Trek Mining Releases Second Quarter Results
VANCOUVER, British Columbia, Aug.28, 2017(GLOBE NEWSWIRE) -- Trek Mining Inc. (TSX-V:TREK) ("Trek Mining" or "the Company") is pleased to announce that its financial results for the second quarter ended June 30, 2017 and the accompanying Management's Discussion and Analysis are available for download on the Company's website at www.trekmining.com and at www.sedar.com. All dollar amounts are in United States dollars.
Quarterly highlights and recent developments
- Completed a feasibility study for the Aurizona Gold Mine ("Aurizona") in Brazil, supporting the viability of constructing an open-pit gold mine with a net present value ("NPV5%") of $197 million and an internal rate of return ("IRR") of 34% based on a gold price of $1,250 per ounce
- Awarded the EPCM contract for development of Aurizona to Ausenco Engineering Canada Inc.
- Confirmed with exploration drilling that gold mineralization at Aurizona's principal ore deposit extends at least 350 metres to the west along strike and also at depth below the existing reserve pit
- Continued ramp-up of the Koricancha Mill in Peru with Q2-2017 sales of 2,545 ounces of gold
On July 31, 2017, the Company released the results of a feasibility study for Aurizona, which is based on a new mine plan and mineral reserve estimate and outlines the design of an open-pit gold mine producing an average of 136,000 ounces of gold per year, with an initial 6.5-year mine life and an NPV5% of $197 million and IRR of 34% based on a gold price of $1,250 per ounce ($254 million and 42% at $1,350 per ounce gold price, respectively). The Company is working to arrange project construction financing and has commenced early works activities in preparation for full-scale construction in the second half of 2017, with the objective of pouring gold at Aurizona by year-end 2018.
Concurrent with development, exploration is underway at Aurizona with the objective of identifying additional gold mineralization that can extend the mine life. Results from 6,839 metres drilled at Piaba West have successfully demonstrated that significant gold mineralization continues below and up to 350 metres along strike of the Piaba gold deposit reserve pit. The Company expects to complete 30,000 metres of drilling in 2017 focused on near-mine targets and targets located along strike from existing reserves.
Gradual production ramp-up at the Koricancha Mill continues, with 2,545 ounces of gold sold in Q2-2017. The Company is implementing a number of strategies to expand its customer base and bring additional mineralized feed to the mill, including the recent commissioning of a feed-receiving depot in northern Peru.
At June 30, 2017, the Company had $74.2 million in cash and marketable securities, comprising $68.7 million in cash and cash equivalents and $5.5 million in available-for-sale investments, and no cash debt, with a working capital balance of $66.0 million.
On behalf of the Board of Trek Mining Inc.
"Christian Milau"
CEO & Director
About Trek Mining Inc.
Trek Mining is a Canadian mining company with a portfolio of production, near-production and exploration-stage projects in North and South America. The Company is producing gold from its Koricancha Mill, a custom-built gold and silver ore processing facility in Peru, and expects to commence construction in the second half of 2017 at its past-producing Aurizona Gold Mine in Brazil with the objective of pouring gold at Aurizona by the end of 2018. Trek Mining's exploration properties include both near-mine and district exploration opportunities at Aurizona; the Warintza porphyry copper-molybdenum exploration project in Southeastern Ecuador; the Ricardo porphyry copper-molybdenum exploration project in Chile; and Elk Gold, a past-producing high-grade gold mine in British Columbia, Canada. Further information about Trek Mining's business strategy and portfolio of assets is available at www.trekmining.com or by email at ir@trekmining.com.
Trek Mining Contacts
Christian Milau, Chief Executive Officer
Rhylin Bailie, Vice President Investor Relations
Tel: +1 604-558-0560
Email: ir@trekmining.com
Technical Information
Scott Heffernan, M.Sc., P.Geo., the Company's EVP Exploration, is a Qualified Person under National Instrument 43-101 and has approved the technical and scientific disclosure throughout this news release.
Cautionary Notes
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of the words "will", "expects", "hopes", "objective", "working", "expected", "expectation" and similar expressions are intended to identify forward-looking statements. Forward-looking statements contained in this press release include statements regarding planned exploration activities and results at Aurizona, and the anticipated restart of production at Aurizona. Although Trek believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since Trek can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in Trek's periodic filings with Canadian securities regulators, and assumptions made with regard to: the anticipated results of the feasibility study for Aurizona; the anticipated Board of Directors decision to approve construction of Aurizona; the ability to raise the capital required to fund construction and development of Aurizona; the ability to restart production at Aurizona; timing of the anticipated restart of production; and the Company's ability to resume exploration activities at the Warintza Project. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Trek does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.