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Elgin Mining Reports Second Quarter 2013 Results

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NYBob Member Level  Tuesday, 08/13/13 02:55:32 PM
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Elgin Mining Reports Second Quarter 2013 Results


Vancouver, British Columbia, August 12, 2013 -

Elgin Mining Inc.
("Elgin Mining" or the "Company") (TSX: ELG and ELG.WT) reports its
financial and operational results for the three months ended
June 30, 2013.
Elgin Mining owns and operates the Björkdal gold mine ("Björkdal")
in Sweden, and holds the past-producing Lupin gold mine ("Lupin")
and the Ulu gold property in Nunavut, Canada. All figures are in
Canadian dollars ($ or CAD) unless otherwise indicated.

A copy of the Company's financial statements and Management's
Discussion and Analysis can be viewed on the Company's website at

or on SEDAR at www.sedar.com.

Second Quarter 2013 Highlights

Gold production of 12,343 gold ounces;

Cash cost per gold ounce sold of US$1,198;

Cash cost per gold ounce produced of US$1,134;

Cash provided by operating activities was $1.9 million;

Net loss of $10.6 million which included $1.3 million in Lupin pre-
development costs, $4.3 million in after-tax impairment charges
relating to mineral properties and investment in associate, and
$0.7 million in employee severance costs;

Basic and diluted loss per share of $0.07;

Gold production and cash cost per ounce produced for the first six
months of 2013 in line with previously stated guidance for this
year (see "Outlook" section below);

To address the rapid decline in the price of gold experienced in the
current period, the Company undertook the following actions to
manage the Company's existing treasury:

Significantly reduced the Company's cash burn outside of Björkdal by
deferring all planned programs at Lupin for 2013, including placing
the Lupin camp on care and maintenance indefinitely, and by
significantly reducing all corporate general and administration
costs through the reduction in staff and elimination of
expenditures to essential levels needed to support the Company's
key operations and projects; and

Initiated work on a revised flexible short-term mine plan for
Björkdal that maximizes cash flow over the next 12 to 18 months
that will be based on the optimum mix of open pit, underground and
stockpile ore to the plant while minimizing sustaining capital
expenditures without jeopardizing the long-term health of the open
pit and underground, respectively;

Received the mining permit for the Lake Zone at Björkdal in May 2013
which allowed the Company to process ore stockpiled from this zone
in earlier quarters and to extend development drifts to commence
further mining of these veins;

Continued progress on the transition from contractor to owner mining
in the underground through the receipt of further equipment
deliveries and the hiring of more underground miners;
Released an updated mineral resource and reserve estimation for the
Björkdal Mine in June 2013 showing an overall increase in reserves
and resources, net of mine depletion, from the previous estimation
released in March 2012.


Elgin Mining Inc. (Gold Ore Resourses) (TSX:ELG) Presentations -




ELITE Hoarding GOLD In Face Of Coming COLLAPSE & The End of The USD YouTube -


God Bless

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