek Preliminary Economic Assessment ("PEA")
The Maud Creek Gold Deposit is located 108 km south of the Union Reefs processing facility and 20.7km to the east of the regional township of Katherine (Figure 4). The shear zone hosted gold deposit was discovered in 1987, explored by several companies and mined to a shallow depth for oxide gold in the period 1999-2000. The deposit has an Indicated Mineral Resource of 7.7 Mt grading 3.50g/t Au at a 1.00 g/t Au cut-off for 871,000 ounces and an Inferred Mineral Resource of 4.2 Mt @ 2.50 g/t Au at a 1.00 g/t Au cutoff for 343,600 ounces (see Newmarket press release dated 24 July 2013).
SRK Consulting (Australasia) Pty Ltd ("SRK") is progressing a study of the Maud Creek Gold Project towards delivery of a Canadian National Instrument (NI 43-101) compliant Technical Report to support a PEA on the Project. Since commencing in April 2015, the study has focused on review of the geological and Resource models and confirmation of the geotechnical design parameters. There has been no material changes in these aspects of the project. Specification and design of the metallurgical process flowsheet and plant design is progressing based on an estimate of the potential mining inventory from the preliminary mine design work.
The study is progressing to completion of the mining schedules and definition of infrastructure requirements in-line with the environmental and social considerations to underpin the operating and capital cost estimates. The SRK technical report on the Maud Creek gold project is due to be completed in Q1, 2016.
Qualified Person
Mark Edwards, MAusIMM (CP), MAIG, General Manager, Exploration, Newmarket Gold, is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.
ON BEHALF OF THE BOARD
Douglas Forster, M.Sc., P.Geo., President & Chief Executive Officer
About Newmarket Gold Inc.
Newmarket Gold is a Canadian-listed gold mining and exploration company with three 100% owned operating mines across Australia. The Company is focused on creating substantial shareholder value by maintaining a strong foundation of quality gold production, over 200,000 ounces annually, generating free cash flow and maintaining a large resource base as it executes a clearly defined gold asset consolidation strategy. The Company is focused on sustainable operating performance, a disciplined approach to growth, and building gold reserves and resources while maintaining the high standards that the Newmarket Gold core values represent.
Cautionary Note Regarding Forward Looking Information
Certain information set forth in this news release contains "forward-looking statements", and "forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company's expectations about its business and operations, and are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "will", "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance or outcomes and undue reliance should not be placed on them. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, 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. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are included in this press release or incorporated by reference herein, except in accordance with applicable securities laws.
To view the figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/151201_NMI-FIGURES_1-4.pdf
Contacts:
Newmarket Gold Inc.
Laura Lepore
Director, Investor Relations
416.847.1847
llepore@newmarketgoldinc.com
www.newmarketgoldinc.com
Source: Newmarket Gold Inc.
2015 Third Quarter ("Q3 2015") and Nine Months ("9M 2015") Highlights
(All figures are in United States ("U.S.") dollars, unless stated otherwise)
Strong Consolidated Production: Q3 2015 represented the ninth consecutive quarter of production over 53,000 ounces. Gold production of 53,817 ounces, included record production of 32,793 ounces from the Company's flagship asset, Fosterville Gold Mine. The Company experienced record production in the first 9M 2015 of 169,491 ounces, up 3.7% year-over-year.
Decreasing Costs: Operating cash costs decreased 20.4% to $715 per ounce sold in Q3 2015 from Q3 2014. All-in sustaining costs ("AISC") decreased 18.0% to $1,011 per ounce sold in Q3 2015 from Q3 2014. For the first 9M 2015, operating cash costs averaged $693 per ounce sold, while AISC averaged $984 per ounce sold.
Reaffirming 2015 Production Guidance, Lowering 2015 Cost Outlook: Top end of our FY 2015 production guidance of approximately 220,000 reaffirmed following record quarterly production from Fosterville. Outlook for 2015 operating cash costs has been lowered to $700 - $750 per ounce (prior $780 - $860) and AISC lowered to $970 - $1,020 per ounce (prior $1,020 - $1,100) reflecting an increasing grade and recovery profile, a focus on Company wide cost reductions, and the impact of the weakened Australian dollar.
Operating Cash Flows: 9M 2015 operating cash flow of $65.9 million increased 34.8% year-over-year. Q3 2015 operating cash flow of $11.3 million declined 37.8% from Q3 2014 due to one-time transaction costs associated with the Newmarket Gold and Crocodile Gold amalgamation (the "Transaction"), increased spending on growth projects, and lower gold sales in a continued depressed gold price environment.
Mine Site Discoveries Drive Growth Initiatives: Increased investment in growth exploration programs, with $7.2 million spent to date including $3.8 million in Q3 2015, has resulted in mine site discoveries at Fosterville, Cosmo and Stawell. Investment in growth exploration programs are focused on targets in the project pipeline that can have a significant positive impact on near-term operations.
Cash and Working Capital: Cash balance of $37.2 million, reflecting the impact of one-time transaction cash costs of $3.3 million associated with the Transaction, increased growth exploration spending in Q3 2015 and the translation impact of a weakening Australian dollar. Working capital was $22.6 million, reflecting aforementioned transaction costs, up significantly from December 31, 2014 working capital of $12.6 million.
