New Wisdom Investment Limited

TMAC looks for Hope Bay expansion

(Sept 21, 2017)

Budding gold miner TMAC Resources (CN:TMR) has intersected further high-grade gold as it works to optimise and expand its hamstrung Hope Bay project in northern Canada.

The company started commercial production at its Doris deposit in June after a “slower than expected” ramp up. It produced 12,270 ounces for the quarter with average recoveries of 67% in June and an all-in sustaining cost for the quarter of US$1,801 per ounce of gold sold.

TMAC CEO Dr Catharine Farrow said the latest drilling results showed the potential to increase the mineral resource estimates next year and added that efforts were continuing to improve the plant’s overall gold recoveries.

The final assays from the initial drilling programme at Boris, 60km south of Doris, included 80.4g/t over 3.2m within 17.6m at 22g/t from 57m; while highlights from drilling at Doris BTD hit 18.8g/t over 2.4m.

Farrow said the processing plant at Doris was improving with daily throughputs averaging 90% of design capacity in September.

Optimisation work was continuing on the gravity and flotation side and the company was also troubleshooting performance issues in the concentrate treatment side of the plant.

TMAC has effectively halved its expected gold sales for the year, to 50,000-60,000oz.

Shares in the company reached a 52-week low last month following the release of its second quarter results but gained 1.8% on Friday to C$9.39, capitalising the company around C$789 million (US$648 million).

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