Pre-Merger Gold-Ore News Releases
|March 01, 2011|
Gold-Ore Announces Earnings of C$6.7 million in 2010
|Vancouver, BC, Canada - Gold--Ore Resources Ltd. announces that it has released its financial results for the year ended November 30, 2010. The Company's audited consolidated financial statements and management's discussion and analysis for the year ended November 30, 2010 are available at www.sedar.com and on the Company's website at www.goldore.ca. These statements reflect the results of operations at Gold-Ore's 100%-owned Bjorkdal Gold Mine in Sweden. |
2010 Year End Highlights (Canadian dollars unless stated otherwise)
Cash costs per ounce are a non-GAAP measure reported in US dollars to provide a basis of comparison with other gold producing companies. During the Company's 2010 fiscal year, the US dollar decreased in value relative to the Swedish krona. This currency movement caused an increase in the reported cash cost per ounce of gold sold of US $51 in the year. The US dollar continued to weaken in the first quarter of 2011.
Over the last few quarters the Company has reported on cost reduction measures being implemented at the mine. The most significant cost related re-structuring in 2010 took place in the underground unit of the mine where a new mining contractor was engaged. This measure is projected to save the Company approximately C$3.0 million annually, which equates to a US$60 per ounce reduction in cash costs at the current exchange rate. The change in contractor took place late in 2010 and the economic benefits will not be seen until the first quarter, 2011. As of February, 2011, the contractor is operating at 100% capacity.
Another cost reduction measure involved the purchase of several pieces of heavy machinery that will enable the Company to conduct some of the underground mining in-house. A stoping drill was delivered in February and will start producing tonnage in March. This measure is anticipated to save an additional C$1.5 million annually which is approximately U$30 per ounce produced. These savings will be reflected in the second quarter, 2011. At full capacity this drill will provide 15% of tonnes mined at Bjorkdal.
Gold-Ore Resources is a gold mining and exploration company focused in the Skelleftea mining district in northern Sweden. The Company's primary asset is the Bjorkdal Gold Mine, which is cash flow positive and unhedged. In addition to Bjorkdal, the Company also has other assets in the district, including the mineral rights to approximately 66 square kilometres surrounding the mine site, as well as the Norrliden Polymetallic Deposit.
For more information please contact the Company 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.goldore.ca
ON BEHALF OF THE BOARD
Glen Dickson, Chairman
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: Tue Mar 15, 2011, Gold-Ore Announces First Quarter Gold Production and 2011 Production Guidance
You can view the Previous Pre-Merger Gold-Ore News Releases item: Tue Jan 18, 2011, Gold-Ore Reports Significant Gold Resource Increase at Bjorkdal Gold Mine
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