Net Income Impacted by One-Time Transaction Costs: 9M 2015 net income was $17.5 million or $0.14 per share, which included year-to-date one-time transaction costs of $16.7 million, or $0.14 per share. Excluding the one-time transaction costs, 9M 2015 net income was $34.2 million, or $0.28 per share. During the quarter, one-time transaction costs of $15.1 million (of which $13.4 million are non-cash costs) contributed to a Q3 2015 net loss of $10.3 million or $0.08 per share compared to Q3 2014 net income of $8.6 million or $0.07 per share. Transaction costs accounted for a $0.11 loss per share during Q3 2015. Excluding one-time transaction costs, Q3 2015 net income was at $4.8 million or $0.04 per share.
Read more: http://www.nasdaq.com/press-release/newmarket-gold-delivers-record-production-of-169491-oz-9m-2015-reaffirms-2015-topend-production-20151105-00263#ixzz3qkmKFCi0
Sure is lonely here on the 4God board. I guess I'm the only one dumb enough to play NewMarket.
Finally heard from Chip Anderson, stockcharts added NMKTF - not much data, so still need NMI.TO to chart it, but it's a start.
Newmarket mentioned in Seeking Alpha article by Martin Katusa:
http://seekingalpha.com/article/3624116-marin-katusa-follow-the-good-guys-in-mining
NEWMARKET GOLD EXPLORATION SUCCESS AT FOSTERVILLE DRIVES SURFACE AND UNDERGROUND DRILL PROGRAMS; ADDITIONAL HIGH-GRADE GOLD INTERCEPTS AT EAGLE FAULT
October 29, 2015
VANCOUVER, BRITISH COLUMBIA—(Marketwired - Oct. 29, 2015) - Newmarket Gold (“Newmarket” or the “Company”)(TSX:NMI) (OTCQX:NMKTF) is pleased to announce positive drill results from an additional 27 drill holes focused on further defining near mine underground gold targets on the Phoenix, Lower Phoenix, Lower Phoenix Footwall (LPFW), East Dipping, Kestrel and newly identified Eagle Faults at Fosterville Gold Mine, Victoria. Drill results include high-grade gold intercepts containing visible gold, suggesting there is a strong potential to increase Fosterville’s Mineral Resources and Reserves.
Newmarket also confirmed the launch of three new growth exploration programs at Lower Phoenix South (6200mN), and Lower Phoenix North (7950mN), and the development of the Harrier Exploration Drill Drive. The total investment in these projects is USD$2.6 million and includes approximately 5,860m of surface based diamond drilling targeted on the northern and southern extensions of the Lower Phoenix system and 224m of underground development. The first phase of the Harrier Exploration Drill Drive will provide exploration drill platforms to support 2016 exploration drilling targeting the down-plunge extensions of the Phoenix gold system. The company has also committed to installing a gravity recovery gold circuit at the Fosterville processing facility to optimize gold recovery and provide processing options for different ore types at a total cost of US$0.4 million.
Highlights and Key Drill Intercepts at Fosterville Gold Mine
(Outside of Indicated Mineral Resources Reported December 2014)
Near mine underground exploration drilling continues to return high-grade visible gold drill intercepts associated with the Eagle Fault including 100 g/t Au(1) over 2.8 m (ETW 2.64 m) in hole UDH1390 (Including 266 g/t Au(1) over 0.6 m) and Lower Phoenix Footwall 159 g/t Au(1) over 7.55m (ETW 4.09m) in hole UDH1365 (Including 1,290 g/t Au(1) over 0.85m)
Surface based diamond drilling has begun on the Lower Phoenix South gold system (6200mN), targeting the down-plunge extension of the Lower Phoenix structure approximately 200m south of delineated Mineral Resources.
Surface based diamond drilling has begun on the Lower Phoenix North gold system (7950mN), targeting the up-plunge extension of the Lower Phoenix Fault approximately 230m north of defined Mineral Resources.
An underground drill drive development from the Harrier Decline has been initiated in order to support 2016 drilling of the down-plunge extension of the Phoenix system approximately 1000 m south of current Mineral Reserves.
Fosterville processing facility to install a gravity recovery gold circuit by end of Q1 2016 for a total cost of US$0.4 million. Once complete, Fosterville expects to benefit from an increase in overall gold recoveries and lower treatment costs.
1. Visible gold present in drill intercept, ETW - Estimated True Width, All drill results are presented in Table 1
Mr. Douglas Forster, President and Chief Executive Officer, Newmarket Gold commented: “In the first half of 2015, exploration drilling completed at Fosterville resulted in the discovery of the Eagle Fault in the Lower Phoenix gold system, a new zone of significant visible gold mineralization proximal to current mine infrastructure. Recent drilling targeting the Eagle Fault, and other structures, continues to intersect high-grade gold mineralization containing visible gold with mining currently extracting ore from these structures which contributed to record mill grades of 6.4 g/t Au in Q3, 2015. Since its discovery, we have seen the Eagle Fault continue to expand which is encouraging as it has strong potential to add to our mineral reserves and resources.”
