LionOre Mining Fourth Quarter Report and Year End Results 1997 (all amounts in US Dollars or otherwise noted)(Financial Tables to Follow Part 1 of 2).TORONTO--(BUSINESS WIRE)--March 3, 1998--LionOre Mining Inter To cross over boundaries; for example, internetwork means from one network to another. Contrast with intra. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :LIM.) LionOre Mining International Ltd. ("LionOre") is pleased to report its consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results for the twelve months and three months ending December December: see month. 31st, 1997 and highlights of operations: Year End Review and Outlook - In view of weak gold prices and the decline in the Australian dollar Noun 1. Australian dollar - the basic unit of money in Australia and Nauru dollar - the basic monetary unit in many countries; equal to 100 cents , the Company recorded a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of $73.4 million or $0.77 per share reducing shareholders equity to $ 70.5 million as of December 31st 1997. This charge has no cash impact but will enhance future profits with lower depreciation charges. - For 1997, the loss from operations before the write-down was $5.3 million (including depreciation of $5.4 million). - Fourth Quarter 1997 earnings before write-down, income tax and depreciation have improved by $ 3.0 million over the Third Quarter 1997. - LionOre recorded net cash from operating activities of $209,925 in 1997. - At the Bounty bounty, payment made by a government bounty, amount paid by a government for the achievement of certain economic or other goals. It often takes the form of a premium paid for the increased production or export of certain goods. gold mine in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , good progress has been made leading to a budgeted monthly gold production of 9,000 to 10,000 ounces of gold, as achieved on average since November November: see month. 1997. - Increasing thoughput of developed underground ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. at Bounty should have a further positive impact on the productivity of the mine and cash operating costs operating costs npl → gastos mpl operacionales . - Tati Tati (tä`tē), region, c.2,070 sq mi (5,360 sq km), NE Botswana. Nickel, copper, asbestos, and manganese are mined in the region. Tati was a source of gold for centuries; mining ceased there in the early 1960s. Nickel nickel, metallic chemical element; symbol Ni; at. no. 28; at. wt. 58.69; m.p. about 1,453°C;; b.p. about 2,732°C;; sp. gr. 8.902 at 25°C;; valence 0, +1, +2, +3, or +4. in Botswana plans to increase its production of nickel concentrates in 1998 which is expected to lower production costs - Exploration at Tati's Phoenix open pit mine is expected to increase proven reserves to support higher production levels. - The project economics of the Emily EMILY Early Money Is Like Yeast EMILY Electronic Membrane-Information Library EMILY Every Moment I Love You Ann ANN, Scotch law. Half a year's stipend over and above what is owing for the incumbency due to a minister's relict, or child, or next of kin, after his decease. Wishaw. Also, an abbreviation of annus, year; also of annates. In the old law French writers, ann or rather an, signifies a year. nickel project The Nickel Project is a nickname for a transportation funding package enacted by the 2003 Washington State Legislature. The slogan for the package is "It’s your Nickel, Watch it Work." The $3. in Australia are attractive at current nickel prices supporting target production in the second half 1999. - In light of continuation continuation - continuation passing style of depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. gold and nickel prices,the Company is concentrating its priorities on gold (Bounty)operations, nickel (Tati) expansion and developing Emily Ann into production and is making reductions in corporate overhead,capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. , mine development and exploration spending and. Gold Operations - Fourth Quarter gold production of 36,740 ounces represents a 55 percent improvement compared to the Third Quarter. - In 1997, gold production from Bounty was 98,775 ounces(compared to 95,613 ounces the previous year). LionOre's share(36.65 percent) of gold production from the Mt.McClure Mc·Clure , Samuel Sidney 1857-1949. Irish-born American editor and publisher who founded McClure's Magazine (1893), an influential muckraking periodical. mine was 32,247ounces; total year gold production was 131,021 ounces. - Gold exploration at Bounty has replenished the ore resources by more than 175,000 ounces. Resources (including reserves) at bounty as of December 31st 1997 are 6 Million tonnes of ore with an average grade of 4.40 g/t, containing 845,803 ounces, as compared to 820,000 ounces as of June June: see month. 