|Marlin Gold Ships a Quarterly Record of 18,875 Ounces Gold in 1Q17 and Intersects 3.45 g/t Gold Over 7.00 Meters at La Trinidad|
BUZ INVESTORS Marlin Gold Ships a Quarterly Record — Marlin Gold Mining Ltd. (TSX-V: MLN) (“Marlin” or the “Company”) is pleased to provide an operating update from its wholly owned La Trinidad mine in Sinaloa, Mexico (“La Trinidad”).
Since September 15, 2016, when Marlin began consistently mining the high grade HS Zone, the Company has stacked 79,302 ounces of gold with 19,844 coming in 1Q17 alone. The tonnes stacked in 1Q17 had an average grade of approximately 1.74 grams per tonne. In addition, Marlin has an approximately 185,000-tonne stockpile of mineralized material remains with an average grade of approximately 0.80 grams per tonne. Management expects to process grades similar to the average stockpile grade as we accelerate mining to reach the southern part of the high grade HS Zone by the end of 2Q17. This is an improvement to prior estimates of reaching the southern part of the HS Zone by 3Q17.
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Marlin Gold Ships a Quarterly Record
With the processing of our current stockpile, and accelerated southern HS Zone mine plan, management now expects consistent operating cash flow for at least the next two full years, confirming what was estimated by the 2nd Amended NI 43-101 Technical Report dated February 1, 2013 prepared by SRK Consulting. A detailed operating update will be provided in conjunction with filing our audited financials in April.
Gold shipments in 1Q17 reached a new quarterly record at 18,875 ounces. Total costs per ounce shipped will be approximately US$476 for 1Q17 (total costs for March 2017 are preliminary estimates and may be refined when final invoices are received). As we accelerate mining to reach the southern part of the high grade HS Zone, total costs will average US$3.0-3.25 million monthly until the end of 2Q17 when they should migrate back down to the US$2.25-2.5 million monthly cost estimate. All-in mining costs, including drilling, loading, blasting, hauling, diesel and explosives are approximately US$1.70 per tonne.
Due to record free cash flow generated from La Trinidad, the Company repaid a further US$2.0 million of principal from its unsecured facility (the “Facility”) to affiliates of Wexford Capital LP, Marlin’s controlling shareholder. Total outstanding principal of the Facility now stands at US$30.0 million, down from US$37.5 million at year end 2016.
After the US$2.0 million (approximately $2.6 million) principal repayment, Marlin’s cash and refined gold stands at approximately $6.7 million with a payable balance of approximately $4.2 million. This does not include Marlin’s approximately $8.7 million in shares of Golden Reign Resources Ltd, receivable and refundable value added taxes (IVA) of approximately $7.7 million (for the period ending September 30, 2016) or approximately 23,000 ounces of recoverable gold on the leach pad and in stockpile.
The table below highlight key statistics at La Trinidad since the quarter ending September 30, 2016.
A drill contractor has been at site since early December 2016 to follow up on the high grade blast-hole assays from the negative two level bench and below in the north side pit wall and to drill to depth the southern part of the high grade HS Zone. The table below summarizes the drill results of both targets to date.
Samples were kept in a secured logging and storage facility until such time that they were received on site by representatives of Bureau Veritas Commodities Canada Ltd. (“Bureau Veritas”). Sample preparation was done in the Durango facilities of Bureau Veritas and pulps were sent to the Bureau Veritas laboratory in Vancouver for analysis.
Dr. Matthew D. Gray. C.P.G., of Resource Geosciences Incorporated, a Qualified Person under the definitions of CSA NI 43-101, implemented and supervised industry standard QA/QC protocols for the La Trinidad drill sampling program including insertion of duplicate and reference standard samples. Dr. Gray has verified the reliability of the drill sampling results reported in this press release.
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