Mr. Forster continued, “Based on the success of our exploration programs at Fosterville we have initiated several additional growth projects from our exploration pipeline including the Lower Phoenix South and Lower Phoenix North surface drill programs and the Harrier drill drive development. We have also commenced the installation of a gravity recovery gold circuit at Fosterville’s processing facility which will enable the recovery of coarse visible gold. We expect to see improvements in gold recovery and costs once the installation of the gravity circuit is completed in the first quarter of 2016. By initiating these new drill programs and drill drive developments at Fosterville we continue to be focused on our objective of growing our reserves and resources to further extend the mine life at Fosterville and realize the full potential of our flagship asset. We look forward to providing an update to our Mineral Reserves and Mineral Resources in Q1 2016.”
Fosterville Drilling Program
Since the September 14, 2015 drill results update News Release, the underground drilling program at Fosterville, using four diamond drill rigs, has continued to focus on definition and exploration of multiple targets including the Phoenix, Lower Phoenix, Lower Phoenix Footwall (LPFW), East Dipping, Kestrel and newly identified Eagle Faults. Reported are the results outside of Measured and Indicated Resources from 27 holes totaling 5509m at a cost of US$0.70 million. Mining production continues on the upper plunge areas of these targeted structures including the high-grade Eagle Fault with reconciliation and metallurgical recoveries continuing to perform well.
All drill assay intercepts are provided in Table 1 and drill collars in Table 2.
Eagle Fault and East Dipping Faults
Since the Newmarket News Release dated September 14, 2015, results from a total of 12 drill holes have been returned from holes targeting the down-plunge extent of the Eagle Fault between 6600mN and 6850mN(Figure 1). Significant intercepts of 100 g/t Au(1) over 2.8m (ETW 2.64m) in hole UDH1390 and 9.01 g/t Au over 4.4m (ETW 3.98m) in hole UDH1375 continue to reaffirm the high-grade tenor of the Eagle Fault mineralization. On-going definition drilling continues to improve confidence in the continuity on the Eagle Fault mineralization which has been defined over a strike length of approximately 500 m. The structure continues to provide significant opportunity for Mineral Resource and Reserve growth laterally adjacent to existing Mineral Reserves within the Lower Phoenix zone.
In addition, 8 drill hole intercepts from 6 holes between the 6650mN and 6850mN have further defined East Dipping mineralized faults, footwall to the Lower Phoenix Fault (Figure 1). The East Dipping Faults continue to return significant high-grade intercepts including 38.5 g/t Au(1) over 1.1m (ETW 0.96m) in hole UDH1386 and 15.84 g/t Au over 5.2m (ETW 4.86m) in hole UDH1374. East Dipping Fault mineralization continues to provide encouraging resource growth potential with continuity of east dipping bedding parallel mineralization also beginning to develop hanging wall to the Eagle Fault.
Drilling for the remainder of 2015 will continue to focus on the down-plunge extent of known Eagle and East Dipping fault mineralization to increase confidence southwards to 6550mN as well as test beyond the down-plunge extents of known mineralization from the Central Decline drill platform. The Central Decline drill platform is planned to continue to extend southwards during Q4 2015 to provide drilling platforms to support targeting of these highly prospective easterly dipping structures.
Lower Phoenix, LPFW and Phoenix
Further significant gold mineralization associated with Lower Phoenix Footwall westerly dipping faults adjacent to the Lower Phoenix Fault has been realized through a drill hole intercept of 159 g/t Au(1) over 7.55m (ETW 4.09m) in hole UDH1365 (Figure 1). This intercept continues to build confidence in the continuity of strongly mineralized west dipping structures associated with the footwall to Lower Phoenix gold system and is anticipated to contribute to Indicated Mineral Resource growth southwards of 6750mN.
Two drill holes (UDH1365 and UDH1391) have targeted the down-plunge extension of the westerly dipping Lower Phoenix Fault between 6675mN and 6775mN (Figure 1) and confirm the continuation of this structure. The down-plunge definition of the Lower Phoenix Fault southwards to the 6550mN remains a key target for Q4 2015 drilling. In addition, down-dip drill targeting of the Lower Phoenix Fault from footwall drill positions is scheduled to continue for Q4 2015 between 7050mN and 7400mN and will test the northern resource potential above 4200mRL.
One drill hole (UDH1361) has targeted the down-dip extent of the Phoenix M&I Mineral Resource (Figure 1). Drilling on this structure for the remainder of 2015 will primarily be undertaken from the Central Decline as it advances southwards, to test down-plunge continuity of gold mineralization (to 6400mN) between the existing Mineral Reserve and UDE113A (3.4 g/t Au over 3.4 m (ETW 3.3m) as reported in the News Release dated July 27th 2015.
Kestrel
Progressive drilling targeting the area below the westerly dipping Phoenix structure and above the sub-vertical syncline axial planar-related mineralization of Kestrel (Figure 4) has demonstrated continuity of significant mineralization between them. Underground mapping in the upper sections of this zone has indicated that there is gold mineralization that occupies both east dipping and west dipping structures on the western limb of the syncline. The most significant drill intercept in this zone during this reporting period is 7.27 g/t Au over 6.10m (ETW 6.04m) from hole UDH1372 and is supported by surrounding intercepts of significant width and grade including 4.96 g/t Au over 5.15m (ETW 4.39m) in hole UDH1390, 4.6 g/t Au over 5.20m (ETW 5.11m) in hole UDH1395 and 6.44 g/t Au over 3.7m (ETW 3.62m) in hole UDH1361.