30th 1996. Nickel Operations and Development - In 1997, Tati Nickel in Botswana (41.65 percent owned) produced a total of 7,131 tonnes of nickel in concentrates and 2,450 tonnes of copper in concentrates. Sales tonnes of payable nickel increased by 5 percent compared to the previous year. - The Emily Ann nickel project in Australia (37.5 percent owned) is proceeding according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. plan and completion of a detailed mine and optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. study is scheduled for review during the first half of 1998. Metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. testwork is achieving good results with 85-90 percent recoveries and 12-17 percent nickel grades in concentrates. - A new nickel sulphide sulphide: see sulfide. occurrence was discovered at the end of the year at the Vision Prospect, located 3.5 kilometers north of Emily Ann. Intersections achieved by diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral include 5.16 percent nickel over 1 meter meter, unit of measure meter, abbr. m, fundamental unit of length in the metric system. The meter was originally defined as 1/10,000,000 of the distance between the equator and either pole; however, the original survey was inaccurate and the meter was later and 1.17 percent nickel over 15 meters. The mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. is open in all directions. - Subsequent to the year end, Jubilee jubilee (j  `bĭlē), in the Bible, a year when alienated property and land were restored, slaves were manumitted, debts were forgiven, and a general sabbatical year was observed in Gold Mines, a listed
Australian Australianpertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. company in which LionOre has a 22 percent shareholding (on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis) reported a first mineral resource statement for their Cosmos cosmos (kŏz`məs), any plant of the tropical American genus Cosmos of the family Asteraceae (aster family). C. bipinnatus, massive sulphide nickel deposit with a measured resource of 401,000 tonnes @ 8.20 percent nickel. The company indicated that the orebody remains open down-dip and latest deep drilling, which was not included in the resource calculation, intersected massive sulphides at a vertical depth of 180 meters below surface (JCD JCD abbr. Latin Juris Canonici Doctor (Doctor of Canon Law) 080: 6.10 percent Ni over 6.84 meters from a depth of 201 meters, including 14.3 percent Ni over 1.75 meters from 206.1 meters). Fourth Quarter and 1997 Financial Review (Dec.31st 1997: A$ 1.00:US$ 0.65)
The results of operations of LionOre for the year ended
December 31st, 1997 include the consolidation of the financial
position and results of operations of LionOre Australia
Pty.(formerly Forrestania Gold NL), an Australian gold producer
and nickel and gold exploration company for the nine month period
April 1st, 1997 to December 31st, 1997. Following the initial
investment in Forrestania in November 1996, LionOre completed a
100 percent takeover of Forrestania for cash and share
consideration for an aggregate value of $125.2 million, effective
April 1st, 1997. The consideration paid in excess of the book
value of LionOre Australia assets acquired amounted to $ 56.5
million
As of December 31st, 1997 the Company undertook an
analysis of the carrying values of its Australian assets in view
of lower gold prices, declines in the value of the Australian
currency and general market conditions. This review resulted in a
write-down in the carrying value of its Australian gold assets
including producing property, plant and equipment, exploration
properties and other assets in the aggregate amount of $73.4
million. As a result of this write down, LionOre reports a
consolidated net loss of $78.7 million for the year ended December
31st, 1997 as compared to net earnings of $873,415 for the five
months ended December 31, 1996.
The loss from operations before the write downs was $5.3
million for the year ended December 31st, 1997 as compared to net
earnings of $873,415 for the prior year. LionOre recorded net cash
from operating activities of $209,925. The Company has cash and
equivalents (net of bank overdraft) of $9.3 million as at December
31st 1997.
For the three months ending December 31st 1997, the net
loss before income taxes and writedowns amounted to $2,221,048,
compared to a net loss of $4,951,694 for the three months ending
September 30th, 1997. The Fourth Quarter results include a
significant improvement in Australian gold production as compared
to the third quarter.
Gold Operations
LionOre Australia's gold sales for the Fourth Quarter
were 35,650 ounces (36,740 ounces produced) an increase of 34
percent (and 55 percent respectively) over the previous quarter.
This includes the Company's share of gold from its 36.65 percent
holding in the Mt. McClure mine. The Company realized an average
price of A$515 per ounce on its sales during the quarter as a
result of its hedging program. Subsequent to the quarter end, the
Company closed out 202,000 ounces of its hedge position and
realized a cash surplus of A$7.9 million. The Company maintains
50,000 ounces of forward gold sales at an average price of A$475
per ounce.
