White Tiger Gold Ltd. (WTG.TO) today provided an update of its
2012 production forecast, outlined related actions being taken by
the Company and announced that it is in discussions with VTB
Capital plc regarding its US$80 million loan facility.
2012 Production Forecast
The Company currently expects 2012 gold production at its
Savkino Mine of approximately 18,000 ounces instead of the original
production target of 20,000 ounces. The production shortfall can be
attributed primarily to longer leach times than planned (based on
the metallurgical characteristics of ore stacked in the third and
fourth quarters of 2012), under-utilization of crushers (due to
significant rainfall over the summer) and faulty pit/crusher
scales, resulting in less ore being stacked than anticipated. White
Tiger said the average grades from current Savkino operations are
currently well in excess of 1.5g/t and it expects cash costs for
2012 to be approximately $750/ounce. The Company currently has in
excess of 29,000 ounces of gold on pad and with the longer leach
times the Company expects an increase in gold production in the
first and second quarters of 2013.
It is maintaining its 2013 gold production guidance of
approximately 48,000 ounces.
VTB Capital plc
The Company now expects that it will not meet the December 31,
2012 gold sales covenant under the VTB Facility, VTB Capital has
been notified to ensure that any potential concerns of VTB Capital
are addressed and so that the Company will continue to have access
to the remaining $21.0 million under the VTB Facility.
White Tiger is trading just above a yr low.