Stock Symbol: SGF: TSX
SASKATOON, May 3, 2017 /CNW/ - Shore Gold Inc. ("Shore"
or the "Company") reports that the unaudited results of Shore's
operations for the quarter ended March 31,
2017 will be filed today on SEDAR and may be viewed at
www.sedar.com once posted. A summary of key financial and operating
results for the quarter is as follows:
Overview
The Company's Star – Orion South Diamond
Project ("Project") is situated in the Fort à la Corne kimberlite
field in central Saskatchewan. The
Project includes the 100 percent Shore owned Star Diamond Project,
as well as Star West and the Orion
South Kimberlite, which fall within the adjacent Fort à la
Corne Joint Venture ("FALC-JV").
Shore has a 69 percent interest in the FALC-JV and Newmont Canada
FN Holdings ULC ("Newmont") has a 31 percent interest.
Shore recently announced that it has successfully completed
significant aspects of test work towards an updated feasibility
study on the Project (See SGF News Release dated March 6, 2017). The work completed in recent
months includes: X-ray Transmission ("XRT") recovery of diamonds
from Star pyroclastic kimberlite, ore processing data review,
diamond parcel characterization, kimberlite particle size analysis
and overburden removal investigations. These programs investigate
the use of new technology for the efficient excavation of the open
pit and improvements to the flow-sheet of the diamond processing
plant, while simultaneously reducing pre-production capital costs
and the time to initial diamond production.
Results
For the quarter ended March 31, 2017, the Company recorded a net loss
of $0.9 million or $0.00 per share compared to a net loss of
$1.4 million or $0.01 per share for the same period in 2016. The
losses during these quarters were due to operating costs and
exploration and evaluation expenditures incurred by the Company
exceeding interest income earned on cash and cash equivalents and
short-term investments. Losses during the three months ended
March 31, 2017 were lower than the
same period in the previous year primarily due to higher
expenditures that were incurred in the quarter ended March 31, 2016 relating to the 2016 drilling
program. Exploration and evaluation expenditures incurred during
the quarter ended March 31, 2017 were
primarily related to work relating to geotechnical investigations
and test work for the Project.
Selected financial highlights include:
Condensed
Consolidated Statements of Financial Position
|
As
at
March
31,
2017
|
As
at
December
31,
2016
|
Current
assets
|
$
2.3 M
|
$
3.2 M
|
Capital and other
assets
|
1.5
M
|
1.5
M
|
Current
liabilities
|
0.2
M
|
0.3
M
|
Premium on
flow-through shares and long-term liabilities
|
0.8
M
|
0.8
M
|
Shareholders'
equity
|
2.9
M
|
3.6
M
|
|
|
|
Consolidated
Statements of Loss and Comprehensive Loss
|
For
the
Quarter
Ended
March
31,
2017
|
For
the
Quarter
Ended
March
31,
2016
|
Interest and other
income
|
$
0.0 M
|
$
0.0 M
|
Expenses
|
0.9
M
|
1.6
M
|
Flow-through premium
recognized in income
|
0.0
M
|
0.2
M
|
Net and comprehensive
loss for the period
|
(0.9)
M
|
(1.4)
M
|
Net loss per share
for the period (basic and diluted)
|
(0.00)
|
(0.01)
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
For
the
Quarter Ended
March 31,
2017
|
For the
Quarter Ended March 31,
2016
|
Cash flows from
operating activities
|
$ (0.9)
M
|
$ (1.4)
M
|
Cash flows from
investing and financing activities
|
0.0
M
|
0.0
M
|
Net decrease in
cash
|
(0.9) M
|
(1.4) M
|
Cash – beginning of
period
|
2.8
M
|
4.0
M
|
Cash – end of
period
|
1.9
M
|
2.6
M
|
Outlook
The 2016 core drilling programs were required
to further expand the internal stratigraphy of the Orion South and
Star Kimberlites extending and in-filling geological continuity
from the successful programs of 2015. The Company intends to update
the previous Feasibility Study with a revised mine plan, where new
technology is applied to more efficiently remove the sand and clay
of the overburden, in addition to the application of new technology
in the processing plant. Preliminary calculations suggest that such
an updated feasibility study can positively change the economic
model for the Project by increasing the Mineral Reserve estimate
and reducing the pre-production capital costs and schedule to
diamond production.
In addition, the Company is proceeding with the environmental
assessment process and is continuing to seek opportunities for
development capital through participation in the Project by a third
party or a syndicate of investors.
As of May 3, 2017, the Company had
approximately $2.1 million in cash
and cash equivalents and short-term investments (excluding
$0.8 million in restricted cash). A
portion of the Company's cash and cash equivalents and short-term
investments will be used to advance certain aspects of the Project,
including work required for an updated feasibility study, the
environmental assessment process, as well as for general corporate
matters.
Caution Regarding Forward-looking Statements
This news release contains forward-looking statements within the
meaning of certain securities laws, including the "safe harbour"
provisions of Canadian securities legislation and the United States
Private Securities Litigation Reform Act of 1995. The words "may,"
"could," "should," "would," "suspect," "outlook," "believe,"
"plan," "anticipate," "estimate," "expect," "intend," and words and
expressions of similar import are intended to identify
forward-looking statements, and, in particular, statements
regarding Shore's future operations, future exploration and
development activities or other development plans contain
forward-looking statements. Forward-looking statements in this news
release include, but are not limited to, statements related to the
Feasibility Study; statements relating to mineral resources and/or
reserves; statements related to the approval of the development of
the Star - Orion South Diamond Project; statements relating to
future development of the Star - Orion South Diamond Project and
associated timelines; the environmental assessment and permitting
process; the Company's intention to seek developmental capital
though participation by a third party or syndicate of investors;
Shore's objectives for the ensuing year, the optimization of the
feasibility study, anticipated capital and operating cost savings
and the anticipated positive change in the economic model for the
Project; the aim of Shore to undertake additional studies and the
potential updating of the feasibility study.
These forward-looking statements are based on Shore's current
beliefs as well as assumptions made by and information currently
available to it and involve inherent risks and uncertainties, both
general and specific. Risks exist that forward-looking
statements will not be achieved due to a number of factors
including, but not limited to, developments in world diamond
markets, changes in diamond valuations, risks relating to
fluctuations in the Canadian dollar and other currencies relative
to the US dollar, changes in exploration, development or mining
plans due to exploration results and changing budget priorities of
Shore or its contractual partners, the effects of competition in
the markets in which Shore operates, the impact of changes in the
laws and regulations regulating mining exploration and development,
judicial or regulatory judgments and legal proceedings, operational
and infrastructure risks and the additional risks described in
Shore's most recently filed Annual Information Form, annual and
interim MD&A, news releases and technical reports.
Shore's anticipation of and success in managing the foregoing risks
could cause actual results to differ materially from what is
anticipated in such forward-looking statements.
Although management considers the assumptions contained in
forward-looking statements to be reasonable based on information
currently available to it, those assumptions may prove to be
incorrect. When making decisions with respect to Shore,
investors and others should not place undue reliance on these
statements and should carefully consider the foregoing factors and
other uncertainties and potential events. Unless required by
applicable securities law, Shore does not undertake to update any
forward-looking statement that may be made.
SOURCE Shore Gold Inc.