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Mangazeya Mining Ltd. announces its production results

Publish date: 29.04.2019

Print version

TORONTO, ONTARIO, April 29, 2019 – Mangazeya Mining Ltd. (“Mangazeya” or the “Company”) (NEX:MGZ.H) is pleased to announce its production results for the fourth quarter and the twelve months ended December 31, 2018.

Highlights:

Q4 2018 Q4 2017 Y-o-Y change 12m 2018 12m 2017 Y-o-Y change
Total rock moved, ‘000 m3 1 339 1 284 4,3% 6 174 4 993 23,6%
Savkinskoye 1 311 1 284 2,1% 5 167 4 993 3,5%
Kochkovskoye 28 100,0% 1 007 100,0%
Stripping, ‘000 m3 1 237 1 235 0,2% 5 636 4 546 24,0%
Savkinskoye 1 209 1 235 -2,1% 4 778 4 546 5,1%
Kochkovskoye 28 100,0% 858 100,0%
Ore mined, kt 172 104 65,4% 1 172 951 23,2%
Savkinskoye 213 104 105,0% 822 951 -13,6%
Kochkovskoye -41 100,0% 350 100,0%
Stripping ratio, m3/t 7,20 11,88 -39,4% 4,81 4,78 0,6%
Savkinskoye 5,68 11,88 -52,2% 5,81 4,78 21,6%
Kochkovskoye – 0,68 100,0% 2,45 100,0%
Average grade in ore mined, g/t 0,92 1,19 -23,0% 1,43 1,26 13,2%
Savkinskoye 1,13 1,19 -5,0% 1,22 1,26 -3,6%
Kochkovskoye 2,03 100,0% 1,92 100,0%
Gold in ore mined, kg 158 124 27,3% 1 673 1 199 39,5%
Savkinskoye 241 124 94,8% 999 1 199 -16,7%
Kochkovskoye – 84 100% 674 100,0%
Ore stacked, kt 58 150 -61,6% 870 999 -12,9%
Savkinskoye 82 150 -45,8% 678 999 -32,1%
Kochkovskoye – 24 100,0% 192 100,0%
Average grade in ore stacked, g/t 1,36 1,19 14,1% 1,37 1,17 16,7%
Savkinskoye 1,34 1,19 12,6% 1,20 1,17 2,6%
Kochkovskoye 1,27 100,0% 1,96 100,0%
Gold in ore stacked, kg 79 180 -56,2% 1 192 1 173 1,6%
Savkinskoye 109 180 -39,4% 816 1 173 -30,5%
Kochkovskoye – 30 100,0% 376 100,0%
Gold production, koz 8,52 5,47 55,7% 27,67 24,32 13,8%
Savkinskoye 5,31 5,47 -3,0% 19,67 24,32 -19,1%
Kochkovskoye 3,21 100,0% 8,00 100,0%
including
ore gold 2,89 100,0% 6,56 100,0%
placer gold 0,33 100,0% 1,44 100,0%
Gold sold, koz 10,23 6,51 57,2% 22,24 24,11 -7,7%
Savkinskoye 5,97 6,51 -8,3% 14,24 24,11 -40,9%
Kochkovskoye 4,26 100,0% 8,00 100,0%
including
ore gold 3,46 100,0% 6,56 100,0%
placer gold 0,80 100,0% 1,44 100,0%

Kochkovskoye deposit

  • The volume of mining in 12 months 2018 was as follows: total ore mined was 350 kt, average grade in ore mined was 1.92 g/t, average stripping ratio was 2.45 m3/t, ore stacked was 192 kt, average grade in ore stacked was 1.96 g/t, gold production was 6.56 koz, gold sold was 6.56 koz. The Company engages a contractor to produce placer gold. In 12 months 2018, placer gold production was 1.44 koz, placer gold sold was 1.44 koz.
    In 2018, the Company was performing the pre-production development aiming at defining process indicators and adjusting process parameters for Kochkovskoye deposit.
  • In Q4 of 2018, mining at Kochkovskoye deposit continued. In Q4 2018, performance indicators were adjusted. The adjustment has been done to factor in the results of the tests aimed at determining the cyanated ore density at pillars and changing the value from 2.71 to 2.28 t/m3. In Q4 2018, gold production was 2.89 koz, gold sold was 3.46 koz. The contractor produced 0.33 koz of placer gold, and placer gold sold was 0.80 koz.

