Majestic Gold Corp. Provides Corporate Update - March 2014
VANCOUVER, Mar 3, 2014 - Majestic Gold Corp. ("Majestic" or the "Company") (TSX VENTURE:MJS) (FRANKFURT:A0BK1D) is pleased to announce the appointment of Mr. Stephen Kenwood as President and CEO. Mr. Kenwood is a registered member of the Association of Professional Engineers and Geoscientists of British Columbia. He received a Bachelor of Science (Geology) degree from the University of British Columbia. Mr. Kenwood has experience in the area of advanced project development in British Columbia, at the Snip gold project for ComInco Ltd. and at the Eskay Creek deposit for Prime Exploration Ltd. He also worked as a project geologist on the Petaquilla copper gold porphyry project in Panama and has worked on projects in Peru, Chile, and China. Mr. Kenwood has extensive public company experience and is currently a director of several TSX Venture Exchange companies. Mr. Kenwood will be onsite next week to join a North American mining engineer with extensive experience in China who is currently conducting a comprehensive review of the operation at Song Jiagou. It is anticipated that his review will assist the Company in implementing changes to the operation that will result in better grade control in the mine pit resulting in higher grade throughput in the mill.
In the future, overall mine design and planning will be the responsibility of Majestic rather than the contractor, Yantai Dahedong Processing Co. Ltd. Mr. Kenwood will be in meetings to finalize a revised mining and milling agreement that will allow Majestic to direct the mining activity, including the handling of waste material.
The Company also reports the financial and operational results for the first quarter of the 2014 fiscal year, ended December 31, 2013. This release should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and associated management discussion and analysis for the same period that are available on SEDAR (www.sedar.com). The following financial results are expressed in US dollars unless otherwise stated.
2014 First Quarter Overview
- Gold production from the Songjiagou Gold Mine was 4,843 ounces for the three months ended December 31, 2013, compared to 4,617 ounces produced for the comparative period;
- Tonnes of ore milled was 418,629 tonnes for the three months ended December 31, 2013, compared to 456,487 tonnes milled for the comparative period;
- Gold sales revenue for the three months ended December 31, 2013, was $3,653,833 from the sale of 2,894 ounces at an average realized gold price of $1,263 per ounce, compared to revenue of $4,105,581 from the sale of 2,399 ounces at an average realized gold price of $1,755 per ounce for the three months ended December 31, 2012;
- Gross profit was $999,231 for the three months ended December 31, 2013, compared to $2,173,943 for the three months ended December 31, 2012;
- Cash costs were $865 per ounce for the three months ended December 31, 2013, compared to $786 per ounce for the three months ended December 31, 2012.
FINANCIAL INFORMATION
| Three months ended December 31, 2013 | Three months ended December 31, 2012 | ||||||
| Operating data | |||||||
| Gold produced (ozs) | 4,843 | 4,617 | |||||
| Gold realized net of smelting fees (ozs) | 4,531 | 4,313 | |||||
| Gold sold (ozs) | 2,894 | 2,339 | |||||
| Average realized gold price ($/oz sold) | $ | 1,263 | $ | 1,755 | |||
| Total cash costs ($/oz sold) (1) | 865 | 786 | |||||
| Financial data | |||||||
| Total revenues | $ | 3,871,193 | $ | 4,343,956 | |||
| Gross profit (2) | 999,231 | 2,170,013 | |||||
| Net loss attributable to shareholders | (2,139,602 | ) | (97,544 | ) | |||
| Basic and diluted loss per share | (0.00 | ) | (0.00 | ) | |||
| Cash and cash equivalents | 12,366,080 | 16,365,423 | |||||
| Total assets | 103,376,699 | 105,240,500 | |||||
| Total debt | 23,041,096 | 22,547,074 | |||||
| (1) "Total cash costs" are presented on a per ounce sold basis. | |||||||
| (2) "Gross profit" represents total revenues, net of cost of goods sold. | |||||||
| PRODUCTION RESULTS | |||||
| Three months ended December 31, 2013 | Three months ended December 31, 2012 | ||||
| Production data | |||||
| Tonnes mined | 556,015 | 445,353 | |||
| Tonnes milled | 418,629 | 456,487 | |||
| Head grade (g/t) | 0.41 | 0.38 | |||
| Mill recovery | 88 | % | 87 | % | |
| Gold produced (ozs) | 4,843 | 4,617 | |||
| Gold realized, net of smelting fees (ozs) | 4,531 | 4,313 | |||
The geological and technical information contained in this news release has been reviewed and approved by Stephen Kenwood, P.Geo., who is a qualified person under the definitions established by National Instrument 43‐101.
About Majestic Gold
Currently focused solely in China, Majestic Gold Corp. is a Vancouver, BC based company engaged in commercial gold production at the Songjiagou Gold Mine in Yantai, China. The mine is an open pit and underground operation. Additional information on the Company and its projects is available at www.sedar.com and on the Company's website at www.majesticgold.net.
Cautionary Notes
Certain statements contained herein may constitute forward‐looking statements and are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forward‐looking statements are statements which relate to future events. Such statements include estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.
In some cases, you can identify forward‐looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward‐looking statements.
While these forward‐looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Majestic Gold does not intend to update any forward‐looking statements to conform these statements to actual results
Production Disclaimer
The Company's production decision was not based on a feasibility study of mineral reserves demonstrating economic and technical viability. The Company's production decision was made based on the open pit optimization resource model set out in the Preliminary Economic Assessment ("PEA"), which takes into account the relatively low mining costs negotiated by the Company. The pit optimization that was conducted in the preliminary assessment generated a production schedule summary at grade cut-off of 0.30 gram per tonne Au.
The PEA includes the inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will ever be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Contact
Majestic Gold Corp.
James Mackie, Chief Financial Officer & Corporate Secretary
(604) 801-9990
info@majesticgold.net
www.majesticgold.net