TORONTO, Nov. 29,
2022 /CNW/ - Magna Gold Corp. (TSXV: MGR) (OTCPINK:
MGLQF) ("Magna" or the "Company"), today announced operating and
financial results for the three and nine months ended September 30, 2022 and 2021 ("Q3 2022" and "Q3
2021", respectively). All figures are in US Dollars, unless
otherwise expressed.
Q3 2022 Operating and Financial Highlights
- Total tonnes mined during Q3 2022 were 3.2 million compared to
6.2 million during Q3 2021.
- Q3 2022 strip-ratio was 1.5:1 compared to 2.6:1 during Q3
2021.
- Tonnes of ore processed during Q3 2022 were 1.1 million
compared to 1.8 million during Q3 2021.
- Ore mined grade from June 2020 to
date averages 0.39 g/t Au, which is 10-15% lower than the grades
set forth in the technical report dated August 8, 2020.
- Gold production of 9,256 ounces during Q3 2022 compared to
19,102 ounces during Q3 2021.
- Revenues for Q3 2022 were $15.7
million compared to $32.8
million during Q3 2021.
- Production costs of $19.8 million
during Q3 2022 compared to $20.2
million during Q3 2021. This includes an inventory
write-down of $1.7 million during Q3
2022.
Cash Position and Working Capital
- Cash at September 30, 2022, was
$0.1 million compared to $1.4 million at June 30,
2022.
- As of September 30, 2022, working
capital was negative $44.4 million
compared to negative $35.4 million at
June 30, 2022.
Corporate Update
The Company is undertaking a strategic review to preserve and
enhance value for shareholders. The Company at this point will look
to reduce operations at the San Francisco Mine. Management intends
on reducing all mining operations to lower levels whereby efforts
will focus on processing previously mined and stacked material.
The Company believes the reduced operations will lead to
drastically reduced costs and the cash flow generated will be used
to reduce payables as well as be used to optimize our mine plan
ahead of a more economically viable restart. Management will use
this time to deploy cash towards value maximizing activities such
as mine plan optimization and potential value creating initiatives
involving our portfolio of non-core assets.
The financial statements and MD&A for the three and nine
months ended September 30, 2022 and
2021, are available on SEDAR (www.sedar.com) and on the Company's
website (www.magnagoldcorp.com).
About Magna Gold Corp.
Magna is a Mexico focused gold and silver production
company engaged in acquiring, exploring, developing and operating
quality precious metals properties in Mexico. It is committed to advancing its 100%
owned flagship San Francisco Mine, its Margarita Silver Project and
other highly prospective mineral properties located in Sonora and in Chihuahua. The primary strength
of the Company is the team of highly experienced mining
professionals with a proven track record of developing properties
in Mexico from discovery to
production. Magna employs community members and services in its
operations.
ON BEHALF OF THE BOARD OF DIRECTORS
Arturo Bonillas
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Statements
This News Release includes certain "forward-looking
statements" which are not comprised of historical facts.
Forward-looking statements include estimates and statements that
describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be
identified by such terms as "believes", "anticipates", "expects",
"estimates", "may", "could", "would", "will", or "plans". Since
forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Although these statements are
based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward-looking information in this news release
includes, but is not limited to, the Company's objectives, goals or
future plans, exploration results, shareholder value expectations,
exploration and mine development plans (including mine plan
optimization and value creating initiatives involving non-core
assets), production (including gold production expectations and
guidance), processing and mining expectations (including statements
regarding reduction and resumption of mining operations), cost and
cash flow expectations, and payables reduction. Factors that could
cause actual results to differ materially from such forward-looking
information include, but are not limited to failure to identify
mineral resources, failure to convert estimated mineral resources
to reserves, the inability to complete a feasibility study which
recommends a production decision, the preliminary nature of
metallurgical test results, delays in obtaining or failures to
obtain required governmental, environmental or other project
approvals, political risks, uncertainties relating to the
availability and costs of financing needed in the future, changes
in equity markets, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of
projects, capital, operating and reclamation costs varying
significantly from estimates and the other risks involved in the
mineral exploration and development industry, risks
related to the effects of COVID-19 on the Company; and those
risks set out in the Company's public documents filed on SEDAR.
Although the Company believes that the assumptions and factors used
in preparing the forward-looking information in this news release
are reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
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SOURCE Magna Gold Corp.
