Leona Aglukkaq Appointed to Board of Directors ; Hope Bay Project on Track for Commissioning Processing Plant at End of 2016
TORONTO, ON--(Marketwired - February 26, 2016) - TMAC Resources Inc. (
Mr. Terry MacGibbon, Executive Chairman stated, "We are very pleased to announce that Ms. Leona Aglukkaq has been appointed to the board of directors effective February 25, 2016. Ms. Aglukkaq is a highly experienced politician and government administrator from the Kitikmeot Region, in what is now the Territory of Nunavut. TMAC's Hope Bay Project is in Ms. Aglukkaq's home region, and as a result, she has a keen understanding of the Hope Bay Project's importance in the economic development of Canada's north. She was first elected as a Member of Parliament in 2008, and in 2009 became the first Inuk in Canadian history to be appointed to Cabinet (as Minister of Health). In addition to her Federal government experience, Ms. Aglukkaq has broad public government exposure, including international diplomatic experience as a Minister of the Arctic Council (2012-2015), a leading intergovernmental forum promoting cooperation, coordination and interaction among the Arctic states, Arctic Indigenous communities and other Arctic inhabitants on common Arctic issues, in particular on issues of sustainable development and environmental protection in the Arctic. In addition, Ms. Aglukkaq has territorial government experience as both an elected official and a public official in the governments of Nunavut and the Northwest Territories, and in Institutions of Public Government (as defined by the Nunavut Land Claims Agreement), as a Member of NIRB."
Dr. Catharine Farrow, Chief Executive Officer of TMAC, stated, "We are pleased with our progress in advancing the Hope Bay Project to production late in 2016. During the fourth quarter, we further de-risked the Hope Bay Project by developing the Tactical Plan that we announced in mid-January. In addition, we commenced full shifts underground at Doris, completed the foundations for the Mill Building and continued our work with Gekko Systems of Australia to execute on the procurement, fabrication and testing of the processing plant for shipment and installation during the third and fourth quarters of 2016. We remain on track and on budget for commissioning the Processing Plant and the stockpiling of almost 100,000 tonnes of high-grade (approximately 15 g/t) ore we anticipate having mined by the end of 2016."
Hope Bay Project
FINANCIAL AND OPERATING RESULTS
Statement of Profit or Loss
The net loss for the year ended December 31, 2015 was $9,565,000, compared with the net loss for the year ended December 31, 2014 of $9,458,000.
Cash and Liquidity
Cash and cash equivalents totalled $44,101,000 at December 31, 2015 compared with $32,044,000 at December 31, 2014.
The opportunity to advance mine development to support sustained operations at 1,000 tonnes per day early in 2017, and to accumulate an ore stockpile sufficient to support Processing Plant ramp up to 2,000 tonnes per day by 2018, has been identified as the optimal way to commence and ramp up production at Doris. The following table sets forth a forecast for the Tactical Plan.
Table 1 : Tactical Plan production metrics. Pre-production period 2015 -- 2016
|Estimated Stockpile -- Dec 31, 2016 (1)|
|Gold (contained ounces)||55,600|
|(1) Estimated stockpile previously brought to surface prior to TMAC by Newmont in 2011 includes 12,700 tonnes of ore containing an estimated 7,600 ounces of gold.|
To achieve this production, mining operations will continue to use contract employees with TMAC owned equipment ramping up from 9.9 metres per day in December 2015 to an average advance rate of 13 metres per day until receipt of the 2016 sealift equipment, whereupon the plan is to increase the rate to 20 metres per day. Development through 2016 is expected to achieve 2,055 metres of ramp and stope access drifts in waste to provide 1,000 tonnes per day of production from Doris. In the fourth quarter of 2015, TMAC completed 877 metres of development in ore and waste.
Figure 1 illustrates the planned development of Doris through 2016, whereas Figure 2 shows the planned development and stoping from 2015 through to the end of 2018.
Processing Plant Engineering & Fabrication
In the fourth quarter of 2015, TMAC participated in factory acceptance testing of the ball mills, agitators and crushers. Assembly of the pressure jigs and reagent skids progressed to completion as well as the motor control centres ("MCCs") and first resin column. The transformers and switch gear for the plant power supply as well as the lighting had been ordered. Fabrication, assembly and fitting of structural frames for the plant equipment was in progress. To facilitate and optimize construction activities and schedules, the Company has arranged to transport the MCC's to site earlier than the 2016 sealift via a C-130 Hercules for placement on the mezzanine during Mill Building construction. Fabrication and procurement of the Processing Plant continues and was 41% complete at December 31, 2015. Gekko is on schedule and on budget for the May 2016 target date for completion with the Processing Plant to be delivered during the 2016 sealift, anticipated to occur mid- to late-August. Planning is in progress for the detailed installation and commissioning schedule for the Processing Plant.
