VANCOUVER, March 17, 2014 /CNW/ - Golden Queen Mining Co. Ltd. (TSX:GQM) (OTCQX:GQMNF) (the "Company") is pleased to announce its financial results for the
twelve months ended December 31, 2013 and to provide an update on the
construction underway on its Soledad Mountain Project (the "Project").
Amounts shown in U.S. dollars.
The Company was accepted by the International Cyanide Management
Institute as a signatory of the International Cyanide Management Code
The key highlight for 2013 was the start of construction of
infrastructure-related items during the second quarter of 2013.
The widening of Silver Queen Road with turning lanes was completed on
May 3. The turning lanes were extended with a "dip crossing" across a
A number of access roads and haul roads were constructed and this
included the north-south access road, the interconnecting roads and the
main haul road to the East waste rock storage pad
Drilling and blasting was also required in a few areas and was
successfully completed in December 2013.
The pad where the workshop-warehouse will be constructed was excavated.
The first phase of the site drainage system was completed in December
The overland conveyor route was constructed and this is a key part of
the infrastructure related to the construction of the Phase 1 heap
The site was fenced.
A test was conducted with lignin sulfonate as a dust control agent and
this appears to be a cost-effective agent for future use.
Detailed engineering for construction of the key facilities for the
Project continued and this was required to obtain final cost estimates
We awarded several key contracts for key turn-key projects in the fourth
quarter of 2013.
We purchased an administrative office in downtown Mojave in July that
has quickly become a hub of activity both for the Company's
administrative staff and for the Mojave community at large.
The Company maintained an active community outreach program in 2013.
Management and Board
The Company strengthened its management team in 2013 with the
appointment of Laurence Morris as Chief Operating Officer in April and
Andrée St-Germain as Vice President Finance and Chief Financial Officer
Bryan A. Coates, Bernard Guarnera and Guy Le Bel joined our Board in
The Company had net income of $2.0 million ($0.02 per share) in 2013
whereas in 2012, the Company had a net loss of $1.3 million ($0.01 per
share). The net income in 2013 was largely the result of a $5.4
million reduction in the fair value of derivative liabilities. The
Company had $15.8 million in assets, including $5.0 million in cash,
and a working capital balance of $3.6 million as at December 31, 2013
compared with $6.6 million in assets, including $4.0 million in cash,
and a working capital balance of $4.0 million as at December 31, 2012.
The Company incurred significantly higher general administrative
expenses in 2013 due to an increase in corporate activities both at the
Company's head office and on site as the Company continues to prepare
the site for production.
The Company incurred development costs of $8.1 million in 2013 as
compared to development costs of $1.8 million in 2012. Construction
costs included $2.7 million in site development, $1.6 million in
infrastructure, $1.0 million for road construction, $0.7 million to
excavate the pad where the workshop-warehouse will be constructed and
$0.6 million for the construction of the overland conveyor route. The
Company also spent $1.4 million to acquire property interests.
Shareholders are reminded that the Company has no revenues as its gold
and silver Project is not yet in production.
Results for the year ended on:
Dec. 31, 2013
Dec. 31, 2012
Mineral Property Interests
Total long term liabilities
Net income (loss) and comprehensive income (loss)
Basic income (loss) per share
Diluted income (loss) per share
Financial results discussed in this news release for the financial years
ended December 31, 2012 and 2013 have been audited by the Company's
The Company's audited consolidated financial statements and management's
discussion and analysis for fiscal 2013 will be available on the
Company's website at www.goldenqueen.com and on SEDAR and EDGAR.
The Company secured a $10 million loan in January 2014 to continue the
development work on site (please refer to our press release dated
January 6, 2014 for further details). The Company is evaluating various
financing options for the Project, including equity, debt, and other
alternatives. The Company estimates that construction can be completed
in approximately 15 months once project financing has been secured.
The Company awarded a contract for the construction of the
workshop-warehouse and wash slab. A key milestone was reached when the
prepared pad was formally handed over to the contractor in mid-January
to start construction of the footings as shown in Photograph 1. This
is the first of a number of important turn-key projects for the
Photograph 1 - Workshop-warehouse foundation concrete pour
Our general contractor is preparing the site where the
crushing-screening plant will be constructed as shown in Photograph 2.
This project is scheduled to be completed in late-March.
Photograph 2 - Crushing plant build-up in progress - lower area
The fill material required for the above project is being sourced from
the overflow or events pond, which is located just downstream of the
Merrill-Crowe plant. An independent consulting engineer has just
issued final construction drawings for the events pond and the
excavation is therefore being done to a final design as shown in
Photograph 3 - Events pond excavation
Petition Filed with the United States Fish and Wildlife Service
On January 31, 2014 the Center for Biological Diversity filed an
emergency petition with the United States Fish and Wildlife Service
(the "USFWS") asking the USFWS to list the Mojave Shoulderband snail as
a threatened or endangered species. Citing a report published more than
80 years ago, the Petition claims that the snail exists in only three
places, and that most of the snail habitat occurs on Soledad Mountain.
The Company is working with its environmental and legal advisors to
prepare a detailed and complete response to the Petition and expects to
submit a response to the USFWS in late-March 2014.
About Golden Queen Mining Co. Ltd:
The Company is developing a gold-silver, open pit, heap leach operation
on its fully-permitted Soledad Mountain property, located just outside
the town of Mojave in Kern County in southern California. The Project
will use conventional open pit mining methods and the cyanide heap
leach and Merrill-Crowe processes to recover gold and silver from
crushed, agglomerated ore.
Technical information in this news release was approved by H. Lutz
Klingmann, President, and a Qualified Person as defined under NI
Caution With Respect To Forward-looking Statements: The information in this news release includes certain "forward-looking
statements". All statements in this news release, other than
statements of historical fact, including, without limitation, plans for
and intentions with respect to construction and other development
activities on the Soledad Mountain Project, and future mining
operations on the Project, are forward-looking statements. There can be
no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from statements in this news
release regarding our intentions include the uncertainties involving
the availability of project financing in the debt and capital markets;
risks of construction and mining such as accidents, equipment
breakdowns, non-compliance with environmental and permit requirements,
and other risks and uncertainties disclosed in the section entitled
"Risk Factors" contained in our Annual Report on Form 10-K for the year
ended December 31, 2013. Investors are cautioned that forward-looking
statements are not guarantees of future performance and, accordingly,
should not to put undue reliance on forward-looking statements. Any
forward-looking statement made by us in this release is based only on
information currently available to us and speaks only as of the date on
which it is made.
Image with caption: "Workshop-warehouse foundation concrete pour (CNW Group/Golden Queen Mining Co. Ltd.)". Image available at: http://photos.newswire.ca/images/download/20140317_C5651_PHOTO_EN_38040.jpg
Image with caption: "Crushing plant build-up in progress - lower area (CNW Group/Golden Queen Mining Co. Ltd.)". Image available at: http://photos.newswire.ca/images/download/20140317_C5651_PHOTO_EN_38041.jpg
Image with caption: "Events pond excavation (CNW Group/Golden Queen Mining Co. Ltd.)". Image available at: http://photos.newswire.ca/images/download/20140317_C5651_PHOTO_EN_38042.jpg
SOURCE: Golden Queen Mining Co. Ltd.
For further information:
regarding this news release please contact:
Lutz Klingmann, President
Telephone: (604) 921-7570