Elgin Mining Reports Third Quarter 2013 Production and Provides Operational and Corporate Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 21, 2013) - http://www.elginmining.com/s/NewsReleases.asp?ReportID=608263&_Type=News-Releases&_Title=Elgin-Mining-Reports-Third-Quarter-2013-Production-And-Provides-Operational
... Elgin Mining Inc.
("Elgin Mining" or the "Company") (TSX:ELG)(TSX:ELG.WT) is pleased
to announce production results for the third quarter of 2013 at
its Björkdal gold mine in Sweden.
The Company also provides preliminary operating and cost details
for 2014 based on a recently completed revised mine plan.
The plan is based upon achieving all-in-cash costs, including
capex and corporate general and administration, of below
Third Quarter 2013 Production http://web.tmxmoney.com/article.php?newsid=63377886&qm_symbol=ELG
During the third quarter the Company reported quarterly production of 10,751 ounces of gold as detailed in the following table:
Q3-2013 Q3-2012 % Change
Tonnes milled 328,441 328,347 0
Tonnes per day 3,570 3,569 0
Au grade (g/t) 1.17 1.15 3.2
Recovery % 87.3% 87.6% -0.3
Gold production (ozs) 10,751 10,460 2.8
The focus in Q3-2013 was in reducing operating costs per tonne moved in the open pit back to recent historical costs. This changeover commenced in August and is progressing well. We expect to have open pit costs back at or near historical levels in mid Q4-2013. In the underground mine the switch to owner operated mining continued through the quarter with the final equipment delivered. Once the changeover is completed and productivity is at planned levels we expect that unit operating costs will continue to improve.
2014 Mine Plan
The Company has also completed its preliminary mine plan for 2014. The plan is based on a schedule of ore that will maintain all-in-cash costs below US$1,200/ounce, based on a Swedish krona/USD exchange rate of 6.5:1.
General details are shown in the tables below.
Mill Feed Tonnes Average Grade Recovered Ounces Cash Cost (USD/oz)
1,299,600 1.17 42,936 990
The above tonnage and grades are based on approximately 40% open pit, 40% underground and 20% stockpile and cash cost includes TC/RC's, based on a FX rate of 6.50 SEK per USD.
2014 Cash Flow Estimates (USD millions)*
Bjorkdal Operating Cash Flow 9.0
Bjorkdal Capex (3.8)
Corporate G & A (1.9)
Lupin/Ulu (Care and Maintenance) (0.9)
Principal and Interest Payments (net) (1.1)
Net Cash Flow 1.3
based on USD$1,200/oz gold price; FX rate of 6.50 SEK per USD and parity between CAD and USD
During 2014 capital projects will be carefully controlled and exploration will be limited to underground planning.
The Company has over 6 months of underground stope inventory developed and ready for mining which will act as a buffer to the underground mine plan, if necessary.
Commenting on the above, Mr. Patrick Downey, President and CEO, stated, "Our team has worked diligently over the past number of months to achieve all-in-cash costs that can be sustainable within the current volatile gold price environment. We expect to see continued cost improvements through to the end of 2013 and further into 2014.
Mining underground is now fully owner-operated and we shall see ongoing cost savings in this key area of the mine. The new equipment is better suited to mining narrower on-vein widths which should reduce mine dilution. It should be noted that the mine previously delivered over 1.1 million tonnes at an average head grade of 1.77 g/t Au and, with the new equipment, careful planning and development, these recent historical feed grades should be readily achievable."
The Company also announces that, with operational changes now in-place and the placement of Lupin and Ulu under long-term care and maintenance, Jim Currie, Chief Operating Officer, has left the Company. The Company thanks Mr. Currie for his efforts and contributions to Elgin Mining and wishes him the best in future endeavours.
Elgin Mining Inc.
Elgin Mining is a Canadian based company focused on production at the Björkdal gold mine in Sweden. In addition, Elgin Mining's portfolio includes the Lupin and Ulu gold projects located in Nunavut, Canada.
For further information, please visit the Company's web site at http://www.elginmining.com http://investorshub.advfn.com/Elgin-Mining-Inc-(Gold-Ore-Resourses)-TSX-ELG-6067/