VANCOUVER, British Columbia, Nov. 23, 2017 (GLOBE NEWSWIRE) -- Core Gold Inc. ("Core Gold" or
the "Company") (TSX-V:CGLD)(OTCQX:CGLDF) is pleased to provide an update on gold production. Core Gold has
produced 8,507 ounces of gold year to date October 31, 2017 including 2,215 ounces in October 2017 solely from the new Dynasty
Goldfield mining unit. The Dynasty Goldfield is the first new mining unit put into production by Core Gold Inc.
Production Update
Since changing management in September 2016, the Company has focused its mining activities at the Dynasty
Goldfield project. Mining activities at Dynasty Goldfield began in January 2017 and since then the Company has successfully ramped
up production from Q1 to Q3 2017. Although a much heavier than usual El Niño-related rainfall in Q2 hindered ramp up, the Company
successfully stabilized production in Q3 2017, reaching a peak monthly production rate of approximately 1,800 oz of gold per month.
In the month of October 2017, production reached a record level of approximately 2,215 oz of gold, the highest monthly level since
commencement of production.
Based upon the current Portovelo plant (formerly known as the Zaruma plant) capacity of 750 tons per day, gold
production from the Dynasty Goldfield mining unit alone may be able to sustain an annualized rate of approximately 22,000 to 26,000
ounces.*
An infographic accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/ab4f5888-5749-48e7-a8f1-7ffb3b4955f1.
*Please see “Cautionary Note regarding Production without Mineral Reserves” at the end of the news
release.
|
|
Period |
Gold Production (oz Au) |
Q1
2017 |
1,170 |
Q2
2017 |
898 |
Q3
2017 |
4,233 (peak
monthly production at 1,800 oz) |
Q4
2017 (October 2017 only) |
2,215 |
Total year to date (10 months ended) |
8,516 |
|
|
Keith Piggott, President and Chief Executive Officer of Core Gold, commented: “We are very pleased to
announce that we have ramped up gold production and that we have put an entirely new mining unit into production at Dynasty
Goldfield. The Dynasty Goldfield mining unit is an asset that we took into production within four months of assuming control of
Core Gold and we are very excited by its operational results. We will strive to further improve our production figures in the
upcoming fiscal year and to start executing on our high impact exploration plans throughout the Dynasty District shortly.”
All of the Company’s material from Dynasty Goldfield is being trucked to the Company’s wholly owned Portovelo
processing plant for processing and sale. Core Gold management wholly refurbished the crushing circuit at the Portovelo processing
plant and has plans in place to increase plant capacity back up to its nameplate 2,000 tpd capacity with a USD $4M capital
expenditure program. The main thrust of this plan will include refurbishment of the milling circuit where currently only one 1,000
tpd mill is operational and increasing carbon-in-pulp tank capacity.
The Dynasty Goldfield Project
Per the 43-101 Technical Report entitled "Dynasty Goldfield Project – Celica, Loja Province, Ecuador" dated
October 22, 2014 (which can be found on both the Core Gold website www.coregoldinc.com and at www.sedar.com) (the "Technical Report"), with over 1.0 million ounces of gold
in the Measured and Indicated mineral resource categories and another 1.1 million ounces of gold in the inferred category, the
Dynasty Goldfield Project has the potential to significantly drive the Company’s gold production going forward.
The Dynasty Goldfield Project is fully qualified and permitted under Ecuador's small-scale mining regime and
subject to a fixed 3% royalty with no windfall tax. The small-scale mining regime allows open pit activities with an exploitation
volume of up to 1,000 tonnes a day per concession, which would allow up to a total of 3,000 tonnes per day production from the
three contiguous concessions that contain the Dynasty Goldfield's gold resources.
Mineral resource estimate for the Dynasty Goldfield Project is as follows (please refer to the Technical Report
for further details):
|
|
|
|
|
|
Category |
Tonnes
(t) |
Gold
grade
(g/t) |
Contained
Gold (ozs) |
Silver
grade
(g/t) |
Contained
Silver (ozs) |
Measured |
2,909,000 |
4.7 |
437,000 |
38.1 |
3,567,000 |
Indicated |
3,958,000 |
4.6 |
585,000 |
38.8 |
4,936,000 |
Total M&I |
6,867,000 |
4.6 |
1,022,000 |
38.5 |
8,504,000 |
Inferred |
7,825,000 |
4.4 |
1,118,000 |
39.4 |
9,901,000 |
|
|
|
Note: A cut-off grade of 2.0 g/t was used to derive the mineral resource estimate.
Since commencement of production at Dynasty Goldfield, the head grade of mined material delivered to the Zaruma
processing plant has averaged 3.2 grams/ton gold, which when accounting for mining dilution is consistent with the resource grade
as defined in the Technical Report despite not having established reserves. Further, since commencement of production along 6
previously identified veins in the Cerro Verde Zone of the project, the Company is pleased to announce that a further 3 veins have
been discovered and mined suggesting further potential upside to the project’s already significant resources and development
potential.
