Louvem Mines Inc. (TSX VENTURE: LOV), ("Louvem" or "the Company"),
announces its financial results for the fourth quarter and year
ended December 31, 2009, as well as updated Reserve and Resource
estimates. Financial results are based on Canadian GAAP and dollar
amounts are reported in Canadian currency, unless otherwise noted.
"While our full year gold sales from the Beaufor Mine of 20,854
ounces, which translated into 10,427 ounces at Louvem, were in line
with management's revised target of 20,000 ounces, as a Company we
are disappointed with this year's results. Grades in the room and
pillar stopes at the mine were significantly lower than expected in
2009, resulting in lower production and higher operating costs, a
fact that emphasizes the need for continued exploration efforts on
this property" commented Mr. Martin Rivard, President and CEO of
Louvem Mines. "In Q4 2009, the Company initiated a 6,600 metre
surface drilling program that identified one promising zone called
Zone 350. More drilling is planned in 2010 to further evaluate the
potential of this zone and other targeted areas at Beaufor. The
Company remains committed to Beaufor, and expects these efforts to
translate into improved results at this mine going forward."
2009 Fourth Quarter Results
Revenues for the fourth quarter of 2009 were $2,608,501 compared
with $4,004,653 for the same period in 2008, reflecting a decline
in the number of ounces of gold sold, partially offset by a 25%
increase in the average selling price per ounce, in Canadian
dollars. A total of 2,150 ounces of gold were sold at an average
price of US$1,060 (CAN$1,211) in the fourth quarter of 2009, versus
gold sales of 4,101 ounces at an average price of US$908 (CAN$968)
in the comparable period in 2008.
Operating costs for the fourth quarter of 2009 were $2,234,563
compared with $2,462,086 in the same period in 2008. The cash cost
per ounce of gold sold rose significantly to US$910 in the fourth
quarter compared with US$563 for the corresponding period last
year. The increase is mainly attributable to lower tonnage levels
and a lower recovered grade of 5.97 g/t in the fourth quarter of
2009 versus 8.41 g/t in the prior year, which reflected
disappointing results from room and pillar stopes during the
quarter.
The Company posted a net loss of ($156,673), or ($0.01) per
share in the fourth quarter of 2009, compared with a profit of
$422,611, or $0.02 per share for the same period in 2008. The
difference is primarily attributable to a lower profit margin from
the Company's mining operations, which totalled $368,304 during the
fourth quarter of 2009 compared with $1,506,656 during the same
period in 2008. This reflected a decline in the number of ounces of
gold sold, partially offset by an increase in the average sales
price per ounce of gold achieved in the quarter.
During the fourth quarter of 2009, 22,412 tonnes of ore from the
Beaufor Mine were processed at an average recovered grade of 5.97
g/t, and 4,300 ounces of gold were sold at an average price of
US$1,060 (CAN$1,211) per ounce, Louvem's share was 2,150 ounces. In
the same quarter the prior year, 30,343 tonnes of ore were
processed at an average recovered grade of 8.41 g/t, and 8,201
ounces of gold were sold at an average price of US$908 (CAN$968)
per ounce, Louvem's share was 4,101 ounces.
Reserves and Resources Calculation
At the end of 2009, Proven and Probable Reserves at the Beaufor
Mine were estimated at 165,761 tonnes at a grade of 8.38 g/t for
44,637 ounces of gold, compared with 69,792 ounces at the end of
2008. Measured and Indicated Resources were estimated at 171,372
ounces at the end of 2009 compared with 148,000 ounces at the end
of 2008. Significant exploration below the current mining
infrastructure resulted in a major increase in Inferred Resources
which went from 154,927 ounces at the end of 2008 to 199,256 ounces
at the end of 2009. However, increases in both Measured and
Indicated Resources and Inferred Resources are all below the
existing infrastructure of the mine, and currently do not
economically justify an extension of current operations.
Approximately 25,000 to 30,000 metres of drilling is planned on
this property in 2010, reflecting the Company's continued
commitment to expanding its reserve and resource base.
Beaufor Mine (100%)
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December 31, 2009 December 31, 2008
Reserves Tonnes Grade Ounces(1) Tonnes Grade Ounces(1)
(metric) (g/t Au) (metric) (g/t Au)
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Proven 47,033 6.63 10,021 96,678 7.17 22,287
Probable 118,728 9.07 34,616 147,385 10.03 47,505
Total
Proven
and
Probable 165,761 8.38 44,637 244,063 8.89 69,792
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December 31, 2009 December 31, 2008
Resources Tonnes Grade Tonnes Grade
2 (metric) (g/t Au) Ounces(1) (metric) (g/t Au) Ounces(1)
---------------------------------------------------------------------------
Measured 96,396 5.78 17,903 101,767 5.46 17,861
Indicated 725,732 6.58 153,469 635,839 6.37 130,139
Total
Measured
and
Indicated 822,128 6.48 171,372 737,606 6.24 148,000
Inferred 919,214 6.74 199,256 655,804 7.35 154,927
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(1) Louvem's share is 50%.
(2) Resources presented in the above table are exclusive of reserves and do
not have demonstrated economic viability at this time.