LionOre Australia Gold Production Statistics 1997 1996 ----- ---- 4th Qrt 3rd Qtr. 12 Mos(x). 4th.Qtr. 12Mos. -------- ------- -------- -------- ------- Bounty Mine (100 percent owned) 27,500 16,709 98,775 31,348 95,613 Mt. McClure Mine (36.65 percent owned) 9,240 7,069 32,246 10,700 39,811 -------- ------- -------- -------- ------- TOTAL 36,740 23,778 131,021 42,048 135,424 ((x) LionOre took ownership of the Australian operations on April 1st, 1997)
Bounty Mine
Gold production improved in the Fourth Quarter following
interrupted production during the Third Quarter. The ground support
system throughout the current and future production areas continues
to be upgraded to enhance the safe operations of the mine. Gold
production from Bounty for the Fourth Quarter was approximately
11,000 ounces higher than the third quarter.
Year end gold production from Bounty improved to 98,775 ounces in
comparison to 95,613 ounces the previous year. Average cash
production costs for the Fourth Quarter of 1997 at Bounty were A$470
per ounce. This compares favourably to A$530 per ounce for the year
1997. The first half of 1997 saw good progress in increasing
production and reducing costs towards target levels. A rockfall in
one of the main producing areas of the mine in the second half, lead
to a decision to substantially upgraded rock support in all ore
drives. Production returned to acceptable levels of budgeted monthly
production of 9,000 to 10,000 ounces of gold, as being achieved on
average since November 1997. Average cash production costs continue
to fall with improving underground mining productivity.
Mt. McClure Mine (36.65 percent owned)
Attributable gold production from Mt. McClure of 9,240 ounces
for the Fourth Quarter was up 31 percent compared to the previous
quarter, largely as a result of better productivity from the higher
grade Lotus underground mine. 1997 attributable gold production from
Mt McClure was 32,247 ounces and although in 1997 a similar tonnage
of ore was treated compared to the previous year, gold production
decreased by 19 percent as a result of lower grades. A partial
collapse of one wall of the Cockburn open pit together with lower
tonnages from the high grade Lotus underground mine, reduced the
average grade of available run-of-mine ore to the mill. Cash
operating costs for the Fourth Quarter were A$437 per ounce and A$427
for the year.
Gold Exploration and Resources/Reserves Bounty Gold Mine
During the Fourth Quarter underground exploration has extended
the resource base both above and below the lowest development level
on the 37 level (850 meters below surface). Diamond drilling
outlined further extensions to some 200 meters below the 37 level.
Above the 37 level drilling has increased the mineable reserves and
outlined further extensions of the footwall lode. New mining layouts
for the lower levels of the mine which will improve access,
efficiency and ore grade control are being designed based on the
latest drilling results. The Bounty ore body remains open to depth.
At the Blue Vein deposit, latest drilling has confirmed that
mineralization remains open down dip beneath the open pit.
Underground as well as surface exploration at the Bounty mine has
shown a significant increase in resources, including in the area of
the mine currently developed. In 1997, exploration at Bounty has
replenished the ore resources by more than 175.000 ounces. Resources
(including reserves) at Bounty as of December 31st 1997 are 6 Million
tonnes of ore with an average grade of 4.40 g/t, containing 845,803
ounces. Mt.McClure
The operator of the mine, Australian Resources reported as of
December 31st 1997 reserves and resources at Mt.McClure of 17.9
million tonnes at an average grade of 1.9 g/t containing 1.1 million
ounces of gold. LionOre's attributable share is 407,140 ounces.
Nickel Operations
Operations at Tati Nickel in Botswana produced 1,824 tonnes of
nickel and 655 tonnes of copper in concentrates in the Fourth
Quarter. Nickel produced in concentrates of 7,131 tonnes for 1997 is
4 percent higher than in 1996. Payable nickel sold in 1997 of 5,425
tonnes was 5 percent higher than in 1996.
Tati Nickel / LionOre - 41.65 percent owned (Metric tonnes, produced in concentrate) 1997 1996 ----- ------ 4th Qtr. Year End Year End -------- --------- --------- Nickel 1,824 7,131 6,829 Copper 655 2,450 2,459
LionOre's share (41.65 percent) of equity earnings was $215,000
for the Fourth Quarter and $2,323,654 for 1997. Lower earnings in
the Fourth Quarter were effected primarily by low nickel prices.
At the Phoenix open pit nickel mine, diamond drilling located in
a perimeter of between 100 and 200 meters around the current pit
continues to intersect lenses of massive sulphide and disseminated
nickel sulphide mineralization comparable to the existing resource.