Lower Phoenix South (6200mN) Surface Drill Program
Drilling activities commenced from surface in August 2015 (Figure 2) as part of a three month drill program targeting the down-plunge extensions of the Lower Phoenix South gold system (Figure 3). The program comprises one parent hole and three daughter holes totaling 3,286m at a cost of US$0.77 million. Lower Phoenix South (6200mN) target drill intercept positions lie approximately 200m south of existing Mineral Resources and 370m south of existing Mineral Reserves. The program is expected to be completed in late 2015. Previous drilling to the north on 6400mN demonstrates that the Lower Phoenix and associated footwall structures are mineralized with the peak intercept returning 4.8 g/t Au over 5.30m in hole SPD613C (Figure 3). There is no drilling south of 6400mN that tests the Lower Phoenix structure. Success from the current program would provide an increased understanding in the continuity and position of mineralization down-plunge and provide guidance of future resource definition drilling and mine development plans.
The drill program is also designed to test the geological setting below the Lower Phoenix Fault to increase the company’s knowledge in relation to the previously reported 6050mN drill intercept of 4.4 g/t Au over 8.0m in hole SPD567B (Figure 3). The 6050mN result highlights the down-plunge potential of the Lower Phoenix system and by drilling the 6200mN section it will allow the Company to extrapolate the geological framework southwards to guide future exploration drill targeting.
Lower Phoenix North (7950mN) Surface Drill Program
The Lower Phoenix North (7950mN) surface drill program is targeting the up-plunge extension of the Lower Phoenix gold system (Figures 2 & 3). The program, which commenced in September 2015, comprises four holes for a total of 2,580m at a cost of US$0.57 million. The program is expected to be completed in late 2015. Drilling presently exists on northings 8200mN and 7700mN and structural-stratigraphic interpretations of these drill sections indicate that there is potential continuity of mineralization between them. Gold mineralization present on 8200mN includes 4.7 g/t Au over 7.9m in hole UDE090 and 6.5 g/t Au over 6.0m in hole UDE091 and on the 7700mN section includes 3.2 g/t Au over 6.5m in hole SPD609A and 2.2 g/t Au over 5.3m in hole SPD609. The Lower Phoenix North (7950mN) drilling will test for mineralisation approximately 250m north of Mineral Reserves between the existing 7700mN and 8200mN drill sections (Figure 3).
Harrier Drill Drive Development
Development of a 645m drill drive west from the Harrier Decline is underway and will establish a drill platform to allow testing of the Fosterville mineralization corridor approximately 1000m down-plunge southwards of current Mineral Reserves (Figures 2 and 3). Roughly 224m of this development is expected to be completed in late 2015 at a cost of approximately US$1.2 million, and the remaining 421m of development is expected to be constructed during the first half of 2016 allowing for commencement of exploration drilling in the second half of 2016. This development platform provides future opportunity to extend mine infrastructure northward to explore resource potential from underground positions towards the current mining areas of Phoenix and Lower Phoenix.
Gravity Recoverable Gold Circuit Installation
Primary gold mineralization at Fosterville generally occurs as finely disseminated particles within sulphides. Gold is successfully recovered using bacteria oxidation (BIOX®) during ore processing (Figure 5) with record gold recoveries of 89.7% being achieved in Q3 2015.
However, several newly discovered geological structures at depth at Fosterville, such as Eagle, East Dipping and LPFW Faults, have additional gold in the form of coarse visible gold that frequently occurs with sulphide mineralization. The company has investigated the potential impacts that gravity recoverable gold may have through the grinding and flotation circuit. Testing indicates that the coarse visible gold is currently being recovered in the flotation concentrates (Figure 6). Through a series of plant trials and mineralogy studies, locations for a gravity circuit were evaluated.
It was found that the benefits to the installation of a gravity circuit include:
Potential improvement to overall plant recoveries due to the absence of leach penalties, or risk of gold loss to flotation tailings.
Potential economic upside to recovering gravity recoverable gold from the grinding circuit and direct smelt.
The company has now committed to installing a 10 tonnes per hour gravity circuit (Knelson Concentrator) within the secondary (‘Regrind’) grinding circuit (Figure 5) at a cost of US$0.4 million with the installation expected to commence in early 2016 and be operational by the end of Q2 2016.
Qualified Person
Mark Edwards, MAusIMM (CP), MAIG, General Manager, Exploration, Newmarket Gold, is a “qualified person” as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.
QA/QC information is provided at the bottom of Table 1.
ON BEHALF OF THE BOARD
Douglas Forster, M.Sc., P.Geo., President & Chief Executive Officer
About Newmarket Gold Inc.
Newmarket Gold is a Canadian-listed gold mining and exploration company with three 100% owned operating mines across Australia. The Company is focused on creating substantial shareholder value by maintaining a strong foundation of quality gold production, over 200,000 ounces annually, generating strong operational cash flow and maintaining a large resource base as it executes a clearly defined gold asset consolidation strategy. The Company is focused on sustainable operating performance, a disciplined approach to growth, and building gold reserves and resources while maintaining the high standards that the Newmarket Gold core values represent.
