SYS-CON MEDIA Authors: Elizabeth White, Pat Romanski, Carmen Gonzalez, Liz McMillan, Kevin Jackson

News Feed Item

True Gold Mining Reports Year End Financial Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/29/14 -- True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is pleased to announce financial results for the year ended December 31, 2013 and business highlights to date.

"True Gold finished 2013 in a very strong position," stated Dwayne Melrose, True Gold President & CEO. "We have continued to advance our flagship Karma Project and remain on-track to build Burkina Faso's next gold mine. We have the team, key mining permits and financial strength to advance the Karma Project as scheduled and exploration results to date continue to demonstrate the potential to boost our production profile."

2013 highlights and significant events subsequent to year end include:

Karma Project continual advancement:


--  Karma Feasibility Study ("Karma FS"): 
    --  Announced a positive Feasibility Study supporting a low-cost heap
        leach mine with strong post-tax NPV (US$178.2 million), post-tax IRR
        (43.1%) and rapid payback (1.4 years) at US$1,250/oz gold. It is
        expected that the Karma Project will produce an annual average of
        97,000 ounces of gold at total cash costs of US$672/oz (see news
        release dated December 17, 2013). Probable Mineral Reserves are 33.2
        Mt @ 0.89 g/t Au containing 949.000 oz Au. 
        
--  Permitting 
    --  Received the Karma Project exploitation (mining) permit to conduct
        mining operations at the initial three deposits. 
        
    --  Submitted exploitation permit applications to extend the Karma
        Project exploitation permit to include two additional deposits. 
        
--  Project Financing: 
    --  Closed a public market bought deal financing and concurrent private
        placement with Liberty Metals & Mining Holdings, LLC, ("LMM") for
        total gross proceeds of $51.9 million (the "Offering"). These
        proceeds provide the project equity component required to develop
        and construct the Karma Project. 
        
    --  Signed an engagement letter giving Barclays Bank PLC and Societe
        Generale Corporate & Investment Banking an exclusive mandate to act
        as lead arrangers for bank debt financing for the Karma Project. 
        
--  Project Development: 
    --  Continued to strengthen our development and construction team in
        Burkina Faso with the appointment of several key positions. 
        
    --  Engaged SENET (Pty) Ltd. to complete the detailed engineering and
        design for the Karma Project with the detailed engineering expected
        to be completed by May 2014. 
        
    --  Phase 2 barrage construction is expected to be complete in May 2014.
        When finished it will support mine development, operations and
        should provide a year round water source to local communities. 
        
--  Resource Update: 
    --  Reported significant new resource north of the Kao deposit ("North
        Kao") that adds to Karma's production profile potential with 1.66
        million ounces of gold (Inferred Mineral Resource of 47.8 Mt at 1.08
        g/t Au) added, including a doubling of in-pit leachable material, or
        423 kozs of gold (16.4 Mt at 0.80 g/t Au), at Karma's largest
        deposit (Kao) (see news release dated March 13, 2014). The updated
        Karma Project mineral resource, including North Kao is as follows: 
        

----------------------------------------------------------------------------
Category                                    Indicated               Inferred
----------------------------------------------------------------------------
                                   Mt  Au g/t  Au koz     Mt  Au g/t  Au koz
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
In-Pit (shell-constrained)       75.2    1.08   2,621   65.3    1.13   2,362
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Global Mineral Inventory                                                    
 Sensitivity                     82.6    1.04   2,776     80    1.05   2,704
----------------------------------------------------------------------------
(1) The Mineral Resource estimate is quoted at the same cut-off grades and  
economic parameters for the constrained pit optimizations that were used for
mineral resources in the Karma Feasibility Study: 0.20 grams per tonne      
("g/t") gold ("Au") for Oxide, 0.22 g/t Au for Transition and 0.5 g/t Au for
Sulphide, and a gold price of US$1,557/oz (refer to NI 43-101 technical     
report "Updated Resource Estimate on the Karma Gold Project, Burkina Faso,  
West Africa", dated March 13, 2014 and filed on SEDAR on April 28, 2014).   

    --  Commenced a Preliminary Economic Assessment ("PEA") on the new
        resource to evaluate the potential economic impacts of an increased
        production profile and/or the potential to extend the mine life laid
        out in the Karma FS. The PEA is anticipated to be completed by July
        2014. 
        
