Q4 results
Signal Gold Announces Q4 and Full Year 2022 Production Results and Provides Update on the Point Rousse Project
1/31/2023
TORONTO, ON / ACCESSWIRE / January 31, 2023 / Signal Gold Inc. ("Signal Gold" or the "Company") (TSX:SGNL)(OTCQX:SGNLF) is pleased to report its production results and certain preliminary and unaudited financial information for the three months and year ended December 31, 2022, and to provide an update on the winding down of the Point Rousse operation to care and maintenance. All dollar amounts are in Canadian Dollars. The Company expects to file its full audited annual financial statements and management discussion and analysis by March 2, 2023.
As announced on October 25, 2022, the Company has begun winding down its current operations at Point Rousse and has now completed mining at the Argyle Mine. As of the date of this press release, all ore from the Argyle Mine has been hauled to the Pine Cove Mill. During the fourth quarter of 2022, Point Rousse produced 4,712 ounces of gold, resulting in annual production of 17,948 ounces for 2022. The Company sold 18,078 ounces of gold in 2022 to generate metals revenue of $41.7 million, including 4,874 gold ounces in Q4 2022 to generate metals revenue of $11.3 million, and the Company ended the year with a cash balance of $9.2 million. Production for 2022 was lower than the revised annual guidance of 20,000 to 21,000 ounces due to operational constraints related to blasting and mucking of the final benches in the pit late in the fourth quarter and lower than planned mill availability due to weather related issues in the crushing circuit, which deferred ore production into January of 2023. The remaining ore stockpiles are expected to be processed by early March and the site has already commenced certain progressive rehabilitation activities, including the backfilling of the settlement pond at Argyle and the reclamation of tailings storage #1. The Company continues to review strategic alternatives to maximize the value of its Newfoundland assets.
"I would like to thank the committed employees of our Point Rousse operation for their safe and professional work over the past quarter as we wind down mining and processing activities. After continuous mining at Point Rouse since 2010, all employees and stakeholders at Point Rousse have much to be proud of from their hard work and dedication, extending the operation well beyond the original life of mine. During the fourth quarter, the Company sold 4,874 ounces of gold to generate $11.3 million in metals revenue, and the Company expects to process and sell up to another 2,500 ounces in Q1 2023 as the operation transitions to care and maintenance. The Company continues to consider strategic alternatives for its Newfoundland assets, which include the only permitted gold processing facility in Newfoundland, a deep water port, and a permitted in-pit tailings facility with long-term capacity, and ~15,000 hectares of highly prospective mineral property, including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project."
~Kevin Bullock, President and CEO, Signal Gold Inc.