Savkinskoye deposit

  • Gold production reduced by 19.1% in 12m 2018 YoY. The difference has been caused by the decrease in ore stacked for heap leaching YoY. Gold production in Q4 2018 reduced by 3.0% YoY.
  • Gold sales reduced by 40.9% in 12m 2018 YoY. The difference mainly resulted from the decrease in production volume and the performance of contractual obligations under the gold loan agreement. In Q4 2018, gold sales reduced by 8.3% YoY.
  • Total ore mined in 12m 2018 reduced by 13.6% YoY. The difference resulted from the decrease in ore production at the bottom level of Yugo-Zapadny pit due to high water inflow and the high degree of water content, as well as the organization of the additional measures for water removal on mining horizons. In Q4 2018, total ore mined increased by 105.0% YoY mainly due to total horizon lowering at Khlebny pit and increment of reserves at ore body No. 3.
  • In 12m 2018, the average stripping ratio increased by 21.6% YoY. The increase was caused by the preparation of working horizons at Yugo-Zapadny pit and expansion of the same for further development. In Q4 2018, the average stripping ratio reduced by 52.2% YoY mainly due to significant reduction of stripping at Yugo-Zapadny pit YoY.
  • The average grade in ore mined in 12m 2018 was in line with 12m 2017. In Q4 2018, the average grade in ore mined reduced by 5.0% YoY.
  • In 12m 2018, total ore stacked for heap leaching reduced by 32.1% YoY, with the average gold ratio in ore stacked being in line with 12m 2017. The reduction of ore stacked for heap leaching mainly resulted from the reduction of ore mined. Ore stacked for heap leaching in Q4 2018 was by 45.8% lower as compared to Q4 2017, and the average gold ratio in ore stacked was in line with Q4 2017.

About Mangazeya Mining Ltd.
Mangazeya Mining Ltd. is a NEX-listed mining and exploration company, focused on the development
mineral resources in the Russian Federation.

Contact:
Anton Grigoryev
Corporate Secretary
Mangazeya Mining Ltd.
a.grigoryev@mangazeya.ru

Caution Concerning Forward-Looking Information
This news release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”) relating, but not limited to, the Company’s expectations, intentions and beliefs, the Company’s financial position, financial alternatives and the Company’s ability to continue operations (including any possible defaults and consequences thereof for the Company). Words such as “may”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate” and similar terminology are used to identify forward-looking statements. Such statements are based on assumptions, estimates, opinions and analysis made by the management of the Company in light of their experience, current conditions and their expectations of future developments as well as other factors which they believe to be reasonable and relevant. Forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties that may cause actual results to vary include but are not limited to: the Company’s ability to obtain additional financing on acceptable terms or at all; the Company’s ability to demonstrate compliance with NEX listing requirements; changes in equity and debt markets; inflation; uncertainties relating to the availability and costs of financing needed to complete exploration, development and production activities; failure to establish estimated mineral resources or mineral reserves (the Company’s mineral resource and mineral reserve figures are estimates and no assurances can be given that the indicated levels of gold will be produced); exploration costs varying significantly from estimates; delays in the exploration and development of, and/or commercial production from, the properties in which the Company has an interest; unexpected geological or hydrological conditions; the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties, including the failure of major mining and/or milling equipment; the ability of the Company to service its existing debt facilities; fluctuations in gold and other commodity prices; the existence of undetected or unregistered interests or claims, whether in contract or in tort, over the property of the Company; success of future exploration and development initiatives; competition; operating performance of facilities; environmental and safety risks, including increased regulatory burdens, seismic activity, weather and other natural phenomena; inability to, or delays in, obtaining necessary permits and approvals from government authorities; risks relating to labour; and other exploration, development and operating risks; changes to and compliance with applicable laws and regulations, including environmental laws; political, economic and other risks arising from the Company’sactivities in Russia; fluctuations in foreign exchange rates; and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.