NWM Mining reports a net income of $881,003 for Q3. 2012
29.11.2012 | CNW
TORONTO, Nov. 29, 2012 /CNW/ - NWM Mining Corporation (the "Company" TSX-V: NWM) is pleased to report an operating profit of $21,003 (net income $881,003) for the quarter ended September 30, 2012.Q3. 2012 highlights:
- Gold and silver revenues during the quarter amounted to $7,175,710.
- The Company produced 4,329 ounces of gold in the third quarter.
- Pre-stripping was completed during the quarter on a number of key areas of the mine.
- The strip ratio rose to 3.27:1 as the company completed waste stripping on the pit extension and in areas that were required to have over burden removed prior to accessing mineable ores. The Life of Mine strip ratio for Lluvia de Oro is just under 1.4:1 and the waste to ore stripping ratio will revert towards the Life of Mine average in subsequent quarters which is expected to improve the economics of mining going forward.
Summarized interim financial and operating results for the quarter were as follows:
| Three months ended | Nine months ended | |||
| September 30, 2012 | September 30, 2011 | September 30, 2012 | September 30, 2011 | |
| Gold produced (oz) | 4,329 | 2,846 | 13,919 | 913 |
| Gold sold (oz) | 4,728 | 2,454 | 14,028 | 921 |
| Average realized gold price (US$/oz) | 1,668 | 1,753 | 1,640 | 1,612 |
| Average gold price (London PM Fix) (US$/oz) | 1,652 | 1,708 | 1,652 | 1,535 |
| Cash cost per gold ounce ($/oz) | 1,121 | n/a | 863 | n/a |
| Metal revenues ($) | 7,175,710 | n/a | 21,756,163 | n/a |
| Profit from operations ($) | 21,003 | (2,246,485) | 3,993,593 | (5,271,119) |
| Earnings ($) | 881,003 | (2,246,356) | 3,993,593 | (5,266,327) |
| Earnings per share, basic ($) | 0.002 | (0.005) | 0.008 | (0.013) |
| Earnings per share, diluted ($) | 0.002 | (0.005) | 0.008 | (0.013) |
| Cash from operations ($) | 2,068,251 | (735,212) | 6,283,208 | (2,718,338) |
| Total assets ($) | 54,525,860 | 40,957,516 | 54,525,860 | 40,957,516 |
Summarized production statistics for the quarter were as follows:
| Three months ended September 30 | Nine months ended September 30 | |||
| 2012 | 2011 (Pre-production) | 2012 | 2011 (Pre-production) | |
| Ore mined (tonnes) | 659,726 | 851,265 | 2,118,125 | 1,704,943 |
| Average ore mined grade (g/t Au) | 0.37 | 0.56 | 0.39 | 0.52 |
| Waste mined (t) | 2,155,604 | 859,485 | 3,663,669 | 2,535,029 |
| Total mined (t) | 2,815,330 | 1,710,750 | 5,781,794 | 4,239,972 |
| Strip ratio | 3.27 | 1.01 | 1.73 | 1.49 |
| Total days in period | 92 | 91 | 273 | 273 |
| Average ore mined per day (t/d) | 7,171 | 9,355 | 7,759 | 6,2456 |
| Gold produced (oz) | 4,329 | 2,846 | 13,919 | 3,759 |
"We are pleased with the results of the third quarter of commercial gold production at Lluvia de Oro. NWM remained profitable despite undertaking a significant amount of waste stripping. A reversion to lower strip ratios in subsequent quarters will assist in yielding higher profitability going forward. The waste to ore stripping ratio for the quarter averaged 3.27:1 where the Life of Mine average for Lluvia de Oro is closer to1.4:1," stated Chris Berlet, CEO of NWM.
NWM is an emerging gold producer with two currently defined ore bodies containing NI 43-101 compliant gold reserves and resources. The Company is focused on demonstrating profitable operations at the Lluvia de Oro and La Jojoba gold mines, and on growing reserves and resources through exploration.
For more information please see NWM's website at www.nwmcorp.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release
SOURCE NWM Mining Corporation
NWM Mining Corporation
Chris Berlet, President & CEO or Chris Chadder, CFO
Phone: 416-364-6799
Fax: 416-364-2595
info@nwmcorp.ca