Gold-Ore Resources Ltd.
TSX VENTURE : GOZ

Gold-Ore Resources Ltd.

October 30, 2009 17:17 ET

Gold-Ore Reports Third Quarter Financial and Operational Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 30, 2009) - Gold–Ore Resources Ltd. (the "Company") (TSX VENTURE:GOZ) reports financial and operational highlights for the period ending August 31, 2009 (Third Quarter 2009). 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.goldoreresources.com.

Financial Highlights for the Third Quarter 2009 and Year-To-Date 2009

  • Revenues of $8.4 million for the quarter and $29.3 million year-to-date
  • Operating cash flow of $220 thousand ($0.00 per share) for the quarter and $8.5 million ($0.10 per share) year-to-date
  • Net loss for the quarter of $1.0 million ($0.01 per share) and net earnings of $5.0 million ($0.06 per share) year-to-date
  • Realized gold price of US$907 per ounce for the quarter and US$934 per ounce year-to-date
  • Total cash costs of US$862 per ounce for the quarter and US$653 per ounce year-to-date
  • Cash on hand of $3.8 million at the end of the quarter and $4.9 million in working capital

Operational Highlights for the Third Quarter 2009 and Year-To-Date 2009

  • Processed 279,815 tonnes in the quarter and 771,273 tonnes year-to-date
  • Daily plant throughput of 3,041 tonnes for the quarter and 2,921 tonnes year-to-date
  • Gold head grade of 1.06 grams/tonne for the quarter and 1.22 grams/tonne year-to-date
  • Recovered 8,348 ounces (259.6 kilograms) of gold in the quarter and 26,838 ounces (834.7 kilograms) of gold year-to-date
  • Plant recovery 87.4% for the quarter and 88.9% year-to-date

During the reporting period the Company generated operating cash flow of Cdn $220,000 and a net loss of Cdn $1.0 million. This loss represents the first net loss for the Company since declaring commercial production at Bjorkdal. The loss is primarily related to lower revenues as a result of lower than anticipated grades in the open pit and underground; increased costs; and to a lesser degree, lower recoveries in the plant related to a motor failure. Management has taken corrective measures to prevent this from reoccurring in the future.

Management is working closely with the operating team at Bjorkdal to smooth out the grade variation through ore production scheduling and development planning to ensure access to higher grade zones of the orebody. As a direct result, gold production in September reached a record monthly level of 3,682 ounces. The recent addition of a new mine manager has also greatly improved mine planning and scheduling, which is a component of the optimization effort at the operation.

To view the graph accompanying this release please click on the following link: http://media3.marketwire.com/docs/1030goz.jpg

About Gold-Ore

Gold-Ore Resources is a gold mining and exploration company focused in Sweden. The Company is cash flow positive, debt-free and unhedged, and remains focused on increasing gold production from the 100% owned Bjorkdal Mine. In addition to Bjorkdal, the Company also has other assets in the country; the Ronnberget Gold Property (adjacent to Bjorkdal), the Norrliden Polymetallic Deposit and the Vallberget Polymetallic Property.

Bjorkdal property information is posted on the Company's web site at www.goldoreresources.com.

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.

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.goldoreresources.com