Pre-Merger Gold-Ore News Releases
|August 13, 2010|
Gold-Ore Provides Update On Underground Mining At Bjorkdal
|Vancouver, BC Canada - Gold--Ore Resources Ltd. (the "Company") reports that, as a result of cost cutting initiatives at the Company's Bjorkdal gold mine in Sweden, a new contractor has been selected for the underground drift mining at the mine. The Company elected to replace the current contractor after requesting and receiving several competitive bids for the contract. It is anticipated that this change, along with other initiatives, will help to significantly reduce cash costs at the operation going forward. |
Bergteamet AB, the current contractor has given notice that they will be leaving the site by the end of the month. The new contractor will begin mobilizing to site early in September and will be at full production within the fourth quarter. Underground mining as a result will temporarily be interrupted, however, mining in the open pit will continue on schedule. The plant will continue to operate at full capacity of 3,200 tonnes per day by supplementing open pit material with feed from stockpiles. Gold production during the fourth quarter is expected to be reduced from previous quarters as a result of lower grades in the stockpiled material however production is still expected to exceed 8,000 ounces. The financial impact of lower revenues during the quarter will be offset by the significantly lower costs associated with processing stockpile material; the margins per tonne of feed processed from the two sources, underground and stockpile, are comparable. Gold production for the year 2010 is forecasted to exceed 40,000 ounces.
In the new business model for underground mining at Bjorkdal, the Company also plans to assume responsibility for several other services supplied by the previous mining contractor, including underground mine services, trucking (to be supplied by an independent contractor), shotcreting and stoping. Orders have now been placed for several pieces of underground mining equipment. Larger items will be on a lease-purchase basis.
"This is a necessary adjustment to our Bjorkdal operation as we continue to extend the life of the mine", states Gold-Ore's Chairman Glen Dickson. "We expect that making the change to more of an owner-operator business model for the underground mining will help us to achieve our goal of reducing cash costs at Bjorkdal. I would like to thank Bergteamet AB for the contribution they made to establishing underground mining at the Bjorkdal mine and wish them continued success."
Gold-Ore Resources is a gold mining and exploration company currently focused in the Skelleftea mining district in northern Sweden. The Company's primary asset is the Bjorkdal Mine, which is cash flow positive, debt-free and unhedged. In addition to Bjorkdal, the Company also has other assets in the district including the mineral rights to 66 square kilometres around the mine site, where an exploration program is now in progress, as well as the Norrliden Polymetallic Deposit
For more information please contact Glen Dickson, Bob Wasylyshyn or Ron Ewing at (604) 687-8884 or Troy Winsor at 1-800-663-8072. Bjorkdal property information is posted on the Company's web site at www.goldoreresources.com
ON BEHALF OF THE BOARD
The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
You can view the Next Pre-Merger Gold-Ore News Releases item: Thu Sep 2, 2010, Gold-Ore Announces Bjorkdal Gold Production Milestone
You can view the Previous Pre-Merger Gold-Ore News Releases item: Wed Jul 28, 2010, Gold-Ore Commences Surface Exploration Drilling
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