Cautionary Note Regarding Forward Looking Information
Certain information set forth in this news release contains “forward-looking statements”, and “forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company’s expectations about its business and operations, and are based on the Company’s current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as “will”, “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These statements are not guarantees of future performance or outcomes and undue reliance should not be placed on them. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, 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. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are included in this press release or incorporated by reference herein, except in accordance with applicable securities laws.
To view the figures and tables associated with this release, please visit the following link: http://media3.marketwire.com/docs/1030426_FiguresTables.pdf
Newmarket Gold, Inc.
Laura Lepore
Director, Investor Relations
416.847.1847
llepore@newmarketgoldinc.com
www.newmarketgoldinc.com
Newmarket Gold Produces 169,491 Ounces in First Nine Months of 2015; Fosterville Achieves Record Quarterly Production
https://www.morningstar.com/news/canada-market-wire/MWR_1028353001_CAN/newmarket-gold-produces-169491-ounces-in-first-nine-months-of-2015-fosterville-achieves-record-quarterly-production.html
Have not heard from stockcharts - could other followers here please request NMKTF - they move more quickly when they get multiple requests. Thnx, 4God
Newmarket Gold has a dream team comprised of the best in the business. Here are just some of the names involved:
Doug Forster: A man involved with numerous successes including Terrane Metals which was acquired by Thompson Creek in 2010 for $750 million and Potash One which was acquired by K+S in 2011 for $434 million.
Lukas Lundin: A billionaire whose sold billions of dollars worth of assets to major gold producers, including the $7.1 billion sale of Red Back Mining in 2010.
Randall Oliphant: Current chairman of the World Gold Council, past President and Chief Executive Officer of Barrick Gold
Raymond Threlkeld: A man that has been responsible for putting more than 60 million ounces of gold into production
Blayne Johnson: A man involved in the acquisitions and buyouts of over a billion dollars, and helped his firm transact over $5 billion of equity financings
Doug Hurst: A founding executive of International Royalty Corporation from 2003 to 2006 and a director of the company until 2010 when the company was purchased by Royal Gold for $700 million.
Together, the principals of Newmarket Gold Inc. (Newmarket) have founded, managed, and sold mining companies with a combined value of nearly $30 billion!
I have requested that stockcharts add the symbol. For now you can get a chart @ morningstar.
http://quotes.morningstar.com/chart/stock/chart.action?t=NMKTF®ion=USA&culture=en_US
Trades under the ticker NMKTF here in the US. OTC:QX market.
NEWMARKET GOLD REPORTS STRONG SECOND QUARTER RESULTS; RECORD LOW OPERATING CASH COSTS OF $681 PER OZ AND RECORD FIRST-HALF PRODUCTION OF 115,674 OZ
July 30, 2015
VANCOUVER, BRITISH COLUMBIA—(Marketwired - July 30, 2015) - Newmarket Gold (“Newmarket” or the “Company”) (TSX:NMI) is pleased to announce financial results for the three and six months ended June 30, 2015. Full Financial Statements and Management Discussion & Analysis documents can be found at www.sedar.com and the Company’s website, www.newmarketgoldinc.com.
Second Quarter Highlights (“Q2/15”) (All figures are in United States (“U.S.”) dollars, unless stated otherwise)
Consolidated production of 55,998 ounces, up 3.7% vs. Q2/14, and eighth consecutive quarter of gold production above 53,000 ounces. H1 2015 consolidated production was a record 115,674 ounces.
Record low operating cash costs of $681 per ounce sold, a 29.4% decrease vs. Q2/14, below full-year 2015 guidance of $780-$860 per ounce sold.
All-in sustaining cash costs (“AISC”) per ounce sold of $1,037, a 21.2% decrease vs. Q2/14, with an average realized gold price of $1,196 in Q2/15.
Revenue of $66.0 million based on 55,154 ounces sold.
Increased operating cash flow to $27.1 million, up 4.9% from Q2/14.
Net income of $12.1 million, or $0.10 earnings per share*, vs. $3.9 million, or $0.01 earnings per share* in Q2/14. H1 2015 net income of $27.8 million, or $0.24 earnings per share.*
Cash and gold bullion balance of $38.8 million and working capital of $25.1 million.
Completed merger between Newmarket Gold and Crocodile Gold establishing a new, sustainable 200,000 plus ounce gold producer. An exceptional operations team combined with a senior management team and board of directors, with a proven track record of superior value creation and ability to leverage deep capital markets and mining sector relationships, will continue to execute on a gold asset consolidation strategy creating significant shareholder value.
*Income per share, basic and diluted, is presented after giving effect to the share exchange ratio following the completion of the merger between Newmarket Gold and Crocodile Gold. Refer to note 2 of the interim financial statements dated July 30, 2015.
