Gold-Ore Resources Ltd.
TSX VENTURE : GOZ

Gold-Ore Resources Ltd.

July 16, 2009 09:30 ET

Gold-Ore Announces Second Quarter Profit of $1.63 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2009) - Gold-Ore Resources Ltd. (the "Company" or "Gold-Ore") (TSX VENTURE:GOZ) is pleased to report a profit of $1.63 million for the second quarter 2009 (the period ending May 31, 2009), bringing the first six months earnings to over $6.0 million. "The Bjorkdal operation continues to generate significant cash flow for the Company. During the second quarter the plant was shut down for 10 days as we completed planned annual maintenance, repairs and the installation of upgrades to the control systems. Even with this interruption in production, the Company enjoyed a profitable quarter. With the improvements and repairs completed in the plant, the third quarter is expected to demonstrate a considerable improvement in production," states Chairman Glen Dickson.

Second Quarter Highlights

- Revenues of $8.92 million

- Operating cash flow of $3.07 million or $0.04 per share

- Earnings for the second quarter of $1.63 million or $0.02 per share

- Cash on hand as of the end of the quarter of $6.14 million and working capital of $6.51 million

- Gold production of 8,129 ounces (252.9 kilograms)

- 100% of plant feed supplied from newly mined open pit and underground material

- Realized gold price of US$926 per ounce

Second Quarter Production Summary



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Three Months Ended Six Months Ended
May 31, 2009 May 31, 2009
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Tonnes processed 233,162 491,450
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Daily throughput - tonnes 2,843 2,857
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Head Grade grams/tonne 1.17 1.28
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Gold recovered - ounces 8,129 18,490
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- kilograms 252.9 575.2
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Average plant recovery 89% 89.8%
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During the second quarter, 55% of the material processed in the plant was mined from underground and 45% was mined from open pit. The Company has implemented an expansion program for both open pit and underground mining and continues to target an annualized rate of 50,000 ounces per year. Total cash costs during the second quarter was US$640 per ounce, higher than anticipated due to the impact of the planned annual plant maintenance shut down and a mechanical problem with part of the grinding circuit which reduced daily throughput for part of the quarter. This problem has been repaired and the plant is now operating at normal daily capacity.

To view the Ounces Gold/Quarter Bar Graph accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/goz716.jpg

Exploration

The Company continues to conduct diamond drill programs at Bjorkdal and nearby properties. Underground diamond drilling aimed at expanding resources continued throughout the quarter. Surface exploration drilling was initiated at the Ronnberget property in late May. Results of these programs will be released during the third quarter.

The Company's unaudited consolidated financial statements and management's discussion and analysis for the second quarter ended May 31, 2009 are available at www.sedar.com or on the Company's website at www.goldoreresources.com. All figures are in Canadian dollars unless otherwise specified.

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.

News Release 09-11

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