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Toronto Stock Exchange: GNew York Stock Exchange: GGVANCOUVER,
Sept. 5, 2012 /PRNewswire/ -
(TSX: G), (NYSE: GG) is pleased to provide an update in advance of an upcoming analyst and investor tour at its
Red Lake mine in
Ontario. Presentation slides to be used during the tour are available under the 'Investor Resources-Presentations' section at
During 2012, production at
Red Lake has been affected by slower-than-expected de-stressing at the 41 and 45 levels in the High Grade Zone to address increased seismicity. High Grade Zone de-stress work was successfully completed on the 41 level late in the second quarter. De-stress work at the 45 level has now been completed, allowing access to production stopes.
Over the remainder of 2012, the Company will continue to evaluate the impact on
Red Lake's long-term production profile of timing issues in accessing High Grade Zone reserves as well as continued grade variability in the Footwall Zone. Until further study of these issues has advanced, the range of production expectations for
Red Lake beyond the current year should reflect production similar to the range provided for 2012 of between 460,000 and 510,000 ounces. During the first half of 2012 gold production was 218,200 ounces at cash costs of
$568 per ounce and the mine remains on track to achieve 2012 production guidance.
Extending the High Grade Zone
During the second quarter of 2012, successful drilling results continued from
Red Lake's 4199 exploration ramp. Numerous intercepts have confirmed the extension of consistent high grade mineralization between levels 52 and 55. Drilling is also indicating the presence of high grade intercepts deeper at the 57 level.
Exploration of New Zone
New drill results in an unexplored area west of the High Grade Zone have outlined a new zone above the 52 level, which remains open vertically and to the west. As a result of the success of this drilling an exploration drift is being developed near the 47 level to access to allow for better drilling of this new structure. This area will be a focus of drilling over the remainder of the year as it has the potential to increase mining flexibility due to proximity to existing infrastructure.