Drilling has confirmed a lateral extension of the resource at Tati
Nickel. This extension is not included in the reserve statement as
at December 31st,1997 of 18.2 million tonnes of proven and probable
reserves grading at average 0.69 percent nickel and 0.35 percent
copper. In 1998, an increase in production by approximately 20
percent to over 8,000 tonnes per year of nickel in concentrates is
being planned.
At the Selkirk underground mine, proven and probable reserves as
at December 31st,1997 are calculated at 248,000 tonnes grading at
average 2.42 percent nickel and 1.37 percent copper. A geophysical
anomaly containing lenses and stringer sulphide mineralization close
to the current orebody is currently under exploration. Australian
Nickel Projects Emily Ann Nickel Deposit
Infill drilling was completed on the Emily Ann deposit during the
Fourth Quarter. The results confirmed those previously obtained from
the delineation drilling and importantly provided further confidence
regarding the internal continuity of the deposit. Further drilling
along strike, north of the Toolangani fault which truncates the
deposit at its northern end, encountered further narrow extensions of
mineralization.
Metallurgical drilling has provided 9 tonnes of samples for
testwork. Flotation work is at an advanced stage and has achieved
85-90 percent recoveries with 12-17 percent nickel grades in
concentrate.
Based on a cut off at 1 percent nickel, the total indicated and
inferred resources at Emily Ann as at July 31st 1997 are 2 million
tonnes at 4. percent nickel containing 80,000 tonnes of nickel. A
detailed mine and optimization study is scheduled during the first
half of 1998. Maggie Hays
The infill diamond drilling, comprising 50 parent holes and 34
wedge holes was completed in the Fourth Quarter. The results further
confirmed the internal continuity of the deposit and better define
the boundaries of mineralization. The resource is currently being
remodeled. As at May 1997, the indicated and inferred resources at a
cut-off of 0.7 percent nickel at Maggie Hays amount to 14.78 million
tonnes at 1.45 percent nickel containing 214,000 tonnes of nickel.
Roundtop Project
A regional exploration program entailing both diamond drilling
and RC drilling continued during the Fourth Quarter at the Roundtop
project. The most important result from this program is the
discovery of a new nickel sulphide occurrence (termed The Vision
Prospect), some 3.5 kilometers north of the Emily Ann deposit.
Intersections achieved by diamond drilling include 5.16 percent
nickel over 1 meter from 210.41 meters depth, 1.17 percent nickel
over 14.97 meters from 242.86 meters depth, 0.97 percent nickel over
10.30 meters from 215.17 meters depth. The mineralization is open in
all directions.
Maggie Hays is part of the Lake Johnston Joint Venture which is
owned 50/50 by QNI part of the Billiton plc group of the UK and
LionOre Australia. The Emily Ann deposit is located 3 km north of
Maggie Hays on the Roundtop project which is a joint venture between
the Lake Johnston Joint Venture partners (75 percent) and Capricorn
Resources NL (25 percent).
Cosmos Nickel Deposit (22 percent owned)
In September 1997, Jubilee Gold Mines NL, a listed Australian
company in which LionOre has a 22 percent fully diluted shareholding,
announced the discovery of the Cosmos nickel deposit, a very high
grade massive sulphide nickel deposit in the Wiluna-Agnew Greenstone
Belt of central Western Australia. This area is one of the most
strongly endowed regions for nickel sulphides in the world, as
demonstrated by the Honeymoon Well, Mt.Keith, Yakabindie and Leinster
deposits.
Jubilee reported recently a first mineral resource statement for
the Cosmos deposit with a measured resource of 401,000 tonnes @ 8.20
percent nickel. The company indicated that the orebody remains open
down-dip and latest deep drilling, which was not included in the
resource calculation, intersected massive sulphides at a vertical
depth of 180 meters below surface (JCD080: 6.10 percent Ni over 6.84
meters from a depth of 201 meters, including 14.3 percent Ni over
1.75 meters from 206.1 meters).
LionOre is an international mining company headquartered in
Toronto, Ontario, Canada and trades on The Toronto Stock Exchange
under the stock symbol - LIM.
CONTACT: LionOre Mining International Ltd. Mr. Ted This article is about the actor. For the animated series, see Mister T (TV series). For other uses, see Mr. T (disambiguation). Mr. T (legally changed his name from Laurence Tureaud), (born on May 21 1952), is an iconic actor known for his roles as Sgt. "B. A. Mayers, 416/777-1670 or LionOre Mining International Ltd. Mr. Gil Playford Playford may refer to:
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