Douglas Forster, President & CEO, Newmarket Gold commented: “During the second quarter we announced a strategic combination between Newmarket and Crocodile Gold. The merger closed successfully on July 10, 2015 establishing a new 200,000 plus ounce per year gold producer with an exceptional operations and senior management team and board of directors. With our newly combined team and proven track record of operational excellence and superior value creation, we continue to focus on sustaining current gold production levels and maintaining cost profiles. Consolidated gold production in the second quarter was 55,998 ounces, up 3.7% year-over-year, representing two years of quarterly production above 53,000 ounces. In the first six months of 2015, we delivered a record 115,674 ounces of consolidated gold production, positioning us well to meet the top end of our full-year 2015 production outlook of 205,000 to 220,000 ounces. Despite a challenging gold price environment, we achieved solid revenue and continued to meet our cost reduction and productivity targets resulting in record low operating cash costs of $681 per ounce, increased profitability and positive free cash flow. We remain confident in our ability to deliver on our 2015 cash cost and AISC guidance of $780 to $860 per ounce and $1,020 to $1,100 per ounce respectively.
“We entered H2 2015 with a solid cash and gold bullion balance of $38.8 million and an increased working capital level of $25.1 million. The positive free cash flow generated during the quarter enabled us to turn on several growth exploration programs across the sites that has resulted in significant discoveries and many resource building opportunities. At Fosterville, we have intersected extremely high-grade gold mineralization containing visible gold at the Eagle Fault discovery in the Lower Phoenix System. Drill results from the Eagle Fault discovery include 386 g/t gold over 9.15 metres (estimate true width 3.35 metres) and 268 g/t gold over 7.85 metres (estimated true width 2.77 metres). These drill results represent the highest grades ever recorded at Fosterville and confirm significant gold mineralization at depth outside of previously reported Indicated Mineral Resources. Additionally, we have discovered the Aurora B East Flank target at Stawell and the Western Lodes Target at Cosmo.”
Mr. Forster concluded: “Looking ahead, we will continue to advance on our growth exploration programs, while monitoring movements in the gold price, to ensure we achieve our top priority of resource growth to support future sustainable production and continued positive cash flow generation. We also look forward to executing on our growth strategy through the acquisition of new opportunities that will be accretive to our business with the goal of creating significant value for shareholders.”
Second Quarter 2015 Financial Results
Financial Results Q2 2015 Q2 2014 YTD 2015 YTD 2014
Revenue ($) 66,044,377 69,231,729 138,941,212 139,619,365
Cost of operations, including depletion and depreciation ($) (46,526,035 ) (61,103,354 ) (99,661,175 ) (124,193,323 )
Mine operating income ($) 19,518,342 8,128,375 39,280,037 15,426,042
Net income ($) 12,071,914 3,934,331 27,774,834 608,594
Net income per share ($/share) basic(1) 0.10 0.03 0.24 0.01
Net income per share ($/share) diluted(1) 0.10 0.03 0.23 0.01
Cash generated from operating activities ($) 27,071,458 18,184,443 54,557,811 30,643,907
Capital investment in mine development, property, plant and equipment ($) 17,156,990 16,978,369 30,617,360 33,811,057
Average realized gold price ($) 1,196 1,291 1,190 1,289
Average quoted gold price ($) 1,192 1,289 1,206 1,291
Operating cash costs per ounce sold ($)(2) 681 965 682 968
All-in sustaining cash costs per ounce sold ($)(2) 1,037 1,316 985 1,311
(1) Income per share, basic and diluted, is presented after giving effect to the share exchange ratio following the completion of the merger between Newmarket Gold and Crocodile Gold. Refer to note 2 of the interim financial statements dated July 30, 2015.
(2) Refer to non-IFRS measures below.
Three Months Ended June 30, 2015
Consolidated gold production in Q2 2015 of 55,998 ounces increased 3.7% compared to Q2 2014, also representing two full years of quarterly production above 53,000 ounces. Average consolidated mill grade of 3.31 g/t increased 8.5% compared to prior year, in addition to a strong increase in consolidated mill recovery to 88.0%. Total gold sold increased 2.9% year-over-year to 55,154 ounces.
For the quarter ended June 30, 2015, consolidated revenues were $66.0 million, down 4.6% compared to $69.2 million in the corresponding quarter of 2014. The decline was attributable to a 7.4% drop in the average realized gold price per ounce to $1,196, down from $1,291 in Q2 2014, which more than offset the increase in gold sold over the corresponding period in 2014.
Operating expenses, including royalties, decreased 27.3%, resulting in record low operating cash costs of $681 per ounce sold compared to $965 in the prior year. The decrease in costs is attributable to a focus on cost management across the business and productivity initiatives. In particular, lower expenses at Cosmo, greater productivity at Fosterville, lower fuel costs, general cost reduction initiatives including, hiring freezes and supply tender processes, all contributed to record low operating cash costs. Additionally, a 16.6% year-over-year weakening of the average Australian dollar exchange rate further contributed to the decline. As a result, mine operating income improved 140% year-over-year to $19.5 million.
Net income for the quarter ended June 30, 2015 was $12.1 million, or $0.10 per share, compared to $3.9 million or $0.01 per share in Q2 2014. Per share amounts are presented after giving effect to the share exchange ratio following the completion of the merger between Newmarket Gold and Crocodile Gold. Refer to note 2 of the interim financial statements dated July 30, 2015.
