True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is
pleased to announce financial results and business highlights for the
three-month period ending March 31, 2014.
FIRST-QUARTER 2014 HIGHLIGHTS AND SUBSEQUENT EVENTS INCLUDE:
-- Permitting:
-- Received the Karma Project exploitation (mining) permit to conduct
mining operations at the initial three deposits. A ground breaking
ceremony was held in May 2014.
-- Project Financing:
-- Closed a public market bought deal financing and concurrent private
placement with Liberty Metals & Mining Holdings, LLC, ("LMM") for
total gross proceeds of $51.9 million (the "Offering"). These
proceeds provide the project equity component required to develop
and construct the Karma Project.
-- Signed an engagement letter giving Barclays Bank PLC and Societe
Generale Corporate & Investment Banking an exclusive mandate to act
as lead arrangers for bank debt financing for the Karma Project.
-- Continued to advance discussions with providers of alternatives or
complements to traditional bank debt project financing including
fleet financing, gold streams and hybrid convertible notes.
-- Project Development:
-- Continued to strengthen our mine-building team in Burkina Faso with
the appointment of several key positions.
-- Completed detailed engineering and design, results of which indicate
a potential for cost savings in a number of important areas.
-- Completed Phase 2 barrage construction ahead of schedule and under
budget. The barrage will provide sufficient water for mine
construction and operational needs, as well as providing a year-
round water source for local communities.
-- Commenced construction activities including upgrading the site
access road and the start of plant site earthworks.
-- Signed a letter of intent to purchase the initial mining fleet for
the development of the Karma Project.
-- Resource Update:
-- Reported a significant new resource north of the Kao deposit ("North
Kao") that adds to Karma's production profile potential with 1.66
million ounces of gold (Inferred Mineral Resource of 47.8 Mt at 1.08
g/t Au) added. This includes in-pit leachable material of 423 kozs
of gold (Inferred Mineral Resource of 16.4 Mt at 0.80 g/t Au),
potentially doubling the leachable material at Karma's largest
deposit (Kao). The updated Karma Project mineral resource, including
North Kao is as follows:
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Category Indicated Inferred
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Mt Au g/t Au koz Mt Au g/t Au koz
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In-Pit (shell-constrained) 75.2 1.08 2,621 65.3 1.13 2,362
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Global Mineral Inventory 82.6 1.04 2,776 80 1.05 2,704
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1. The Mineral Resource estimate is quoted at the same cut-off grades and
economic parameters for the constrained pit optimizations that were used
for mineral resources in the updated Karma Technical Report: 0.20 grams
per tonne ("g/t") gold ("Au") for Oxide, 0.22 g/t Au for Transition and
0.5 g/t Au for Sulphide, and a gold price of US$1,557/oz (refer to NI
43-101 technical report titled "Technical Report and Updated Resource
Estimate on the Karma Gold Project, Burkina Faso, West Africa", dated
March 13, 2014 and filed on SEDAR on April 28, 2014).
2. Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant issues.
3. The quantity and grade of reported Inferred mineral resources in this
estimation are uncertain in nature and there has been insufficient
exploration to define these Inferred mineral resources as an Indicated
or Measured mineral resource and it is uncertain if further exploration
will result in upgrading them to an Indicated or Measured mineral
resource category.
4. The mineral resources in this MD&A were estimated using the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on
Mineral Resources and Reserves, Definitions and Guidelines prepared by
the CIM Standing Committee on Reserve Definitions and adopted by CIM
Council.
-- Commenced a Preliminary Economic Assessment ("PEA") on the new
inferred resource to evaluate the potential economic impact of an
increased production profile or an extension of the mine life as
laid out in the Karma Feasibility Study ("Karma FS"). The PEA is
anticipated to be completed by July 2014.
Exploration
-- Commenced a 15,000 metre drill program at key exploration targets at the
Karma Gold Project. The program is designed to discover new domains of
open-pit, leachable material that could ultimately be incorporated into
the current feasibility mine plan for potential throughput increases or
mine life extensions.
