Toronto Stock Exchange: VG
VANCOUVER, May 23, 2013 /CNW/ - Veris Gold Corp. ("Veris" or the "Company") (TSX: VG) (OTCQB: YNGFF)
(Frankfurt Xetra Exchange: NG6A) would like to provide its shareholders with a strategic outlook and
general corporate statement on the Company's operations.
REVIEW OF COMPANY STRATEGY:
The Company is currently focused on increasing cash from operations by
focusing on the following key strategic initiatives:
Enhancing the depth of the existing management team expertise, both at
executive and operating
levels, by bringing leadership and additional knowledge to the
operations with a focus on improving
productivity, efficiency, and ultimately profitability;
Reviewing and updating existing mine plans and optimizing the roaster
facility in order to enhance
throughput, and improve recoveries;
Source additional toll milling sources to enhance operational
flexibility and lower unit costs through
additional throughput; and,
Restructuring existing debt facilities through a combination of (a)
decreasing monthly commitments
under the existing Senior Secured Gold Forward Facility; and (b)
pursuing options to refinance with
extended terms, thereby lowering monthly interest charges and increasing
cash flow by $2 to $5
million per month.
BUSINESS PLAN AND STRATEGY OVERVIEW:
The Company will continue to strengthen its management team at the
corporate office as well as at the Jerritt Canyon Mine Site. To date a
new President has been hired along with a Vice President of Investor
Relations. At Jerritt Canyon, the Company has hired a new Mine Manager
and is also benefitting from recent strong management additions to the
mill operations. These resources have brought significant experience
to the operations and have also been instrumental in attracting
additional skilled employees to Jerritt Canyon.
These key management changes will continue to assist in driving many of
the operational improvements the Company is making, and will support
many of the strategic initiatives being undertaken. The management team
at Jerritt Canyon is also committed to revising the 2013 operating and
capital budgets, and implementing a number of operating cost savings
and efficiencies. Our goal is to end the year with operating cash
costs in the $825-$850 range.
Management is confident that with current production levels, toll
milling opportunities and re-financing options the Company will
continue to strengthen the Jerritt Canyon operations and bring value to
With the addition of Starvation Canyon in early April the Company is now
better positioned to balance ore sources to the mill to achieve
operational optimization. The team is currently reviewing, optimizing,
and updating current mine plans to increase mine productivity
operational efficiencies while reducing operating costs. They are also
reviewing all exploration plans to increase our reserve/resource base
within the next quarter.
In the milling operations the new management personnel have brought
additional knowledge and understanding of the roasting circuit at
Jerritt, and have already made significant strides towards improving
mill throughput and recovery rates. Recoveries have improved from
approximately 80% over the last few quarters to 84% in the second
quarter, and are targeting a return to a historical average recovery
rate of 87% by end of the current year.
Toll Milling Opportunities
Recently the Company signed two toll milling contracts, one with ATNA
Resources and another with Klondex Mines. The first batch of ore from
ATNA's Pinson mine was successfully processed in mid-May and the
Company continues to work closely with Pinson on future deliveries.
The Company is working on four additional toll milling agreements. Two
of these opportunities include ore deliveries and the other two include
ore concentrate sources. These additional agreements should provide
sufficient feed to allow the operations to operate at consistent levels
above 4,000 tons per day and add significant cash flow to the operation
by maximizing the throughput.
The Company currently has a number of options that it is reviewing with
several fiscal agents to restructure the debt with extended terms,
which would considerably lower the monthly capital and interest
burden. These options are being evaluated in consideration of ongoing
discussions with several financial institutions and Deutsche Bank to
ensure the best option for shareholders is pursued.
Business Plan Overview
By the end of 2013, Jerritt Canyon is expected to surpass last year's
gold sales of $160M by producing and selling between 145,000 and
155,000 ounces of gold. Furthermore, the Company's toll milling
capability, due to its unique position as the only available roaster
facility with excess capacity in Nevada and surrounding areas, will
allow a significant offset to cash costs by generating additional
incremental toll-milling cash flows. Based on current production
increases and budget initiatives, as well as the additional
toll-milling ore from third party sources, the Company expects to be
free cash flow positive by the third quarter.
The information contained in this news release has been reviewed and
approved by the Company's Vice President of Exploration, Todd Johnson,
P.E., (Qualified Person per the requirements of NI 43-101).
About Veris Gold Corp.
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 assets are the permitted
and operating Jerritt Canyon mill and gold mines located 50 miles north
of Elko, Nevada, USA. The Company's primary focus is on the
re-development of the Jerritt Canyon mining and milling facility. The
Company also holds a portfolio of precious metals properties in British
Columbia and the Yukon Territory, Canada, including the former
producing Ketza River mine.
On behalf of
"VERIS GOLD CORP."
R. Llee Chapman
To be added to the Veris Gold e-mail list please sign up at www.verisgold.com.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release. All material information may be
accessed at www.sedar.com.
Forward-Looking Statements 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 plans for or intentions with
respect to the offering of Securities and the Company's use of proceeds
from the sale of Securities 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: the Company's ability to engage underwriters, dealers or
agents on terms and conditions deemed reasonable by the Company; the
need to satisfy regulatory and legal requirements with respect to any
offerings; 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. 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
SOURCE: Veris Gold Corp.
For further information:
Veris Gold Corp.
Joanne C. Jobin
VP, Investor Relations
T: (647) 964-0292
NA Toll Free: 1-855-688-9427
Veris Gold Corp.
Investor Relations Manager
T: (604) 688-9427 ext 224
NA Toll Free: 1-855-688-9427
Chairman T: +49 711 25 35 92 40