Full Year 2009 Review
Precious metals revenues totalled $11,605,604 in 2009 versus
$15,537,392 in 2008, reflecting lower gold sales partially offset
by a higher average selling price per ounce. Specifically, 10,427
ounces of gold were sold at an average price of US$975 (CAN$1,113),
compared with 16,454 ounces of gold sold at an average price of
US$886 (CAN$944) in 2008.
Operating costs during 2009 totalled $8,889,844, up 5% over the
2008 level of $8,437,809, and the cash cost per ounce of gold sold
increased to US$747 in 2009 compared with US$481 in 2008. This was
mainly attributable to lower tonnage and a decline in the recovered
grade, detailed below. The Company posted a net loss of $125,530,
or nil per share for the year ended December 31, 2009, versus a
profit of $3,182,904, or $0.12 per share for the comparable period
in 2008.
In 2009, 101,593 tonnes of ore were processed from the Beaufor
Mine at an average recovered grade of 6.38 g/t, and 20,854 ounces
of gold were sold at an average price of US$975 (CAN$1,113) per
ounce, Louvem's share was 10,427. In the same period the prior
year, total ore tonnage from the Beaufor Mine was 115,674, the
average recovered grade was 8.85 g/t, and 32,908 ounces of gold
were sold at an average price of US$886 (CAN$944) per ounce, of
which Louvem's share was 16,454 ounces.
Outlook
Production at the Beaufor Mine in 2010 is expected to be
approximately 20,000 ounces of gold (Louvem's share 10,000 ounces).
The Company is planning 25,000 - 30,000 metres of drilling in 2010
to evaluate the potential of several previously identified zones.
The Company has no hedging contracts on gold and currency. Louvem
currently has cash and cash equivalents of $5,495,088 and no long
term debt.
Martin Rivard
President and Chief Executive Officer
About Louvem Mines Inc.
The Company has a 50% interest in the Beaufor Mine and owns
other exploration properties located near Val-d'Or, in
north-western Quebec, Canada. More information on Louvem Mines can
be found on its website at: www.louvem.com.
Forward-Looking Statements
This news release contains forward-looking statements that
include risks and uncertainties. When used in this news release,
the words "project", "expect", "may" and similar expressions, as
well as "will" and other indications of future tense, are intended
to identify forward-looking statements. The forward-looking
statements are based on current expectations and apply only as of
the date on which they were made. The factors that could cause
actual results to differ materially from those indicated in such
forward-looking statements include changes in the prevailing price
of gold, the Canadian-United States exchange rate, grade of ore
mined and unforeseen difficulties in mining operations that could
affect revenues and production costs. Other factors such as
uncertainties regarding government regulations could also affect
the results. Other risks may be set out in Louvem's Annual
Information Form, Annual Reports and periodic reports.
National Instrument 43-101 (NI 43-101)
The reserve and resource calculation of the Beaufor Mine
property as of December 31, 2009 and December 31, 2008 was prepared
by Mr. Richard Dubuc, P.Geo., and Mr. Jessy Thelland, B.Sc., Geo.,
employees of Richmont Mines Inc. (the operator of the Beaufor
Mine), and qualified persons under the terms of this instrument,
and was supervised by Mr. Daniel Adam, Geo., Ph.D., Exploration
Director, an employee of Richmont Mines Inc. The reserve
calculations were prepared using a gold price of US$785 (CAN$785)
for 2008 and US$850 (CAN$850) for 2009.
KEY FINANCIAL DATA
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Three-month period Fiscal year
ended December 31 ended December 31
CAN$ 2009 2008 2009 2008
----------------------------------------------------------------------------
Results ($)
Revenues 2,608,501 4,004,653 11,652,780 15,637,679
Net earnings (loss) (156,673) 422,611 (125,530) 3,182,904
Cash flow from (used in) (252,210) 5,532,065
operations 4,550 1,256,863
Results per share ($)
Net earnings (loss) basic (0.01) 0.02 - 0.12
Weighted average number of
common
shares outstanding 25,929,689 25,929,689 25,929,689 25,929,689
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December 31, 2009 December 31, 2008
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Financial position ($)
Total assets 8,330,756 9,281,325
Working capital 5,193,254 5,468,777
Long term debt - -
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SALES AND PRODUCTION DATA
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Three-month period Fiscal Year ended
Beaufor Mine - 50% ended December 31 December 31
----------------------------------------------------------------------------
2009 2008 2009 2008
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Gold sales (ounces) 2,150 4,101 10,427 16,454
Production of gold (ounces) 2,146 3,814 9,613 17,177
Cash cost (per ounce sold) (US$) 910 563 747 481
Cash cost (per ounce sold) (CAN$) 1,039 600 853 513
Average selling price (per ounce of
gold) (US$) 1,060 908 975 886
Average selling price (per ounce of
gold) (CAN$) 1,211 968 1,113 944
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Average exchange rate used for 2009: US$1 = CAN$1.1420
Average exchange rate used for 2008: US$1 = CAN$1.0660
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Louvem Mines Inc. Jennifer Aitken Investor Relations
514-397-1448 514-397-8620 (FAX) www.louvem.com
Louvem Mines Inc. (TSXV:LOV)
過去 株価チャート
から 6 2024 まで 7 2024
Louvem Mines Inc. (TSXV:LOV)
過去 株価チャート
から 7 2023 まで 7 2024