Operating cash flow for the quarter ended June 30, 2015 was $27.1 million, a 48.9% improvement compared to the Q2 2014 period driven by strong gold sales and a significant reduction in operating costs which offset the impact of a lower gold price environment.
Mine development in the second quarter was $12.8 million. Development focused largely at Fosterville and Cosmo, with an additional $4.4 million invested in plant and equipment. Capital expenditures were relatively comparable to the corresponding quarter of 2014, due to the timing of certain projects and capital development and the weaker Australian dollar.
Due to a significant decrease in operating cash costs, increasing gold production, driven by strong grades and recoveries, and a weakened Australian dollar, all-in sustaining cash costs improved to $1,037 per ounce sold from $1,316 in Q2 2014, a 21.2% decrease.
Financial Position
For the period ended June 30, 2015, the cash and gold bullion balance (at fair market value) was $38.8 million. In the first six months of 2015, working capital increased significantly to $25.1 million, compared to $12.6 million at December 31, 2014. This was a notable achievement as the Company was able to make a one-time cash payment of $16.7 million (C$20 million), and grant a royalty over Fosterville and Stawell Mines, to AuRico Gold Inc. to terminate a net free cash flow sharing arrangement over Fosterville and Stawell, without the addition of debt.
As at June 30, 2015, the unaudited pro-forma cash and gold bullion balance was $39.4 million, which included the balances for Newmarket and Crocodile Gold. The pro-forma balance is before the net proceeds from the subscription receipt financing and most transaction costs associated with the merger between Newmarket Gold and Crocodile Gold. The pro-forma unaudited working capital was approximately $24.0 million at June 30, 2015.
Foreign Exchange
The significant drop in the Australian dollar exchange rate has markedly increased the gold price in Australian dollar terms (the functional currency of the Company’s current operations) while having the effect of lowering cash costs in US dollar terms. The Australian dollar closed at $0.7693 on June 30, 2015, down 5.8% from year-end. Consequently, Australian dollar denominated gold has traded above A$1,500 per ounce consistently since mid-January, trading above A$1,600 for a period of time. The average quarterly exchange rate has dropped 16.6% compared to Q2 2014, which accounted for a portion of the decrease of operating and all-in sustaining cash costs per ounce sold, complementing the reduction in local currency costs achieved through cost reduction and productivity initiatives.
Exploration Update
For the quarter ended June 30, 2015, $2.7 million was deployed on various exploration drill programs advancing several strategic near-term growth projects across all sites. These drill programs resulted in significant discoveries and resource building opportunities including the high-grade Eagle Fault discovery at Fosterville, the Western Lodes Target at Cosmo and the Aurora B East Flank discovery at Stawell.
Additionally, a phased Feasibility Study on the 100% owned Maud Creek Gold Deposit commenced on the first phase being the completion of a Preliminary Economic Assessment (“PEA”) which is expected to be completed in early 2016.
Second Quarter 2015 Operational Results
Fosterville Gold Mine Q2 2015 Q2 2014 YTD 2015 YTD 2014
Ore Milled (t) 173,323 202,927 348,650 423,306
Grade (g/t Au) 5.92 3.95 5.84 4.14
Recovery (%) 89.0 85.7 89.1 84.9
Gold Oz Produced 29,648 22,198 58,783 47,984
Gold Oz Sold 29,139 21,509 60,371 47,318
Cosmo Gold Mine
Ore Milled (t) 193,084 213,815 383,390 444,630
Grade (g/t Au) 2.97 3.69 3.33 3.23
Recovery (%) 92.7 86.3 91.9 86.0
Gold Oz Produced 17,073 21,845 37,685 39,686
Gold Oz Sold 16,522 21,977 36,721 41,393
Stawell Gold Mines Q2 2015 Q2 2014 YTD 2015 YTD 2014
Ore Milled (t) 221,974 234,363 442,061 461,990
Grade (g/t Au) 1.57 1.69 1.66 1.70
Recovery (%) 83.1 78.8 81.7 79.1
Gold Oz Produced 9,277 9,981 19,207 19,937
Gold Oz Sold 9,493 10,126 19,356 19,636
2015 Production and Cash Cost Guidance
As previously announced, see Crocodile Gold’s press release dated January 12, 2015, Newmarket reaffirmed full year production and cash cost guidance for fiscal 2015 as follows:
(U.S.) $ Fosterville Cosmo Stawell Consolidated
2015
Gold Production (ounces) 100,000 - 105,000 75,000 - 85,000 ~30,000 205,000 - 220,000
Operational Cash Costs per ounce* $670 - $750 $850 - $930 $945 - $1,025 $780 - $860
AISC per ounce*(1) $1,020 - $1,100
* See Non-IFRS Disclosures
(1) All-In Sustaining Cash Costs per Ounce (“AISC”) Includes Corporate General and Administrative Expenses.
Second Quarter 2015 Financial Earnings Conference Call Details
Douglas Forster, President and Chief Executive Officer, Rodney Lamond, Chief Operating Officer and Robert Dufour, Chief Financial Officer, will host a conference call to discuss second quarter financial results ended June 30, 2015 on Thursday, July 30, 2015, at 10:30 a.m. (EDT).