-- Reported positive drilling results at priority targets that expand and
demonstrate continuity of gold mineralization and the potential to add
more near-surface leachable material within the Karma Project.
SELECTED FINANCIAL DATA
The following selected financial data is derived from the unaudited condensed
interim consolidated financial statements and related notes thereto for the
periods indicated, as prepared in accordance with International Financial
Reporting Standards. Details of these results are described in the unaudited
condensed interim consolidated financial statements and Management's Discussion
and Analysis for the three months ended March 31, 2014. These documents can be
found on the Company's website (www.truegold.com) or on SEDAR at www.sedar.com.
All amounts are presented in Canadian dollars unless otherwise stated.
Three months ended
March 31, 2014 March 31, 2013
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Net loss for the period $ (4,302,556) $ (5,572,447)
Comprehensive loss for the period $ (4,335,327) $ (5,875,157)
Loss per share - basic and diluted $ (0.01) $ (0.03)
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As at
March 31 December 31
2014 2013
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Cash and short term investments $ 65,641,507 $ 24,014,411
Working capital $ 63,009,255 $ 21,189,672
Total assets $ 87,842,649 $ 42,758,028
Current liabilities $ 2,932,883 $ 3,162,074
Non-current liabilities $ nil $ nil
Shareholders' equity $ 84,909,766 $ 39,595,954
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For the three months ended March 31, 2014, the net loss for the period was $4.3
million or $0.01 per share, compared to a loss of $5.6 million or $0.03 per
share for the same period in the prior year. Operating expenses totalled $4.8
million for the three months ended March 31, 2014 down 14% from $5.5 million a
year earlier. The principle reason for the decrease was lower exploration and
evaluation expenditures of $1.8 million (as compared to $3.1 in the comparative
period) as the Company has begun pre-development work on the Karma Project. The
Company has commenced capitalizing costs related to pre-development in the
current period. Decreases in professional fees also contributed to the decrease
in operating expenses. An increase in office and general expenses offset the
comparative decrease in operating expenses.
Total assets as at March 31, 2014 have increased since December 31, 2013 by
$45.0 million to $87.8 million, mainly due to (i) to an increase in cash and
short term investments reflecting cash inflows from financing transactions
through the three months ended March 31, 2014; and (ii) the capitalization of
pre-development costs related to the Karma Project. This increase was partially
offset by cash outflows from operations.
Scott Heffernan, M.Sc., P.Geo., Vice President Exploration of the Company, and
Peter C. Carter, P. Eng., Chief Operating Officer and Vice President Engineering
of the Company, are the designated Qualified Persons within the meaning of NI
43-101 for this news release. They have reviewed and verified that the
scientific and technical information contained in this release is accurate and
approves of the written disclosure of same.
About True Gold
True Gold Mining Inc. is where gold comes to life. We are committed to growing a
successful gold exploration, development and production company, by focusing on
projects with low costs, low technical risks and solid economics. The Company's
board, management and technical teams have proven track records in gold
exploration, development, operations and production worldwide.
Additional information about the Company and its activities may be found on the
Company's website at www.truegoldmining.com and under the Company's profile at
www.sedar.com.
ON BEHALF OF THE BOARD
Dwayne Melrose, President & CEO
Neither 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.
Unless stated otherwise, information of a scientific or technical nature in this
press release regarding the Karma Project is summarized, derived or extracted
from the technical report entitled "Updated Resource Estimate on the Karma Gold
Project, Burkina Faso, West Africa", dated March 13, 2014 prepared by P&E Mining
Consultants Inc.,and filed on SEDAR on April 28, 2014.
Mineral resources which are not mineral reserves do not have demonstrated
economic viability. The estimate of mineral resources may be materially affected
by environmental, permitting, legal, title, taxation, sociopolitical, marketing,
or other relevant issues.
The quantity and grade of reported Inferred mineral resources in this estimation
are uncertain in nature and there has been insufficient exploration to define
these Inferred mineral resources as an Indicated or Measured mineral resource
and it is uncertain if further exploration will result in upgrading them to an
Indicated or Measured mineral resource category.
The mineral resources were estimated using the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves,
Definitions and Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council.
