Roxgold announces production of 77,157 ounces of gold in 2016 and provides 2017 operational outlook

TORONTO, Jan. 17, 2017 /CNW/ - Roxgold Inc. ("Roxgold" or the "Company") (TSX.V: ROG) is pleased to announce its preliminary fourth quarter and full year production results for 2016 and its operational outlook for 2017. All amounts are in US dollars unless otherwise indicated.

2016 Highlights

• Fourth quarter of 2016 was the first quarter of commercial production for the Company
• 29,688 ounces of gold produced at an average mill feed grade of 15.5 grams per tonne ("gpt")
• Total production for 2016 from the first gold pour on May 16^th was 77,157 ounces of gold

2017 Outlook

• Gold production is expected to be between 105,000 and 115,000 ounces in 2017
• Cost estimates for 2017:
  • Cash operating cost per ounce produced¹: $445 - $490
  • All-in sustaining cost¹: $740 - $790 per ounce
  • Capital expenditure: $24 million - $28 million

"2016 was an extremely significant year for Roxgold. The Company first poured gold in May, ahead of schedule and under budget. We saw the successful ramp up of the Yaramoko gold mine and reached several milestones including declaring commercial production on October 1^st," commented John Dorward, Roxgold's President and CEO. "77,157 Ounces of gold were poured in the calendar year at an average mill feed grade of 15.5 grams per tonne. We look forward to further success in 2017, and continuing the Company's track record of meeting or exceeding expectations."

Key Production Metrics as of December 31, 2016

2016 Operational Performance

In 2016, the Yaramoko gold mine commenced operations and has performed steadily throughout. 183,707 tonnes of ore were extracted from the underground mine as stoping operations were established to Feasibility Study ("FS") levels throughout the year. Overall dilution averaged 15.4% for the year, which compared favourably to the Company's FS assumption of 20.5%.

Reconciliation for the project-to-date continues to exhibit good global accuracy. The reconciled gold contained in ore mined to date shows a positive comparison of +3.6% compared to the FS model prediction due to higher grades encountered. Since the establishment of stoping activities, ten stopes have been completed. 

The processing facility continues to operate well with high availabilities and excellent metallurgical performance. In 2016, 162,480 tonnes of ore were processed. In the fourth quarter, the plant essentially matched mine production rates and processed 61,265 tonnes at an average throughput of 666 tonnes per day ("tpd"), to produce 29,688 ounces of gold.  In the same period, the average gold recovery rate was 98.9% above the FS assumption of 96.9%. The 2016 average recovery to date has been 98.5%.

The average realized gold price for the fourth quarter was $1,208 per ounce and the realized gold price for the year was $1,271 per ounce.

Roxgold's closing cash balance as at December 31, 2016 was approximately $69 million (unaudited).

Health and Safety in 2016

There were no lost time injuries ("LTI") during the fourth quarter, with only one LTI occurring in the last 12 months. Since then, there have been 1,850,000 LTI free hours worked to December 31, 2016.

2017 Operational Outlook

Roxgold anticipates gold production at its Yaramoko gold mine to be between 105,000 and 115,000 ounces in 2017.

It is also expected that the connection to the Burkina Faso high-voltage electricity network will be completed and commissioned during the first quarter of 2017. This will contribute to reduced operating costs across the operation. The existing diesel power station will remain on site as a source of back-up power.

Qualified Persons

Paul Criddle, FAUSIMM, Chief Operating Officer for Roxgold Inc., and Craig Richards P. Eng, Principal Mining Engineer for Roxgold Inc., are Qualified Persons within the meaning of National Instrument 43-101, and have verified and approved the technical data disclosed in this press release.

About Roxgold

Roxgold is a gold mining company with its key asset, the high grade Yaramoko Gold Mine, located in the Houndé greenstone region of Burkina Faso, West Africa. Roxgold trades on the TSX Venture Exchange under the symbol ROG and as part of the Nasdaq International Designation program with the symbol OTC: ROGFF.

"Neither 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."

These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves, the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Yaramoko Gold Project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, including the approval of the TSX Venture Exchange for the balance of the AUMS Mining Contract Option, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: changes in market conditions, unsuccessful exploration results, changes in the price of gold, unanticipated changes in key management personnel and general economic conditions. Mining exploration and development is an inherently risky business. Accordingly, actual events may differ materially from those projected in the forward-looking statements. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

SOURCE Roxgold Inc.