Gold-Ore Resources Ltd.
TSX VENTURE : GOZ

Gold-Ore Resources Ltd.

April 29, 2010 09:00 ET

Gold-Ore Reports Positive Earnings in First Quarter, 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 29, 2010) - Gold–Ore Resources Ltd. (the "Company") (TSX VENTURE:GOZ) reports financial results for the period ending February 28, 2010 (First Quarter 2010). The Company operates the 100%-owned Bjorkdal Gold Mine in Sweden. The financial results are expressed in Canadian dollars and further detail can be found in the Financial Statements and Management Discussion and Analysis filed on the Company's website at www.goldore.ca.

Financial Highlights for the First Quarter 2010

  • Revenues of $10.5 million
  • Operating cash flow of $2.9 million or $0.03 per share
  • Earnings for the period of $0.4 million or $0.00 per share
  • Investment of $1.9 million in mine development
  • Cash on hand as of the end of the period of $4.4 million and working capital of $5.2 million
  • No debt
  • Gold production of 10,065 ounces and gold sales of 10,003 ounces
  • Average realized gold price of US$1,042 per ounce; production remains un-hedged 
  • Total cash costs of US$807 per ounce

Gold-Ore Chairman Glen Dickson commented, "We are pleased that gold production has normalized at an annualized rate of 40,000 ounces per year over the last six months, and the plant is operating at capacity, over 3,000 tonnes per day fed from both the underground and open pit components of the mine. We are now focusing our efforts on the economics of the mine and looking to optimize our mining methods to improve gold grade and reduce operating costs."

Grade Increase Initiative

The underground operation at the Bjorkdal gold mine is best described as a narrow vein mine with over 45 veins identified for mining. Since narrow vein mining in Sweden is not common, the Company investigated several operations in Canada that employ narrow vein mining techniques. Some of these techniques are now being tested at Bjorkdal. Results of this initiative are expected during the next few months.

Cost Reducing Initiatives

During the last six months the staff at the Bjorkdal mine has worked on a number of initiatives to reduce costs, including exploring alternatives with suppliers and contractors. Contractors represent the single largest cost at Bjorkdal and the Company is taking a long term approach with a five year plus mine life. Gold-Ore is reviewing its options including the purchasing or leasing equipment to become more owner-operator oriented and less reliant on contractors.

To view the table associated with this press release, please click on the following link: http://media3.marketwire.com/docs/goz428.jpg

About Gold-Ore

Gold-Ore Resources is a gold mining and exploration company currently focused in the Skelleftea mining district in northern Sweden. The Company's primary asset is the Bjorkdal Mine, which is cash flow positive, debt-free and unhedged. In addition to Bjorkdal, the Company also has other assets in the district including the mineral rights to 57 square kilometres around the mine site, as well as the Norrliden Polymetallic Deposit.

Bjorkdal property information is posted on the Company's web site at www.goldore.ca

ON BEHALF OF THE BOARD

Glen Dickson, Chairman

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

News Release 10-07

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Gold-Ore Resources Ltd.
    Glen Dickson
    (604) 687-8884
    or
    Gold-Ore Resources Ltd.
    Bob Wasylyshyn
    (604) 687-8884
    or
    Gold-Ore Resources Ltd.
    Ron Ewing
    (604) 687-8884
    www.goldore.ca