October 12, 2021 (ACCESSWIRE via COMTEX) -- VANCOUVER, BC / ACCESSWIRE / October 12, 2021 / FIORE GOLD LTD. /zigman2/quotes/205650839/delayed CA:F -0.67% (otcqb:FIOGF) ("Fiore" or the "Company") is pleased to announce preliminary production results for the Company's fourth fiscal quarter ("Q4") and the full fiscal year 2021 which ended September 30th, 2021, for its Pan open pit mine in White Pine County, Nevada.
Full Year and Q4 Operating Highlights
(all figures in U.S. dollars unless otherwise indicated)
Full-year gold production of 45,397 ounces, achieving the midpoint of our 44,000-47,000 ounces guidance rangeRecord Q4 gold production of 13,527 ouncesFull-year gold sales of 45,341 gold ounces at an average realized price of $1,807 per ounceRecord Q4 sales of 13,506 gold ounces at an average realized price of $1,790 per ounceClosing cash balance of $22.9 million, an increase of $4.4 million from June 30, 2021, and zero corporate debtFull-year mined ore production of 14,047 tons per day at a stripping ratio of 1.5 and grade of 0.45 grams per tonne, or 0.013 ounces per ton; ore tons mined and grade within guidance, strip ratio below the guided 1.8:1Q4 mined ore production of 16,639 tons per day at a stripping ratio 1.5 and grade of 0.41 grams per tonne, or 0.012 ounces per ton388,461 hours worked in the fiscal year 2021 at a Total Recordable Injury Frequency Rate ("TRIFR") of 3.1Pan Mine achieved one million hours worked without a lost time injury in January 2021
Full Year Organic Growth Highlights
At Pan, reported a two year mine life extension, continuing our history of replacing mine depletion through successful explorationAdditionally at Pan, constructed the Phase 3 heap leach pad with first ore placed in July 2021, providing substantial capacity for the added mine lifeAcquired the past-producing Illipah project, extending our Nevada land holdings to a total of 222 square kilometers or 55,000 acresAt Gold Rock, we continued our resource expansion and metallurgical drilling program in support of a Feasibility Study. Given our drill success to date, we recently approved an expanded resource drilling program aimed at continued expansion of the Gold Rock mineral resource. We expect to issue the Feasibility Study during calendar Q4 2022 with production at Gold Rock expected in the second half of 2024.
Tim Warman, Fiore's CEO commented, "Backed by our consistently strong operating performance, we continue to put capital back into our Nevada assets. We have invested in Pan's future, adding two years of mine life and substantial heap leach capacity, and are planning a significant investment in resource expansion drilling at Pan over the next year. At the same time, we have meaningfully advanced Gold Rock with extensive drilling to progress the Feasibility Study. Given our exploration success, we have elected to add approximately 130,000 feet of drilling aimed at continued expansion of the Gold Rock mineral resource. We believe the modest extension to the Feasibility timeline is well justified given the opportunity to grow the resource. Further, we have added a valuable third Nevada asset to our portfolio, the Illipah project. Despite the ongoing investment, our cash balance and share count have remained steady, our working capital has improved, and we remain debt free. Our financial flexibility is allowing us to advance our goal of having Pan and Gold Rock operate in unison."
Gold Rock Update
Work on the Gold Rock Feasibility Study is proceeding well, with several programs underway including:
One core and one RC rig currently on site carrying out geotechnical and condemnation drilling.Three RC rigs expected to arrive onsite in October and November as part of an expanded resource drilling program.Column tests using samples from 15 large-diameter core holes underway at Forte Dynamics in Colorado, with initial results expected in December.Background work and contractor selection proceeding for the various Nevada state permit applications required for Gold Rock. The Federal NEPA permitting process was completed in 2018.
Recent drilling at Gold Rock (PR of March 30, 2021) has identified a zone of higher-grade mineralization beyond the northern end of the known resource area, including:
42.7 m of 1.17 g/t gold in hole GR20-110 north of the planned North Pit18.3 m of 0.99 g/t gold in hole GR21-001 north of the planned North Pit45.7 m of 2.01 g/t gold in hole GR21-002 north of the planned North Pit
Based on these results, Fiore recently approved an expanded resource drilling program to add an additional 130,000 feet (40,000 metres) of RC and HQ core drilling aimed at continued expansion of the Gold Rock mineral resource. The additional drilling was scheduled to begin in June of this year, but a shortage of available drill rigs in Nevada has delayed the start of the program to October when the first of three additional rigs is expected to arrive on site. The opportunity to add higher-grade ounces to the resource as well as the delays in bringing additional rigs to site is expected to extend the completion date for the feasibility study to calendar Q4 of 2022. Despite this delay to the Feasibility Study schedule, the overall project schedule still anticipates first production at Gold Rock in the second half of 2024.
The scientific and technical information relating to Fiore Gold's properties contained in this news release was approved by J. Ross MacLean (MMSA), Fiore Gold's Chief Operating Officer and a "Qualified Person" under National Instrument 43-101.
Our corporate strategy is to grow Fiore Gold into a 150,000 ounce per year gold producer. To achieve this, we intend to:
continue to grow gold production at the Pan Mine, while increasing the resource and reserve baseadvance the development of the nearby Gold Rock projectacquire additional production or near-production assets to complement our existing operations