VANCOUVER, Feb. 14, 2013 /CNW/ - Veris Gold Corp. (TSX: VG) (OTCQB: YNGFF) (Frankfurt Xetra Exchange:
NG6A) is pleased to report on the progress of the development of its newest
underground mine, Starvation Canyon located in the southern portion of
the Jerritt Canyon property in Elko County, Nevada. Jerritt Canyon is a
gold producing mine site operated by Veris Gold Corp. USA Inc., a
wholly-owned subsidiary of Veris Gold Corp. ("Veris" or the "Company").
Permitting activities with the State of Nevada were completed in 2011
allowing the Company to begin advancing Starvation Canyon to become a
producing underground mine. Development continued throughout January
2013 and to date over 400 meters (1,300 feet) of drifting has been
completed. Development of the stope accesses in the ore are in progress
and gold grades from initial muck sampling are the same or exceed those
as predicted from the block model. To date more than 1,500 tons of ore
have been brought to the surface and stockpiled for additional sampling
and analysis. The next stage in development, construction of a vent
raise and a secondary escapeway, is scheduled to begin in the next ten
days and should be completed by mid-March at which time production and
ore haulage to the plant will be allowed to commence. The project
remains on budget and on schedule and is expected to contribute over
33,000 ounces of gold to 2013 production from Jerritt Canyon
operations. Starvation Canyon will be the first new mine in production
at Jerritt Canyon since 2004.
The Starvation Canyon Measured and Indicated resources including
reserves as of December 31, 2011 are 5.9 kt averaging 0.294 opt
containing 1,700 ounces and 519.4kt averaging 0.25 opt containing
130,000 ounces, respectively. This information is referenced in the
latest NI 43-101 which can be found here: http://www.verisgold.com/i/pdf/Jerritt_43-101_Technical_Report_YE2011.pdf.
The Company's 2013 exploration plans near Starvation Canyon are still
being prioritized, but will likely include drilling at the West
Starvation target located adjacent and on trend to the Starvation
Canyon resource as highlighted in the Titan-24 direct current induced
polarization magnetotelluric (DC-IP-MT) ground geophysical survey
conducted in 2011.
The Company also wishes to comment on the share price decline over the
past several months which has raised concerns amongst our investors.
Volatile stock market conditions, particularly for junior mining
producers, and continued concern for the global economy have no doubt
contributed to the decline. There has also been a higher than normal
volume of small block trading in the shares of the Company and we are
actively investigating this specific issue to see if it is significant.
However, Veris management is unaware of any specific reason, other than
these continuing general market conditions and market trading
influences unrelated to the Company's current operations, for the
recent decline in the share price as there have been no events or
material changes in the affairs of the Company to support the decline.
Management believes that with the positive cash flows from operations,
funds raised from the recent financing and the negotiations
successfully completed on previously maturing forward gold loans (now
maturing in June 2013 and January 2014), the Company has adequate
capital to fund the development of Starvation Canyon and any remaining
environmental capital or mill improvements required to continue
optimizing existing operations.
In the next few days the Company, having successfully met the
performance criteria required during the 18 month period following the
closing of the Deutsche Bank Gold Forward Facility, will also be in
receipt of $8 million of funds previously set aside under that
agreement. The progress made on production from Starvation Canyon and
the test work completed to date on potential toll milling opportunities
will significantly improve the overall valuation of the Company and the
free cash flow from the operations.
Mr. Randy Reichert, Co-Chief Executive Officer and Chief Operations
Officer of Veris Gold Corp, commented, "The Company continues to take
substantial steps in advancing the current business plan, adding
further high grade ore to the roaster operations at Jerritt Canyon from
Starvation Canyon and securing key toll milling contracts that will
improve the free cash flow significantly. In the meantime, the Company
is continuing the focus on reducing costs at Jerritt Canyon and
optimizing the processing facility. We are proud of exceptional
progress our teams have made to bring this mine into production."
Mr. Shaun Heinrichs, Co-Chief Executive Officer and Chief Financial
Officer of Veris Gold Corp, added, "We are pressing forward with
opportunities to enhance shareholder value and remain focused on
bringing new interest into the Company. Our strategy continues to
involve pursuing a listing on the NYSE MKT which we believe will
increase the shareholder base and improve the trading volume in the
Company's common shares, however, this plan is currently on hold due to
the current share price falling below $2, a key quantitative criteria
to list on the NYSE MKT. As soon as Veris' share price improves, and
such improvement is sustained for a period of time, Veris will proceed
with its US listing on the NYSE MKT."
The information contained in this news release has been reviewed and
approved by the Company's Vice President of Exploration, Todd Johnson,
M.Sc. (Qualified Person per the requirements of NI 43-101).
Veris Gold Corp. is a growing mid-tier North American gold producer in
the business of developing and operating gold mines in geo-politically
stable jurisdictions. The Company's primary asset is the permitted and
operating Jerritt Canyon gold mine located 50 miles north of Elko,
Nevada, USA. The Company also holds a diverse portfolio of precious
metals properties in British Columbia and the Yukon Territory, Canada,
including the former producing Ketza River mine. The Company's focus
has been on the re-development of the Jerritt Canyon mining and milling
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This press release contains "forward-looking statements" and "forward
looking information" within the meaning of applicable securities laws.
All statements, other than statements of historical fact, including
without limitation, statements relating to cashflows from production,
the timing for the completion of development at Starvation Canyon and
in production date, as well as plans for listing of the Company's
Securities on the NYSE MKT are forward-looking statements. Generally,
these forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". By their nature,
forward-looking statements and information are based on assumptions and
involve known and unknown risks, uncertainties and other factors that
may cause our actual results, performance or achievements, or industry
results, to be materially different from future results, performance or
achievements expressed or implied by such forward-looking information.
Such risks, uncertainties and other factors include among other things
the following: gold price volatility; discrepancies between actual and
estimated production and mineral reserves and resources; the
speculative nature of gold exploration; mining operational and
development risk; and regulatory risks related both to the operation of
Jerritt Canyon and listing on the NYSE MKT. See our Annual Information
Form for additional information on risks, uncertainties and other
related factors. Although the Company has attempted to identify
important factors that could cause actual results to differ materially
from those contained in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements.
The Company does not undertake to update any forward-looking statements
that are incorporated by reference herein, except in accordance with
applicable securities laws.
SOURCE: Veris Gold Corp.
For further information:
Veris Gold Corp.
Investor Relations Manager
Tel: (604) 688-9427 ext 224
CHF Investor Relations
Director of Operations
Tel: (416) 868-1079 ext. 225
Chairman Tel: +49 711 25 35 92 40