QMX Gold Corporation
TSX VENTURE : QMX

QMX Gold Corporation

February 25, 2014 07:00 ET

QMX Gold Produces Over 22,000 Ounces of Gold in 2013 from Lac Herbin Mine

Company expects production of 16,500 to 19,000 in 2014

TORONTO, ONTARIO--(Marketwired - Feb. 25, 2014) - QMX GOLD CORPORATION (TSX VENTURE:QMX) ("QMX Gold" or the "Company") produced approximately 7,260 ounces of gold from its Lac Herbin Mine in Val D'Or, Quebec in the fourth quarter of 2013. This brings total production for 2013 to over 22,200 ounces of gold, in line with Company guidance. Full financial details will be released in March 2014.

Production Summary for 2013
Quarter Q1 Q2 Q3 Q4 Total 2013
Tons Milled (mt) 33,866 39,667 40,403 59,791 173,727
Grade (g/mt) 4.09 4.42 4.62 4.03 4.27
Average Recovery Rate 93.0 % 93.5 % 92.6 % 93.7 93.2 %
Recovered Gold (oz) 4,141 5,275 5,549 7,260 22,225

2013 Production Results

The Aurbel Mill continued to generate positive and consistent results in 2013 with an overall annual average recovery rate of 93.2% and was achieved with a significant increase in the mill throughput quarter over quarter. Over the course of 2013, the mill processed a total of 173,727 tonnes of ore at an average grade of 4.27 g/t to produce 22,225 ounces of gold. The production figures do not include an additional 10,000 tonnes of ore that were custom milled under the milling agreement with Armistice Resources (now renamed Kerr Mines Inc.) in the third quarter.

Fourth Quarter Production Results

In the fourth quarter of 2013, mill throughput was 77% higher than in the first quarter of the same year, processing 59,791 tonnes of ore at an average grade of 4.03 g/t Au with recoveries of 93.7% to produce 7,260 ounces of gold. The mill throughput increase was a result of producing from larger zones, which were developed by the operating team over the last year, at slightly lower than average grades.

Operational Outlook

QMX Gold continues to mine out the Lac Herbin mine above the 42 Level as a suspension of development and exploration activities remains in place. The Company plans to to process ore at the Aurbel Mill for Kerr Mines Inc. under the custom milling agreement signed in June 2013. QMX Gold intends to process at least an additional 20,000 tonnes of ore under the agreement. The Company continues to search for additional feed to maintain operation at its Aurbel mill.

Also, the Company is continuing to evaluate several projects within a 150 kilometer radius from Aurbel mill which could be put in production in the short to medium term.

The sale of QMX Gold's Snow Lake property to Northern Sun Mining Corp. remains pending and is expected to close on or before March 31, 2014.

Brett New, President and CEO of QMX Gold, commented "I am pleased to report that our year-end results are in line with 2013 budgeted figures as we produced between 20,500 and 23,500 ounces of gold at the Aurbel Mill. The team at Lac Herbin and the Aurbel Mill have done an excellent job at keeping operations running smoothly and efficiently, despite a number of cost-reduction measures that were necessary over the course of 2013. This can be seen as our mill recovery rates have remained very consistent throughout 2013. The Company plans to continue to mine out the mineralized lenses above the 42 Level in 2014 and expects production to be 16,500 to 19,000 ounces of gold in 2014."

Qualified Person

Technical programs and information included in this release have been reviewed and approved by Patrick Sévigny, eng., Vice President of Quebec Operations and a Qualified Person as defined under NI 43-101.

Cautionary Note Regarding Forward-Looking Information and Mineral Resources:

This press release contains or may be deemed to contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements (express or implied) relating to financial results, production results and/or the impact of such production results with respect to the mine at Lac Herbin, the timing, cost and/or amount of future exploration and development of the property, if any, the closing of the Snow Lake sale transaction, the processing of more custom mill feed, the timing, cost and/or amount of future production, the future price of gold or other minerals, the mineral resource estimates, the successful implementation of development plans at any of the Company's properties and/or the future financial or operating performance of QMX Gold, its properties and/or its projects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, its properties and/or its projects to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the annual information form of the Company, which is available under the profile of the Company on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause 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. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. It should also be noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.

Contact Information

  • QMX Gold Corporation
    Brett New
    President and CEO
    (416) 861-5904

    QMX Gold Corporation
    Louis Baribeau
    Public Relations
    (514) 667-2304

    QMX Gold Corporation
    Rob Hopkins
    Investor Relations
    (416) 861-5899

    QMX Gold Corporation
    Toll free: +1 877-717-3027
    info@qmxgold.ca
    www.qmxgold.ca