Participants may listen to the call by dialing toll free 1-800-319-4610 or 1-416-915-3239 at approximately 10:20 a.m. (EDT) and ask to join the Newmarket Gold conference call. International or local callers should dial 1-416-915-3239 at approximately 10:20 a.m. (EDT) and ask to join the Newmarket Gold conference call.
The call will also be webcast live at this link and at www.newmarketgoldinc.com in the Events and Webcast section under the Investor Relations tab.
The live audio webcast will be archived and made available for replay at www.newmarketgoldinc.com.
Presentation slides which accompany the conference call will be made available in the Investors section of the Newmarket Gold website, under Presentations, prior to the conference call.
Qualified Person
Mark Edwards, MAusIMM (CP), MAIG, General Manager, Exploration, Newmarket Gold, is a “qualified person” as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.
ON BEHALF OF THE BOARD
Douglas Forster, M.Sc., P.Geo., President & Chief Executive Officer
About Newmarket Gold Inc.
Newmarket Gold is a Canadian-listed gold mining and exploration company with three 100% owned operating mines across Australia. The Company is focused on creating substantial shareholder value by maintaining a strong foundation of quality gold production, over 200,000 ounces annually, generating free cash flow and maintaining a large resource base as it executes a clearly defined gold asset consolidation strategy. The Company is focused on sustainable operating performance, a disciplined approach to growth, and building gold reserves and resources while maintaining the high standards that the Newmarket Gold core values represent.
NON-IFRS MEASURES
Newmarket Gold has included in this MD&A certain non-IFRS performance measures as detailed below. In the gold mining industry, these are common performance measures but do not have any standardized meaning. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Accordingly, it is 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.
Operating Cash Costs per Ounce of Gold - Newmarket Gold calculates operating cash costs per ounce by deducting silver sales revenue as a by-product from operating expenses per the consolidated statement of operations, then dividing by the gold ounces sold during the applicable period. Operating expenses include mine site operating costs such as mining, processing and administration as well as royalties, however excludes depletion and depreciation, share-based payments and rehabilitation costs.
All-In Sustaining Costs per Ounce of Gold - Newmarket Gold has adopted an all-in sustaining cost performance measure that reflects all of the expenditures that are required to produce an ounce of gold from current operations. While there is no standardized meaning of the measure across the industry, the Company’s definition conforms to the all-in sustaining cost definition as set out by the World Gold Council in its guidance dated June 27, 2013. The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. The Company believes that this measure will be useful to external users in assessing operating performance and the ability to generate free cash flow from current operations.
The Company defines all-in sustaining costs as the sum of operating cash costs (per above), sustaining capital (capital required to maintain current operations at existing levels), capital lease repayments, corporate general and administrative expenses, mine exploration within the known resource, and rehabilitation accretion and amortization related to current operations. All-in sustaining costs excludes capital expenditures for significant improvements at existing operations deemed to be expansionary in nature, exploration and evaluation related to growth projects, rehabilitation accretion and amortization not related to current operations, financing costs, debt repayments, share-based compensation not related to operations, and taxes.
Q2 2015 Q2 2014 YTD 2015 YTD 2014
Operating expense per the condensed interim consolidated statement of operations, including royalties 37,649,451 51,821,752 79,622,377 105,046,126
By-product silver sales credit (80,728 ) (91,998 ) (169,201 ) (171,358 )
Operating cash costs ($) 37,568,723 51,729,754 79,453,176 104,874,768
Sustaining mine development (1) 12,560,599 13,610,514 23,531,627 27,616,278
Sustaining capital expenditures, including capital lease payments 4,730,234 3,323,711 7,457,219 6,281,278
General and administration costs 1,909,379 1,187,625 3,417,462 2,162,300
Rehabilitation - accretion and amortization (operating sites) 260,152 394,440 529,350 661,438
Mine exploration 143,524 297,047 292,405 493,310
All-in sustaining cash costs ($) 57,172,611 70,543,091 114,681,239 142,089,446
Gold ounces sold 55,154 53,612 116,447 108,347
Operating cash costs per ounce sold ($ / ounce) 681 965 682 968
All-in sustaining cash costs per ounce sold ($ / ounce) 1,037 1,316 985 1,311
(1) Sustaining mine development are defined as those expenditures which do not increase annual gold production at a mine operation and exclude expenditures for growth projects and mine development to commercial production. Total sustaining capital is calculated as follows:
Q2 2015 Q2 2014 YTD 2015 YTD 2014
Expenditure on mine development per the statement of cash flows 12,793,418 14,777,079 23,937,799 29,758,705
Less: Big Hill Project development costs (232,819 ) (1,166,565 ) (406,172 ) (2,142,353 )
12,560,599 13,610,514 23,531,627 27,616,352
Cautionary Note Regarding Forward-Looking Information
Certain information set forth in this news release contains “forward-looking statements”, and “forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company’s expectations about its business and operations, and are based on the Company’s current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as “will”, “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These statements are not guarantees of future performance or outcomes and undue reliance should not be placed on them. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, 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. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are included in this press release or incorporated by reference herein, except in accordance with applicable securities laws.
Newmarket Gold, Inc.
Laura Lepore
Director, Investor Relations
416.847.1847
llepore@newmarketgoldinc.com
www.newmarketgoldinc.com
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