Roxgold Inc.
TSX VENTURE : ROG

Roxgold Inc.

May 30, 2013 06:30 ET

Roxgold Reports Financial Results for Period Ended March 31, 2013

TORONTO, ONTARIO--(Marketwired - May 30, 2013) - Roxgold Inc. ("Roxgold" or "the Company") (TSX VENTURE:ROG) wishes to announce the Company's unaudited financial results for the three months ended March 31, 2013. For complete details of the first quarter unaudited Condensed Interim Consolidated Financial Statements and associated Management's Discussion and Analysis, please see the Company's filings on SEDAR (www.sedar.com) or on the Company's web site (www.roxgold.com).

Financial Highlights:

  • Expenditures on Roxgold's flagship Yaramoko exploration property totaled over $4.1 million.
  • During the period the Company received gross proceeds of $10,481,250 and issued 14,973,214 common shares in a brokered private placement.
  • At March 31, 2013 the Company had net working capital of over $13.1 million.

Corporate Highlights:

  • On January 8, 2013, Roxgold announced additional assay results from its 2012 Yaramoko drill program and that high grade gold mineralization, including 28.02 grams per tonne ("gpt") gold over 3.2 meters in Hole 250 had been encountered to a depth of approximately 900 metres on the 55 Zone.
  • On March 4, 2013, the Company announced an updated resource estimate on the 55 Zone on the Yaramoko permit. The estimate was undertaken by AGP Mining Consultants Inc. and prepared in accordance with National Instrument 43-101 Standards for Disclosure of Mineral Properties. The estimate was based on 81,105 metres of drilling in 213 diamond drill holes. The updated resource estimate on the 55 Zone returned an Indicated resource estimate of 1,343,000 tonnes at 15.7 gpt for 679,000 contained ounces of gold and an Inferred resource estimate of 751,000 tonnes at 8.9 gpt for 216,000 contained ounces of gold, reported at a 3 grams per tonne ("g/t") gold cut-off. The full report was filed on SEDAR on April 18, 2013.

Events Subsequent to March 31, 2013

  • Roxgold announced the results of additional definition and metallurgical test drilling on the 55 Zone, regional drilling at Bagassi South and the 300 Zone as well as the completion of a 1 square kilometre Induced Polarization orientation survey over the 55 Zone.
  • On May 26, 2013, Roxgold announced it had received a three-year extension to its 100% owned Yaramoko exploration permit.

Work Planned for the Remainder of 2013:

  • Additional metallurgical and geotechnical testing of drill core from the 55 Zone;
  • Drilling of additional geochemical and geophysical targets in the Yaramoko permit area;
  • Systematic mapping and sampling of artisanal mining sites throughout the Yaramoko permit area;
  • Completion of a Preliminary Economic Assessment and continued work on environmental and social studies; and
  • Filing an application for an Exploitation Permit covering part of the Yaramoko property.

Selected Financial Data

Roxgold's net loss for the three months ended March 31, 2013 totaled $681,602 (three months ended January 31, 2012: $7,682,116). The decrease in the net loss for the current period was primarily due to a decrease in share-based payments and share units of $7,082,769. As at March 31, 2013, the Company had cash and short term investments of $14,509,860 and net working capital of $13,181,433. The primary use of cash during the three months ended March 31, 2013 was exploration and evaluation expenditures totaling $4,317,841.

The Company also announces that it has granted an employee incentive stock options to purchase up to an aggregate of 200,000 common shares exercisable on or before May 29, 2018 at a price of $0.52 per share.

About Roxgold

Roxgold is an exploration and development company with its key asset, the 167 Km2 Yaramoko exploration permit, located in the Houndé greenstone region of Burkina Faso, West Africa. Roxgold is focused on further exploring the Company's 100% owned Yaramoko permit and advancing the 55 Zone.

ON BEHALF OF ROXGOLD INC

Wayne Moorhouse, Chief Financial Officer

This news release may contain forward-looking statements. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to such future events and conditions could differ materially from those currently anticipated in such statements for many reasons such as: changes in management, changes in general economic conditions and conditions in the financial markets; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information