All statements in this press release, other than statements of historical fact,
are "forward-looking information" with respect to True Gold within the meaning
of applicable securities laws, including statements with respect to the
potential quantity and/or grade of minerals, potential size and expansion of a
mineralized zone, proposed timing of exploration and development plans.
Forward-looking information is often, but not always, identified by the use of
words such as "seek", "anticipate", "plan", "continue", "planned", "expect",
"project", "predict", "potential", "targeting", "intends", "believe",
"potential", and similar expressions, or describes a "goal", or variation of
such words and phrases or state that certain actions, events or results "may",
"should", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking information is not a guarantee of future performance and is
based upon a number of estimates and assumptions of management at the date the
statements are made including, among others, assumptions about future prices of
gold, copper, silver and other metal prices, currency exchange rates and
interest rates, favourable operating conditions, political stability, obtaining
governmental approvals and financing on time, obtaining renewals for existing
licences and permits and obtaining required licences and permits, labour
stability, stability in market conditions, availability of equipment, accuracy
of any mineral resources, successful resolution of disputes and anticipated
costs and expenditures. Many assumptions are based on factors and events that
are not within the control of Pilot Gold and there is no assurance they will
prove to be correct.
Such forward-looking information, involves known and unknown risks, which may
cause the actual results to be materially different from any future results
expressed or implied by such forward-looking information, including but not
limited to, risks related to the interpretation of results at the Karma Project,
reliance on technical information provided by third parties as related to the
Karma Project; changes in project parameters as plans continue to be refined;
current economic conditions; future prices of commodities; possible variations
in grade or recovery rates; the costs and timing of the development of new
deposits; failure of equipment or processes to operate as anticipated; the
failure of contracted parties to perform; the timing and success of exploration
activities generally; satisfaction of Burkina Faso requirements relating to the
periodic submissions of Environmental Impact Assessments; possible claims
against the Company or its joint venture partners; labour disputes and other
risks of the mining industry; delays in obtaining governmental approvals,
financing or in the completion of exploration, uncertainties relating to the
interpretation of drill results and the estimation of mineral resources, the
geology, grade and continuity of mineral deposits, accidents, equipment
breakdowns, risk of undiscovered, title defects and surface access, the
potential for delays in exploration and permitting activities, the potential for
unexpected costs and expenses, commodity price fluctuations, currency
fluctuations, political risk
as well as those factors discussed in the Annual Information Form of the
Company dated April 30, 2014 in the section entitled "Risk Factors", under True
Gold's SEDAR profile at www.sedar.com.
Although True Gold has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those described in
forward-looking information, there may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate as actual results
and future events could differ materially from those anticipated in such
statements. True Gold disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new information, future
events or otherwise unless required by law.
Cautionary Note to United States Investors Concerning Estimates of Measured,
Indicated and Inferred Resources Mineral resources that are not mineral reserves
do not have demonstrated economic viability. Mineral resource estimates do not
account for mineability, selectivity, mining loss and dilution. There is also no
certainty that these inferred mineral resources will be converted to measured
and indicated categories through further drilling, or into mineral reserves,
once economic considerations are applied. The mineral resource estimates
referenced in this press release use the terms "Indicated Mineral Resources" and
"Inferred Mineral Resources". While these terms are defined in and required by
Canadian regulations (under NI 43-101), these terms are not recognized by the
U.S. Securities and Exchange Commission ("SEC"). "Inferred Mineral Resources"
have a great amount of uncertainty as to their existence, and great uncertainty
as to their economic and legal feasibility. The SEC normally only permits
issuers to report mineralization that does not constitute SEC Industry Guide 7
compliant "reserves" as in-place tonnage and grade without reference to unit
measures. U.S. investors are cautioned not to assume that any part or all of
mineral deposits in these categories will ever be converted into reserves. True
Gold is not an SEC registered company.
FOR FURTHER INFORMATION PLEASE CONTACT:
Vancouver Office:
604-801-5020
info@truegoldmining.com
Investor inquiries:
Blaine Monaghan
604-801-5020
bmonaghan@truegoldmining.com
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