The foundations for the Mill Building are complete. A temporary structure was enclosed and heated by year end to facilitate detailed concrete and steel work in the reclaim end of the Mill Building. The formwork and reinforcements for the large retaining wall footings was also installed as well as hoarding to complete the short walls between the pilasters of the exterior columns. All remaining structural concrete pours are integral to the retaining walls of the reclaim area and will be completed along with that work. An engineering inspection of the retaining wall footings and initial concrete pours was conducted in January and the next phase of construction was initiated. The current plan, weather dependent, is to start erecting the Mill Building in March 2016.
TMAC will be attending the BMO Capital Markets 25th Global Metals & Mining Conference in Hollywood, Florida, USA February 28, 2016 to March 2, 2016. The Company will be at Booth #2500 at the PDAC 2016 International Convention, Trade Show & Investors Exchange March 6 -- 9, 2016 and Booth #2624 March 8 and 9, 2016 at the PDAC 2016 International Convention, Core Shack, Toronto, Ontario, Canada.
ABOUT TMAC RESOURCES
TMAC Resources Inc. holds a 100% interest in the Hope Bay Project located in Nunavut, Canada. TMAC is a fully financed, gold development company. During 2015, TMAC significantly de-risked the Hope Bay Project financially by securing equity and debt financing for gross proceeds of over $350 million providing full funding for the Company to achieve its Path to Production plan, beginning with the Doris Mine, by the end of 2016. The Company has a board of directors with depth of experience and market credibility and an exploration and development team with an extensive track record of developing high grade, profitable underground mines.
SCIENTIFIC AND TECHNICAL INFORMATION
Information of a scientific or technical nature in respect of the Hope Bay Project, other than new information related to Doris mine development, is based upon the technical report for the Hope Bay Project dated May 28, 2015 entitled "Technical Report On The Hope Bay Project, Nunavut, Canada", which has an effective date of March 31, 2015 (the "Hope Bay Technical Report"), as filed on TMAC's profile at www.sedar.com. Scientific and technical information related to Doris mine development was prepared by, and all other scientific and technical information contained in this document was reviewed and approved by David King, P.Geo., the Vice President, Exploration and Geoscience of TMAC, and Paul Christman, P.Eng., the Manager of Mining of TMAC, each of whom is a "qualified person" as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.
This release contains "forward-looking information" within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking information" includes statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, bringing the Hope Bay Project into production, beginning with the timing of the erection and completion of the Mill Building, fabrication, delivery and construction of the Processing Plant, the commissioning of the Processing Plant at Doris by the end of 2016, the availability of funds under the Debt Facility, and that the cash on hand and drawdowns under the Debt Facility will be sufficient to fully fund the Hope Bay Project and the objectives of the exploration program.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made, including among other things, assumptions about: the ability meet the conditions precedent to drawdowns under the Debt Facility; the ability to raise any additional capital needed to advance the development of the Hope Bay Project to production; future prices of gold and other metal prices; the geology of the Hope Bay Project being as described in the Company's PFS technical report for the Hope Bay Project filed on SEDAR; accuracy of the mineral resource and mineral reserve estimates in the PFS; the metallurgical characteristics of the deposit being suitable for the processing plant; the successful and timely delivery, installation and operation of the Processing Plant; favourable weather conditions for planned sealifts and construction activities; production costs being as estimated in the PFS; accuracy of budgeted exploration and development costs and expenditures, including to complete development of the infrastructure at the Hope Bay Project; the price of other commodities such as fuel; future currency exchange rates and interest rates; favourable operating conditions; political and regulatory stability; receipt of governmental approvals and permits and all necessary third party financing on favourable terms; obtaining renewals for existing licences and permits and obtaining all other required licences and permits; sustained labour stability; stability in financial and capital goods markets; availability of equipment; positive relations with the Kitikmeot Inuit Association and Nunavut Tunngavik Inc. and other local groups; and the Company's ability to operate in the harsh northern Canadian climate. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See "Risk Factors" in the Company's AIF dated February 25, 2016 filed on SEDAR at www.sedar.com for a discussion of these risks.
The Company cautions that the foregoing lists of important assumptions and factors are not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking information contained herein. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information.
SOURCE TMAC Resources Inc.
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