    --  Reported positive drilling results at priority targets that expand
        and demonstrate continuity of gold mineralization and the potential
        to add more near-surface leachable material within the Karma
        Project. 

Strengthened our treasury through several strategic financings with cornerstone investors:


--  Over the past 12 months the Company has raised an aggregate of $85.4
    million to fund development and construction activities at the Karma
    Project, exploration activities at the Company's mineral projects and
    for general and administrative and working capital purposes: 
    
    --  In addition to the February 2014 $51.9 million Offering, the Company
        raised $23.5 million from LMM in August 2013 and completed a $10
        million financing from Teck Resources Ltd. in May 2013. 
        
    --  Cash and short term investments as at December 31, 2013 totaled
        $23.8 million with $62.0 million of cash and short term investments
        as of the date hereof. 

SELECTED FINANCIAL DATA

The following financial data are derived from our audited consolidated financial statements for the year ended December 31, 2013 and the 14 month period ended December 31, 2012, as prepared in accordance with International Financial Reporting Standards.

In December 2012 the Company changed its financial year-end from October 31 to December 31 in order to align the Company's year-end with that of its subsidiaries, which operate on a calendar fiscal-year. As a result of changing the Company's year-end, the current reporting period is for the 12 months ended December 31, 2013, with the comparative period being the 14 months ended December 31, 2012.

For the year ended December 31, 2013, in order to enhance the relevance to the decision making needs of users, the Company has voluntarily changed its accounting policy with respect to exploration and evaluation expenditures. In prior periods the Company's policy was to capitalize by property all costs related to exploration and evaluation of mineral properties classified as exploration and evaluation assets. The Company has elected to change this accounting policy to now expense exploration expenditures as incurred, effective with the presentation of the audited consolidated financial statements for the year ended December 31, 2013, on a retrospective basis. The Company will continue to defer acquisition expenditures on mineral properties until such time as the properties are put into commercial production, sold, abandoned or become impaired.


                                              Year Ended    14 months Ended 
                                        December 31, 2013 December 31, 2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net loss for the period                   $   (32,781,539)  $   (37,111,719)
Comprehensive loss for the period         $   (33,139,791)  $   (37,141,990)
Loss per share - basic and diluted        $         (0.15)  $         (0.29)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                       As at
                                               December 31       December 31
                                                      2013              2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash and short term investments           $     23,761,331  $     18,889,633
Working capital                           $     21,189,672  $     16,878,957
Total assets                              $     42,758,028  $     45,511,040
Current liabilities                       $      3,162,074  $      2,584,366
Non-current liabilities                   $            nil  $            nil
Shareholders' equity                      $     39,595,954  $     42,926,674
----------------------------------------------------------------------------
----------------------------------------------------------------------------

For the 12 month period ended December 31, 2013, we reported a net loss of $32.8 million, compared to a net loss of $37.1 for the 14 month period ended December 31, 2012. The most significant contributions to the loss for the 12 month period ended December 31, 2013 were the cost of ongoing exploration and pre-development of $20.3 million, salaries and benefits of $3.5 million and the write-down of the Ball Creek exploration and evaluation asset of $2.4 million. The primary factors to impact the $4.3 million decrease in the comprehensive loss as compared to the prior period was the write-off of the premium paid on the acquisition of Blue Gold Mining Inc. which was offset by the recovery of option payments and cost recoveries related to the properties disposed of to Roxgold.

Total assets as at December 31, 2013 have decreased since December 31, 2012 by $2.7 million to $42.8 million, mainly due to (i) the sale to LMM of a 2% net smelter return royalty on the Company's interest in the Karma Gold Project for $6.0 million, which was recorded as a recovery to acquisition costs; and (ii) the $2.4 million write down of the value of acquisition expenditures relating to the termination of the option agreement related to the Ball Creek Project. This decrease was partially offset by an increase in cash and short term investments reflecting cash inflows from financing transactions through the year ended December 31, 2013.

