Rio Alto Mining Limited Reports Assay Results from 29 Reverse Circulation Drill Holes
Sep 29 14
Rio Alto Mining Limited reported the assay results from 29 reverse circulation drill holes drilled between May and August 2014 within and around the Calaorco Pit at the Company's La Arena Gold Oxide Mine located in La Libertad, northern Peru. The Calaorco Pit is the primary source of Rio Alto's current gold production. These results are in addition to the results from 19 RC drill holes. The 2014 phase of oxide drilling in and around the Calaorco Pit is now completed and comprised of 48 RC drill holes for a total of 12,119 metres drilled. Reference is made to the 2014 oxide gold Reserve Pit which is detailed in the La Arena Project Technical Report with an effective date of December 31, 2013, prepared on behalf of the Company by Mining Plus Peru S.A.C. The more significant intercepts of the latest 29 RC drill holes are: CA-R14-022 - 168 m @ 0.38 g/t Au, of which 14 m @ 1.54 g/t Au being Outside the 2014 Reserve Pit. CA-R14-48 - 156 m @ 0.54 g/t Au, of which 30 m @ 1.54 g/t Au being Outside the 2014 Reserve Pit. In addition, 27 out of the 29 drill holes intersected gold mineralization at grades above the current mining cut-off grade. Of the total 48 RC drill holes completed during 2014, 10 RC drill holes ended in oxide mineralization, namely: CA-R14-007 (16 m @ 1.28 g/t Au); CA-R14-016 (16 m @ 1.38 g/t Au); CA-R14-019 (18 m @ 0.32 g/t Au); CA-R14-023 (20 m @ 0.48 g/t Au); CA-R14-025 (42 m @ 0.76 g/t Au); CA-R14-027 (10 m @ 0.41 g/t Au); CA-R14-034 (12 m @ 1.83 g/t Au); CA-R14-038 (46 m @ 0.65 g/t Au); CA-R14-040 (76 m @ 1.06 g/t Au); and CA-R14-043 (34 m @ 0.81 g/t Au). Oxide mineralization within and around the Calaorco Pit is still open, and exhibiting strong gold grades, in three directions: to the west, to the north and at depth. These target areas will be further tested by a RC drill program currently being planned for 2015. The results of the 2014 oxide drilling program demonstrate that a large amount of oxide brecciated sandstone mineralization (the main mineral type at La Arena) lies outside the 2014 Reserve Pit. The results are very encouraging and indicate the potential to increase oxide gold resources and reserves and extending mine life. Updated resource and reserve modeling for the gold oxide mineralization at La Arena is currently underway. Management expects that this drilling program has the potential to allow positive changes to be made to the resource block classification, define new resource blocks and given that the deposit is open to the north, west and at depth, identify new areas to test in order to further increase resources and reserves in the future. The updated resource and reserve estimate for the gold oxide mineralization at La Arena is expected to be released in first quarter of 2015. Sampling of the reverse circulation drilling and sample preparation were performed by Rio Alto personnel and were carried out under strict protocols recommended in the NI 43-101 Technical Report dated July 31, 2010 prepared by Coffey Mining Pty Ltd. for the Company. Samples were taken every 2m and split in half to yield seven to ten kilogram samples. Drill sample recovery was generally in excess of 90%. Rio Alto has a rigorous QA/QC program over the chain-of-custody of samples and the insertion of blanks, duplicates, and certified reference standards in each batch of samples. Samples were shipped to CERTIMIN in Lima where they were dried, crushed, pulverized, and assayed. All gold assays were obtained by standard 50g fire assaying with AA finish.
Rio Alto Mining Provides Production Guidance for the Year 2014
Aug 14 14
Rio Alto Mining provided production guidance for the year 2014. For the year, the company expects gold production of 200,000 ounces to 220,000 ounces. Shahuindo is projected to start producing 85,000 oz/y gold at a $550/ounces cash cost by early 2016. The company also plans to complete a study for an 18,000t/d, $300 million copper-gold operation at La Arena by the end of the year, including a 14,200 meters drill program.
Rio Alto Mining Limited Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014 and Production Results for the Second Quarter Ended June 30, 2014
Aug 14 14
Rio Alto Mining Limited announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported sales of $67,295,000 against $63,859,000 a year ago. Income before income taxes was $24,282,000 against $9,222,000 a year ago. Net income was $15,150,000 or $0.09 basic and diluted per share against net loss of $3,229,000 or $0.02 basic and diluted per share a year ago. Net cash provided by operating activities was $22,420,000 against net cash used in operating activities of $7,181,000 a year ago. Mineral property expenditures were $1,030,000 against $4,723,000 a year ago. Purchase of plant and equipment was $11,106,000 against $12,141,000 a year ago.
For the six months ended, the company reported sales of $132,383,000 against $122,019,000 a year ago. Income before income taxes was $44,258,000 against $24,320,000 a year ago. Net income was $27,059,000 or $0.15 basic and diluted per share against $4,855,000 or $0.03 basic and diluted per share a year ago. Net cash provided by operating activities was $40,778,000 against $21,788,000 a year ago. Mineral property expenditures were $2,514,000 against $9,725,000 a year ago. Purchase of plant and equipment was $21,424,000 against $26,059,000 a year ago.
For the quarter, the company produced gold of 54,517 ounces, of which 50,830 ounces were sold at an average realized price of $1,276 per ounce. The remaining ounces were delivered to Red Kite under the company's Gold Prepayment Agreement.