VANCOUVER, Aug. 20, 2018 /PRNewswire/ - Alio Gold
Inc (TSX, NYSE AMERICAN: ALO) ("Alio Gold" or the "Company"),
or the "Company"), today reports changes aimed at aligning
capability to focus on its operating mines and reduce overhead
costs. Recently, the Company announced the temporary
suspension of exploration and development work at its Ana Paula
project and a commitment to focus its efforts and capital
allocation on its two operating mines, San Francisco and Florida Canyon. The
Company is aligning its capability to support these efforts.
As a result, Paul Hosford, Vice
President of Project Development, and the Project Manager,
Terry Murphy, will be leaving the
Company on August 31, 2018. The
Company has also taken steps to reduce costs at the Ana Paula
project site in Mexico while
maintaining a level of local employment and community
engagement.
"We would like to thank Paul and his development team for their
efforts in advancing Ana Paula," said Greg
McCunn, Chief Executive Officer. "We have increased
our knowledge of the project greatly over the last year and made
significant improvements to the infrastructure which will make it
simpler to resume work when we are in a position to do so."
In addition, Colette Rustad,
Chief Financial Officer, has left the Company on August 17, 2018.
"Colette was brought on last year to lead the arrangement of
$100 million in debt financing and
put all the financial systems in place to build a mine,"
Greg McCunn added. "We made
excellent progress on those efforts, but the decline in gold price
and the equity capital market conditions are not supportive of
advancing the Ana Paula project at this time. We wish Colette all
the best in her future endeavors."
Ian Harcus, currently Corporate
Controller, has been appointed Vice President Finance and will lead
the finance function for the Company. In conjunction
with this, the Company has also implemented a number of changes at
its corporate office in Vancouver
which in total are expected to reduce the corporate overhead by
approximately $1.2 million over the
next 12 months.
Technical capability is now being aligned under Doug Jones, Chief Operating Officer, as the
Company focuses on the technical review of the San Francisco mining operations in
Sonora, Mexico. The
objective of the review is to improve understanding and mining
operations in the San Francisco
pit aiming at reduced mining dilution and improved grades feeding
the crushing circuit ahead of heap leaching. At Florida
Canyon, the Company has begun implementing new management systems
and processes as part of the integration process.
Joe Campbell, the current General
Manager at San Francisco, will be
moving into the General Manager role at Florida Canyon to lead
these changes. The new life of mine plan and supporting
technical report for Florida Canyon is on track for completion by
the end of this year.
About Alio Gold
Alio Gold is a growth-oriented
gold mining company, focused on exploration, development and
production in Mexico and the
USA. Its principal assets include its 100%-owned and operating
San Francisco Mine in Sonora,
Mexico, its 100%-owned and operating Florida Canyon Mine in
Nevada, USA and its 100%-owned
development stage Ana Paula Project in Guerrero, Mexico. The Company also has a
portfolio of other exploration properties located in Mexico and the USA.
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information contained in this news
release constitute "forward-looking statements" within the meaning
of applicable U.S. securities laws and "forward-looking
information" within the meaning of applicable Canadian securities
laws, which we refer to collectively as "forward-looking
statements". Forward-looking statements are statements and
information regarding possible events, conditions or results of
operations that are based upon assumptions about future economic
conditions and courses of action. All statements and information
other than statements of historical fact may be forward-looking
statements. In some cases, forward-looking statements can be
identified by the use of words such as "seek", "expect",
"anticipate", "budget", "plan", "estimate", "continue", "forecast",
"intend", "believe", "predict", "potential", "target", "may",
"could", "would", "might", "will" and similar words or phrases
(including negative variations) suggesting future outcomes or
statements regarding an outlook.
Forward-looking statements in news release herein by reference
include, but are not limited to statements which relate to future
events. Such statements include estimates, forecasts and statements
with respect to project development risks and estimated future
production and cash costs, future trends, plans, strategies,
objectives and expectations, including with respect to costs,
capital requirements, availability of financing, production,
exploration and reserves and resources, projected production at the
Company's San Francisco Property, Florida Canyon Property and Ana
Paula Project, including estimated internal rate of return and
projected production, exploitation activities and potential, and
future operations, projected operational updates to the Ana Paula
Project, expectations regarding environmental studies at the Ana
Paula Project, expectations regarding permitting at the Ana Paula
Project and expectations regarding the payment of dividends on the
Company's common shares.
Such forward-looking statements are based on a number of
material factors and assumptions, including, but not limited to:
the successful completion of development projects, planned
expansions or other projects within the timelines anticipated and
at anticipated production levels; the accuracy of reserve and
resource, grade, mine life, cash cost, net present value and
internal rate of return estimates and other assumptions,
projections and estimates made in the technical reports for the San
Francisco Property, Florida Canyon Property and the Ana Paula
Project; that mineral resources can be developed as planned;
interest and exchange rates; that required financing and permits
will be obtained; general economic conditions, that labour
disputes, flooding, ground instability, fire, failure of plant,
equipment or processes to operate are as anticipated and other
risks of the mining industry will not be encountered; that
contracted parties provide goods or services in a timely manner;
that there is no material adverse change in the price of gold,
silver or other metals; competitive conditions in the mining
industry; title to mineral properties costs; and changes in laws,
rules and regulations applicable to the Company. Forward- looking
statements involve known and unknown risks, uncertainties and other
factors which may cause actual results, performance or
achievements, or industry results, to differ materially from those
anticipated in such forward-looking statements. The Company
believes the expectations reflected in such forward-looking
statements are reasonable, but no assurance can be given that these
expectations will prove to be correct and you are cautioned not to
place undue reliance on forward-looking statements contained
herein.
Some of the risks and other factors which could cause actual
results to differ materially from those expressed in the forward-
looking statements contained in this news release herein by
reference include, but are not limited to: decreases in the price
of gold; competition with other companies with greater financial
and human resources and technical facilities; risks associated with
doing business in Mexico;
maintaining compliance with governmental regulations and expenses
associated with such compliance; ability to hire, train, deploy and
manage qualified personnel in a timely manner; ability to obtain or
renew required government permits; failure to discover new
reserves, maintain or enhance existing reserves or develop new
operations; risks and hazards associated with exploration and
mining operations; accessibility and reliability of existing local
infrastructure and availability of adequate infrastructures in the
future; environmental regulation; land reclamation requirements;
ownership of, or control over, the properties on which the Company
operates; maintaining existing property rights or obtaining new
rights; inherent uncertainties in the process of estimating mineral
reserves and resources; reported reserves and resources may not
accurately reflect the economic viability of the Company's
properties; uncertainties in estimating future mine production and
related costs; risks associated with expansion and development of
mining properties; currency exchange rate fluctuations; directors'
and officers' conflicts of interest; inability to access additional
capital; problems integrating new acquisitions and other problems
with strategic transactions; legal proceedings; uncertainties
related to the repatriation of funds from foreign subsidiaries; no
dividend payments; volatile share price; negative research reports
or analyst's downgrades and dilution; and other factors contained
in the section entitled "Risks and Uncertainties" per above.
Although the Company has attempted to identify important factors
that could cause actual results or events to differ materially from
those described in the forward-looking statements, you are
cautioned that this list is not exhaustive and there may be other
factors that the Company has not identified. Furthermore, the
Company undertakes no obligation to update or revise any
forward-looking statements included in, or incorporated by
reference in, this news release if these beliefs, estimates and
opinions or other circumstances should change, except as otherwise
required by applicable law.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) nor the New York Stock
Exchange MKT accepts responsibility for the adequacy or accuracy of
this news release.
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SOURCE Alio Gold