Vancouver, British Columbia- Gold – Ore Resources Ltd. (the “Company”) announces that due to cost savings initiatives the Company Bjorkdal gold mine in Sweden, a new contractor is selected for the underground mining drift in the mine. The company has chosen to replace the existing contractor after requesting and receiving several competitive bids for the contract. It is expected that this change, along with other initiatives, will contribute to significant financial burden to reduce the operation going forward.
Bergteamet AB, the current contractor has given notice that they leave the site at the end of the month. The new contractor will begin mobilizing to the site from early September and will be at full production in the fourth quarter. Underground mining as a result will be temporarily interrupted, however, mining in open pit remain on track. The plant will remain at full capacity of 3,200 tonnes per day by working to supplement open pit material from feed stocks. Gold production in the fourth quarter is expected to be reduced from previous quarters due to lower grades in the material stored however production is expected to be even greater than 8,000 grams. The financial impact of lower sales in the quarter will be offset by the significantly lower costs associated with the processing of materials stocks, the margin per tonne of feed processed from the two sources, underground and stock are similar. Gold production for 2010 is estimated to exceed 40,000 ounces.
The new business model for underground mining in Bjorkdal, the company plans also to take responsibility for various services of the previous contractor mining, including underground services, trucking (to be provided by an independent contractor), shotcrete and stoping . Orders are now faced with several pieces of underground mining equipment. Larger items will be on a lease basis.
“This is a necessary adaptation to our Bjorkdal function as we continue to extend the life of the mine,” said Gold-Ore CEO Glen Dickson. “We expect that making the change to more of an owner-operator business model for the underground mining will help us reach our target of reducing costs to achieve cash Bjorkdal. Bergteamet I want to thank AB for the contribution they made to set up underground mining at the Bjorkdal mine and wish them every success. ”
About Gold-Ore
Gold-Ore Resources is a gold mining and exploration company currently focused on the mining Skelleftea in northern Sweden. The Company operates primary Bjorkdal Mine, which is a positive cash flow, debt-free and unhedged. In addition to Bjorkdal, the company has other assets in the district of the mineral rights to 66 square kilometers around the mine site, where an exploration program now underway, and the Norrliden Poly Metallic Deposit
For more information contact Glen Dickson, Bob Wasylyshyn or Ron Ewing please at (604) 687-8884 or Troy Winsor at 1-800-663-8072. Bjorkdal property information is posted on the website of the company www.goldoreresources.com
source:BUSINESS WIRE
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