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
- 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:
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:
- 41.7 gpt gold over 4.4 metres in drill hole YRM-KD-BG-15 at Bagassi South;
- 25.0 gpt gold over 3.8 metres in drill hole YRM-KD-BG-11 at Bagassi South; and
- 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
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
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 Km2 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 securities laws.
SOURCE Roxgold Inc.