Fiore Gold posts lower production in December quarter
(Kitco News) - Fiore Gold (TSXV: F) announced today its preliminary production results for the company’s fiscal first quarter (quarter ending December 31, 2020) from its Pan open pit mine in White Pine County, Nevada.
The company said that its Q1 gold production was 9,204 ounces, reflecting “guided lower production” in first half of fiscal 2021.
Gold sales were 9,210 ounces at an average realized price of $1,868 per ounce.
Fiore added that closing cash balance was $19.2 million at December 31, 2020, a “reduction in cash” from September 30, 2020 as the company invests in the expansion of the Pan heap leach pad to accommodate added mine life, and in on-going drilling and feasibility study activities to advance Gold Rock project.
The company explained that lower gold production in Q1 was due to “fewer ore tons placed, lower ore grade and timing of gold recovery”.
Gold extraction on the leach pad was also temporarily impacted by a drop in the pH and alkalinity of the leach solution.
CEO Tim Warman commented, “As guided, 2021 will be a year of significant reinvestment to support the longevity of the Pan mine and to continue advancing the Gold Rock project. We recently announced a two-year mine life extension at Pan, and we are immediately investing in expanding the heap leach capacity to support this extension. Per our operating plan, gold production is weighted to the second half of 2021 as grades increase through the year and planned recoveries are realized. We look forward to returning to higher production levels as the year progresses. At Gold Rock, we continued with our resource expansion drilling and related feasibility study work. We are pleased with initial drill results as they continue to expand the oxide mineralization at Gold Rock.”