Elgin Mining Inc ELGMF

They listened to you guys... seems sensible

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Elgin Mining Announces Cost Cutting Measures and Revised Capital Allocation Plan

Monday, April 29, 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 29, 2013) -Elgin Mining Inc. ("Elgin Mining" or the "Company") (TSX:ELG)(TSX:ELG.WT) announces that the Company has taken and will continue to undertake the following steps in order to effectively manage the Company's treasury in light of the current market turbulence and weakening of the price of gold:

• The Lupin Gold Project capital and operational development budget has been significantly curtailed with expenditures being reduced by approximately $5.3 million for 2013. The camp has already been shut down. Work will continue, where necessary to ensure all permits are kept in good standing. The camp and infrastructure are in excellent condition, which will allow re-opening in an expeditious manner. It must be emphasized that should the gold price strengthen and there are more favourable capital markets, there is every opportunity to re-commence development of the Lupin Project and re-start operations along the original timelines;
  
  
   
• Corporate general and administrative expenses have been reduced by over $1 million for the remainder of the year through reduction in employee and consultant costs, in travel and marketing costs and discretionary or non-essential expenditures;
  
  
   
• Reduction in Bjorkdal sustaining capital expenditures of $2.4 million for the remainder of 2013; and
  
  
   
• Reduction or elimination of all regional exploration programs.
  
  
   

The Company will continue to focus on the ongoing operational improvements at the Bjorkdal Gold Mine in Sweden. Delivery of the equipment to allow the transition from contractor mining to owner operated mining in the underground mine has now commenced and this will facilitate the optimization of both the short and long term mine plan, and ultimately reduce the operating costs.

The in-house study to expand the Bjorkdal mill will continue as the Company believes this to be the next building block in expanding production and reducing on-going operating costs. Accordingly, the Company will continue to drill the planned holes, both up-dip and down-dip of the newly discovered Lake Zone.

Further the Bjorkdal Mine offers significant flexibility in the operating plan should gold prices weaken further. With the combination of open pit, a shallow underground operation and significant low cost stockpiles, the mine plan can be optimized to reduce cash costs accordingly.

Commenting on the above, Patrick Downey, President and Chief Executive Officer, stated: "We believe that the Company has taken prudent steps to reduce capital and operating expenditures in an expeditious manner in this uncertain and challenging gold price environment. We have taken measures to preserve our treasury and ensure that the Company remains on a strong financial footing."

Elgin Mining Inc.

Elgin Mining is a Canadian-based company focused on production at the Bjorkdal gold mine in Sweden, which surpassed its first millionth ounce of gold production in 2010. In addition, Elgin Mining's portfolio includes the Lupin gold project and the Ulu gold project, both located in Nunavut, Canada, a 29.5% interest in Auracle Resources Ltd., which is exploring the Mexican Hat property in Arizona, an exclusive right and option to earn a 60% interest in Lincoln Mining Corporation's Oro Cruz (California) and La Bufa (Mexico) gold projects and an option to earn a 60% interest in North Arrow Minerals Inc.'s Contwoyto gold project located adjacent to the Lupin gold mine in Nunavut, Canada. Elgin Mining also selectively reviews opportunities to add advanced stage development projects to its portfolio. The Company has a strong balance sheet, generates cash flow from gold sales, and remains un-hedged.