Besra Announces 2014 Production Guidance, Cost Reductions and Feasibility
TORONTO, ONTARIO -- (Marketwired) -- 07/23/13 -- Following a meeting
of the Board of Directors on 12 July 2013, Besra
(TSX:BEZ)(ASX:BEZ)(OTCQX:BSRAF)(FRANKFURT:OP6) CEO John Seton is
pleased to announce production guidance for the FY 2014 of 65,000 -
Besides setting production guidance for the coming year, the Board
approved wide ranging cost cuts and efficiencies, which will reduce
central corporate costs by US$1.5m for a projected total of US$5.2m
in fiscal year 2014.
CEO John Seton said, "This announcement comes on the heels of
achieving production guidance of 60,000 ounces for FY 2013. The Board
has set FY 2014 guidance of 65,000 to 70,000 ounces, which represents
an 8-16% increase on FY 2013 and continues the year on year increase
for the past five years."
"We are fulfilling an aggressive cost cutting and efficiency program.
Whilst the currently depressed market and decline in gold price have
added impetus to this program, it is also the result of a thorough
review of our operations and associated costs led by CFO Jane Bell
and COO Darin Lee."
Significant corporate cost efficiencies will be achieved by reducing
external consultants in ICT and Investor Relations, reduction in
travel and components of officer remuneration packages. In Operations
the significant cost reductions will be achieved by the renegotiation
of a number of key materials contracts, bringing several other
contracts in house, such as mill and mine maintenance, reduction in
expatriate headcount and bonuses. In addition, three long serving
executives have relinquished their officer positions, which will
reduce compensation costs for the Company.
Changes in mining methodology and further mill automation leading to
reduced consumables and improved recovery rates will also contribute
to cost reductions. Additionally, operations in Vietnam are
increasing mill throughput which reduces the fixed cost per tonne.
The Company is projecting all-in sustainable costs (largely as
outlined by World Gold Council guidelines) of $1,150 - $1,170 per
ounce for FY 2014.
The Board is also investigating all opportunities to maximize the
value of its assets in Vietnam. This may include a transaction
culminating in the partial divestment by Besra and the listing of the
company's local operating subsidiaries on a Vietnamese exchange.
Any such transaction will enable the company to increase its focus
on, and redirect capital towards, development of its main asset at
Bau in Eastern Malaysia, which it regards as a world-class goldfield.
The Company is targeting public release of the results of the
Feasibility Study in September/October 2013.
Feasibility for the Jugan Hill deposit at Bau is progressing well,
with metallurgy and process having been conceptually resolved. The
internal Feasibility Study is scheduled for completion next month,
which will be followed by an external engineering, procurement and
construction management analysis.
Besra is also undertaking a further Feasibility Study for the Ho Ray
Thac Trang (HRTT) deposit at its Bong Mieu site in central Vietnam.
HRTT is a brownfield gold project with a JORC/NI 43-101 resource
situated 2.5km east of the Bong Mieu mill in central Vietnam. The
Feasibility Study is scheduled for completion by September 2013.
Category HRTT - NI 43-101 Resource
Tonnes Grade (g/t Au) Oz (Gold)
Measured 940,100 1.91 57,730
Indicated 2,153,900 1.47 101,797
Inferred 4,885,600 1.38 216,764
Besra is a diversified gold company focused on four advanced
properties; the Bau Goldfield in East Malaysia, Bong Mieu and Phuoc
Son in Central Vietnam, and Capcapo in the Philippines. Besra expects
to expand existing gold production capacity in Vietnam over the next
two years and is projecting new production capacity from Bau Central
during late 2015 (start up and production forecasts will depend on
the result of the current Jugan feasibility, which is scheduled for
completion in 2013).
Besra Gold Inc.
John A G Seton, Chief Executive Officer
The technical information in this press release has been prepared
under the supervision of Mr Rod Murfitt who is a member of the
Australasian Institute of Mining and Metallurgy (AusIMM), a
"Competent Person", as defined in the 2004 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserve" and a "Qualified Person" as defined in
National Instrument 43-101 Standards of Disclosure for Mineral
Projects of the Canadian Securities Administrators. Mr Murfitt is a
full-time consultant to the Company and is not "independent" within
the meaning of National Instrument 43-101. Mr Murfitt consents to the
inclusion in this press release of the technical information, in the
form, and context in which it appears.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain of the statements made and information contained herein is
"Forward-looking information" within the meaning of applicable
securities laws, including statements concerning our plans at our
producing mines and exploration projects, which involve known and
unknown risks, uncertainties, and other factors which may cause the
actual results, performance or achievements of the Company, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking information. Forward-looking information is subject
to a variety of risks and uncertainties that could cause actual
events or results to differ from those reflected in the
forward-looking information, including, without limitation, failure
to establish estimated resources or to convert resources to mineable
reserves; the grade and recovery of ore which is mined varying from
estimates; capital and operating costs varying significantly from
estimates; delays in obtaining or failure to obtain required
governmental, environmental, or other project approvals; changes in
national and local government legislation or regulations regarding
environmental factors, royalties, taxation or foreign investment;
political or economic instability; terrorism; inflation; changes in
currency exchange rates; fluctuations in commodity prices; delays in
the development of projects; shortage of personnel with the requisite
knowledge and skills to design and execute exploration and
development programs; difficulties in arranging contracts for
drilling and other exploration and development services; dependency
on equity market financings to fund programs and maintain and develop
mineral properties; and risks associated with title to resource
properties due to the difficulties of determining the validity of
certain claims and other risks and uncertainties, including those
described in each management's discussion and analysis released by
the Company. In addition, forward-looking information is based on
various assumptions including, without limitation, the expectations
and beliefs of management; the assumed long-term price of gold; the
availability of permits and surface rights; access to financing,
equipment and labour and that the political environment in the
jurisdictions within which the Company operates will continue to
support the development of environmentally safe mining projects.
Should one or more of these risks and uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those described in forward-looking statements.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements, which speak only as of the date they are
made. Except as required under applicable securities legislation, the
Company undertakes no obligation to publicly update or revise
forward-looking information, whether as a result of new information,
future events or otherwise.
Besra Gold Inc.
James W Hamilton, Investor Relations
+1 (416) 572 2525
TF: 1 888 902 5522 (North America) / 800 308 602 (Australia)
+1 (416) 572 4202 (FAX)
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