The Dynasty Goldfield Project covers an area of approximately 21,909 hectares within the Dynasty Copper-Gold
Belt. The Dynasty Goldfield Project includes the Papayal Project and Cerro Verde quartz vein swarms and stockworks, where drilling
has confirmed the presence to depth of high-grade gold and silver mineralization.
To date, 26,700 metres of drilling have been completed on the Dynasty Goldfield concessions, to depths of
approximately 200 metres.
Mining operations at Dynasty Goldfield are directed by Core Gold management and undertaken by Green Oil S.A, an
Ecuadorian contractor. Under the terms of the contractor agreement with Green Oil S.A, the contractor funded initial mining capital
expenditures at Dynasty Goldfield and funds ongoing working capital requirements in return for 40% of refined gold sales and 10% of
refined silver sales from the concessions defined under the agreement. For further details on the agreement with Green Oil S.A
please refer to the Company’s news release from April 27th, 2016.
Please see “Cautionary Note regarding Production without Mineral Reserves” at the end of the
news release.
Qualified Person
John Bolaños, a qualified person under NI 43-101 guidelines, has reviewed and approved the technical content of
this news release. Mr. Bolaños is a member of the Society of Economic Geologists Inc. (USA), a Fellow of the Geological
Society of London, an Environmental Consultant, a Qualified Geologist in Ecuador and a member of both the Engineering College of
Ecuador and the Ecuadorian Mining Chamber. Mr. Bolaños is currently a consultant for the Company.
Cautionary Note regarding Production without Mineral Reserves
The decision to commence production at the Dynasty Goldfield Project and the Company's ongoing mining operations
as referenced herein (the "Production Decision and Operations") are based on economic models prepared by the
Company in conjunction with management's knowledge of the property and the existing estimate of measured, indicated and inferred
mineral resources on the property. The Production Decision and Operations are not based on a preliminary economic assessment, a
pre-feasibility study or a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there
is increased uncertainty and economic and technical risks of failure associated with the Production Decision and Operations, in
particular: the risk that mineral grades will be lower than expected; the risk that additional construction or ongoing mining
operations are more difficult or more expensive than expected; and production and economic variables may vary considerably, due to
the absence of a detailed economic and technical analysis in accordance with NI 43-101.
About Core Gold Inc.
The Company is a Canadian based mining company involved in the mining, exploration and development of mineral
properties in Ecuador. The Company is currently focused on gold production at its wholly-owned Dynasty Goldfield project and
continued development at its Zaruma mine. Mineral is treated at the Company’s wholly-owned Portovelo treatment plant close to the
Zaruma mine operations. The Company also owns other significant gold exploration projects including the Copper Duke area and the
Linderos area in southern Ecuador all of which are on the main Peruvian Andean gold-copper belt extending into Ecuador, and the
Jerusalem Project (located 30 kilometers south of the Fruta del Norte project).
For further information please contact:
Keith Piggott, CEO
Suite 1201 – 1166 Alberni Street
Vancouver, B.C. V6E 3Z3
Phone: +1 (604) 345-4822
Email: info@coregoldinc.com
Forward-Looking Information
This news release contains statements which are, or may be deemed to be, “forward-looking information” or
"forward-looking statements" which are prospective in nature. Such information in this news release includes statements relating to
the Company's expectations concerning the production, capacity, mineralization and expansion potential for its Dynasty Goldfield
Project. The Company has made numerous assumptions about such statements, including assumptions relating to the geological
merits, operations, and financing requirements of the Dynasty Goldfield Project. Even though our management believes the
assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that they will prove
to be accurate. Forward-looking information involves known and unknown risks, uncertainties and other factors which may
cause Core Gold’s actual results, revenues, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking information. Important risks that could cause Core Gold’s
actual results, revenues, performance or achievements to differ materially from Core Gold’s expectations include, among other
things, include risks relating to the actual results of current exploration and production activities; fluctuating prices
in metals and other commodities; possibility of accidents, equipment breakdowns, labor disputes or other unanticipated
difficulties with or interruptions in production and operations; exploration and production cost overruns; the geology,
grade and continuity of mineral deposits; currency fluctuations; availability of capital and financing to maintain the Company's
operations and plans; general economic, market or business conditions; regulatory changes; timeliness of government or regulatory
approvals; and other risks detailed herein and in the Company’s Annual Information Form for the year ended December 31,
2016, which is available on SEDAR at www.sedar.com. Other than in accordance with regulatory obligations, Core Gold is not under
any obligation and Core Gold expressly disclaims any intention or obligation to update or revise any forward-looking information or
statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.