This press release should be read in conjunction with True Gold's audited consolidated financial statements and Management's Discussion and Analysis for the year ended December 31, 2013. These documents can be found on the Company's website (www.truegoldmining.com) or under the Company's profile on SEDAR at www.sedar.com. All amounts are presented in Canadian dollars unless otherwise stated.

Scott Heffernan, M.Sc., P.Geo., Vice President Exploration of the Company, and Peter C. Carter, P. Eng., Chief Operating Officer and Vice President Engineering of the Company, are the designated Qualified Persons within the meaning of NI 43-101 for this news release. They have reviewed and verified that the scientific and technical information contained in this release is accurate and approves of the written disclosure of same.

About True Gold

True Gold Mining Inc. is where gold comes to life. We are committed to growing a successful gold exploration, development and production company, by focusing on projects with low costs, low technical risks and solid economics. The Company's board, management and technical teams have proven track records in gold exploration, development, operations and production worldwide.

Additional information about the Company and its activities may be found on the Company's website at www.truegoldmining.com and under the Company's profile at www.sedar.com.

ON BEHALF OF THE BOARD

Dwayne Melrose, President & CEO

Neither 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 or accuracy of this release.

Unless stated otherwise, information of a scientific or technical nature in this press release regarding the Karma Project is summarized, derived or extracted from the technical report entitled "Updated Resource Estimate on the Karma Gold Project, Burkina Faso, West Africa", dated March 13, 2014 prepared by P&E Mining Consultants Inc.,and filed on SEDAR on April 28, 2014.

Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

The quantity and grade of reported Inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred mineral resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.

The mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to True Gold within the meaning of applicable securities laws, including statements with respect to the potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Karma Project, reliance on technical information provided by third parties as related to the Karma Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; satisfaction of Burkina Faso requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration, uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, accidents, equipment breakdowns, risk of undiscovered, title defects and surface access, the potential for delays in exploration and permitting activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk as well as those factors discussed in the Annual Information Form of the Company dated April 30, 2014 in the section entitled "Risk Factors", under True Gold's SEDAR profile at www.sedar.com.

Although True Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. True Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The mineral resource estimates referenced in this press release use the terms "Indicated Mineral Resources" and "Inferred Mineral Resources". While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities and Exchange Commission ("SEC"). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. True Gold is not an SEC registered company.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile ...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
Companies today struggle to manage the types and volume of data their customers and employees generate and use every day. With billions of requests daily, operational consistency can be elusive. In his session at Big Data Expo, Dave McCrory, CTO at Basho Technologies, will explore how a distributed systems solution, such as NoSQL, can give organizations the consistency and availability necessary to succeed with on-demand data, offering high availability at massive scale.
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what th...
Security can create serious friction for DevOps processes. We've come up with an approach to alleviate the friction and provide security value to DevOps teams. In her session at DevOps Summit, Shannon Lietz, Senior Manager of DevSecOps at Intuit, will discuss how DevSecOps got started and how it has evolved. Shannon Lietz has over two decades of experience pursuing next generation security solutions. She is currently the DevSecOps Leader for Intuit where she is responsible for setting and driv...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science f...
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness,...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. ...
Vormetric on Wednesday announced the results of its 2015 Insider Threat Report (ITR), conducted online on their behalf by Harris Poll and in conjunction with analyst firm Ovum in fall 2014 among 818 IT decision makers in various countries, including 408 in the United States. The report details striking findings around how U.S. and international enterprises perceive security threats, the types of employees considered most dangerous, environments at the greatest risk for data loss and the steps or...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP ...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Storage administrators find themselves walking a line between meeting employees’ demands to use public cloud storage services, and their organizations’ need to store information on-premises for security, performance, cost and compliance reasons. However, as file sharing protocols like CIFS and NFS continue to lose their relevance, simply relying only on a NAS-based environment creates inefficiencies that hurt productivity and the bottom line. IT wants to implement cloud storage it can purchase a...
Cloud Technology Partners on Wednesday announced it has been recognized by the Modern Infrastructure Impact Awards as one of the Best Amazon Web Services (AWS) Consulting Partners. Selected by the editors of TechTarget's SearchDataCenter.com, and by votes from customers and strategic channel partners, the companies acknowledged by the Modern Infrastructure Impact Awards represent the top providers of cloud consulting services for AWS including application migration, application development, inf...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.