Roxgold reports financial results for period ended June 30, 2013
TORONTO, Aug. 26, 2013 /PRNewswire/ – Roxgold Inc. (“Roxgold” or “the Company”)
(TSXV: ROG) wishes to announce the Company’s unaudited financial
results for the three and six months ended June 30, 2013. For complete
details of the unaudited Condensed Interim Consolidated Financial
Statements and associated Management’s Discussion and Analysis for the
periods ended June 30, 2013, please see the Company’s filings on SEDAR
(www.sedar.com) or on the Company’s web site (www.roxgold.com).
-- Expenditures on Roxgold's flagship Yaramoko exploration property totalled $5.1 million during the three months and over $9.2 million during the six months ended June 30, 2013. -- At June 30, 2013, Roxgold maintained its strong financial position with over $9.1 million in cash and short term investments and over $7.2 million in working capital. Subsequent to the end of the quarter the Company raised gross proceeds of $10.25 million through a private placement. -- Net losses for the three and six months ended June 30, 2013 were $1,175,748 and $1,857,351.
SECOND QUARTER CORPORATE AND OPERATING HIGHLIGHTS
-- The Company conducted regional exploration drilling at Bagassi South and the 300 Zone and completed a 1 square kilometre Induced Polarization orientation survey over the 55 Zone at Yaramoko (news release dated April 8, 2013). Highlights included: o 141.4 grams per tonne ("gpt") gold over 2.0 metres (core length) in RC hole YRM-12-RC-154 at Bagassi South. -- Roxgold completed 5 metallurgical test drill holes at the 55 Zone (news release dated May 2, 2013). By drilling down-dip the Company was able to test grade continuity in a previously drilled portion of the 55 Zone and provide indicative material to be used in further metallurgical test work. -- The Company reported the results from 14 infill diamond drill holes on the 55 Zone (news release dated May 7, 2013). These drill holes were designed to further test mineralization between 400 and 800 metres from surface. -- On May 22, 2013, Roxgold received a three-year extension to its 100% owned Yaramoko exploration permit. The Yaramoko permit is now valid until September 8, 2016. -- Roxgold completed infill diamond drilling on the 55 Zone (news release dated July 3, 2013). In total, the infill drill program at the 55 Zone consisted 20,420 metres of diamond drilling in 42 holes. -- The Company drill tested several regional targets on the Yaramoko permit. During the first half of 2013 drilling focused on six targets: the 109 Hill, Bagassi South, Haho, the 55 Zone West, the 117 Zone and the 300 Zone (see news release dated July 9, 2013). In total 25 reverse circulation ("RC") and 39 diamond holes were completed on regional targets outside the 55 Zone. Highlights included: o 41.7 gpt gold over 4.4 metres in drill hole YRM-KD-BG-15 at Bagassi South; o 25.0 gpt gold over 3.8 metres in drill hole YRM-KD-BG-11 at Bagassi South; and o 16.0 gpt gold over 1.0 metres within a wider intercept of 3.1 gpt over 10.2 metres in drill hole YRM-KD-BG-10 at Bagassi South.
SIGNIFICANT EVENTS SUBSEQUENT TO JUNE 30, 2013
-- On August 1, 2013, pursuant to a bought deal private placement Roxgold issued 25,625,000 common shares at a price of $0.40 per share and received gross proceeds of $10,250,000.
WORK PLANNED FOR THE REMAINDER OF 2013:
-- Completion of a Preliminary Economic Assessment on the 55 Zone and continued work on environmental and social studies.
-- Additional metallurgical and geotechnical drilling on or around the 55 Zone. -- Further studies to support the economic viability of 55 Zone in advance of a potential production decision. -- Complete an Environmental and Social Impact Assessment ahead of an application for an exploitation permit covering part of the Yaramoko property. -- Systematic mapping and sampling of artisanal mining sites throughout the Yaramoko permit area. -- Further ground geophysical surveys to follow up on existing data. -- Further diamond drilling on the highly prospective Bagassi South (see news release dated July 9, 2013) exploration target.
SELECTED FINANCIAL DATA
As at June 30, 2013, the Company had current assets of $9,963,899 and
net working capital of $7,234,878. Roxgold’s net loss for the three
and six months ended June 30, 2013 was $1,175,748 and $1,857,351
respectively (July 31, 2012: $1,017,425 and $6,043,119 respectively).
The decrease in the net loss for the current six month period was
primarily due to a decrease in share-based payments and share units of
$4,773,245 compared to the comparative period. The primary use of cash
during the three months and six ended June 30, 2013 was exploration and
evaluation expenditures totaling $2,885,516 and $7,228,498.
Pierre Desautels, P.Geo, of AGP Mining Consultants Inc., a Qualified
Person within the meaning of National Instrument 43-101 who is an
independent consultant to the Company, has verified and approved the
technical data disclosed in this release. This includes the sampling,
analytical and test data underlying the information. All intercepts
are reported as core length and may not represent true thickness.
Roxgold is an exploration and development company with its key asset,
the 167 Km(2) Yaramoko exploration permit, located in the Houndé greenstone belt of
Burkina Faso, West Africa. Roxgold is focused on further exploring the
Company’s 100% owned Yaramoko permit and advancing the 55 Zone.
ON BEHALF OF ROXGOLD INC.
Chief Financial Officer
“Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.”
This news release may contain forward-looking statements. These
statements are based on information currently available to the Company
and the Company provides no assurance that actual results will meet
management’s expectations. Forward-looking statements include estimates
and statements that describe the Company’s future plans, objectives or
goals, including words to the effect that the Company or management
expects a stated condition or result to occur. Forward-looking
statements may be identified by such terms as “anticipates”,
“believes”, “could”, “estimates”, “expects”, “may”, “shall”, “will”, or
“would”. Since forward-looking statements are based on assumptions and
address future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results relating to such
future events and conditions could differ materially from those
currently anticipated in such statements for many reasons such as:
changes in management, changes in general economic conditions and
conditions in the financial markets; litigation, legislative,
environmental and other judicial, regulatory, political and competitive
developments; and other matters discussed in this news release. This
list is not exhaustive of the factors that may affect any of the
Company’s forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on the
Company’s forward-looking statements. The Company does not undertake to
update any forward-looking statement that may be made from time to time
by the Company or on its behalf, except in accordance with applicable
SOURCE Roxgold Inc.