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.
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