Ressources Appalaches Inc.
TSX VENTURE : APP
FRANKFURT : OU3

Ressources Appalaches Inc.

October 03, 2014 11:57 ET

Ressources Appalaches: Dufferin Mine in Temporary Care and Maintenance

RIMOUSKI, QUEBEC--(Marketwired - Oct. 3, 2014) - Ressources Appalaches (TSX VENTURE:APP)(FRANKFURT:OU3) announces that the Dufferin Gold Mine is placed in temporary care and maintenance due to longer than expected development of the underground workings and delays in reaching commercial production. The delays occurred as a result of multiple problems including, underground transformer installation, mobile equipment breakdowns and the cone crusher breakdown. This has resulted in working capital deficiency which has negatively impacted the ability to continue operations to bring all four veins available in production. During the ramp up period from June-September 2014, the Company has milled a total of 17,000 tonnes in 82 days and sold to date 675 ounces of gold in dore bar coming from gravity process only. Filtration and bagging of the flotation gold concentrate is in process as is milling a remaining stockpile of mined ore.

The first step in this process is a temporary layoff of 57 employees to reduce the overall manpower while we continue short time mill operation and keep the mine ready to restart rapidly. In the coming weeks, we will be working closely with our lenders, suppliers and customers to develop a longer term strategy and mining plan to resume operation. The Company has already been in discussions with its secured lender, Lascaux Resource Capital Fund I LP. who has indicated its support for the planned care and maintenance with a goal of restart of operations. There are ongoing discussions to formalize this support which is expected to include revising the required delivery of gold ounces and providing a short-term bridge loan to support temporary care and maintenance activities while the Company finds additional sources of capital to restart operations.

The company also announces that John A. Thomas resign as a director of the company. During his two years tenure as director, Mr Thomas was instrumental in guiding the development of the company's Dufferin Mine project. The company is grateful for the direction and guidance that has been provided and wishes him well in his future project.

About Ressources Appalaches

Since it was created in 1994, the goal of Ressources Appalaches has been to discover and develop deposits of base and precious metals in Canada with an expertise targeted towards the Appalachian geological formation in Québec and Nova Scotia. The Company is mainly focused on the exploration and development of the Dufferin Gold Mine in Nova Scotia.

Photos of the Dufferin Mine and its facilities are available on the Company's website at:
www.ressourcesappalaches.com.

The contents of this press release were prepared and reviewed by Alain Hupé, Eng. a Qualified Person as defined in NI 43-101. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts any responsibility for the adequacy or accuracy of this release.

This press release may contain certain forward-looking statements that include elements of risk and uncertainty. Consequently, actual results may differ substantially from those anticipated in such statements. These risks and uncertainties are described in the quarterly and annual reports, and in the documents submitted to the securities administration.

Contact Information