QMX Gold Corporation

QMX Gold Corporation

April 29, 2013 17:00 ET

QMX Produces 4,141 Ounces of Gold in the First Quarter of 2013

TORONTO, ONTARIO--(Marketwired - April 29, 2013) - QMX GOLD CORPORATION (TSX:QMX) ("QMX Gold" or the "Company") has produced 4,141 ounces of gold from the Lac Herbin mine located in Val-d'Or, Quebec. The Aurbel Mill processed 33,866 tonnes of ore with a head grade of 4.09 g/t Au and achieved an average recovery rate of 93%. Cash cost information will be released as part of the first quarter financial results expected in May.

Q1 Production Update

Production in the first quarter of 2013 saw an increase in average grade back to 4.09 g/t Au. The Aurbel mill has been increasing recoveries to more than 92%, which is in line with the average rate expected from the mill in 2013. While the level of production achieved in Q1 is slightly lower than budgeted, it was expected to be the weakest quarter as the Company transitions to newly developed zones in the coming quarters.

The Company continues to maintain annual production guidance of 20,500-23,500 ounces gold at a cost of $1,200 to $1,400 per ounce for 2013.

The management team at the Lac Herbin mine and Aurbel Mill are being diligent about controlling costs with the goal of continued profitability at the operations. In the first quarter, a cost management plan was implemented to reduce operational costs by approximately $75 per ounce of production.

François Perron, President and CEO of QMX, commented as follows in relation to these recent results: "The production results were slightly lower than projected this quarter but I am confident that we will be able to make this up in the coming quarters as we begin mining the newly developed zones. I am pleased to see milling operations improve recovery rates from the low levels experienced in the fourth quarter of 2012." Mr. Perron continued by saying: "The goal of Lac Herbin is to be profitable and our cost management plan is imperative to achieving this. The Company will continue to look for ways to further reduce costs."

About QMX Gold

QMX Gold Corporation is a Canadian publicly traded mining company focusing on mine development and exploration in Quebec and Manitoba. QMX Gold continues to operate in the Val-d'Or area with production estimated at 20,500-23,500 ounces of gold per year. The Company also owns property at the Snow Lake Mine which has a Measured and Indicated Mineral Resource of 5.4 million tonnes grading 4.45 g/t Au for approximately 720,000 oz of gold. The Snow Lake Mine is expected to produce 80,000 ounces of gold per year.

Full details of the Snow Lake Project are outlined in the Technical Report titled "Snow Lake Mine Re-activation Project" dated December 10, 2010 and prepared by: Andre Roy (Eng.) Jamie Lavigne (P.Geo), David West (P.Eng), Ian Ward (P.Eng), Matthew Parfitt (P.Eng), Mark Bednarz (P.Geo), which is available on the SEDAR profile of the Company at www.sedar.com.

Qualified Person

Technical programs and information included in this release have been reviewed and approved by Patrick Sévigny, P.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 newly developed zones, production results and/or the impact of such production guidance or results with respect to the mine at Lac Herbin, the timing, cost and/or amount of future exploration and development of the property, the timing, cost and/or amount of future production, the future price of gold or other minerals, the successful implementation of development plans or cost cutting measures 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
    Francois Perron
    President and CEO
    (416) 309-2952 or Toll free: +1 877-717-3027

    QMX Gold Corporation
    Louis Baribeau
    Public Relations
    (514) 667-2304 or Toll free: +1 877-717-3027

    QMX Gold Corporation
    Rob Hopkins
    Investor Relations
    (416) 861-5899 or Toll free: +1 877-717-3027