Updated Open Pit

Gold Production

Fiscal 2024 GOLD PRODUCTION 

Key highlights for year-end 2024 include:

  • Milestone financial metrics: For the year ended August 31, 2024, the Company poured 19,389 ounces of gold (2023: 20,759 ounces), in line with revised full year production guidance, and sold 19,075 ounces of gold (2023: 20,864 ounces). This resulted in full year record revenue of $41.2 million (2023: $38.3 million), gross profit of $17.9 million (44%) (2023: $18.2 million, 47%), operating cashflow of $15.3 million (2023: $17.4 million) and record adjusted EBITDA1 of $15.3 million (2023: $13.7 million).
  • During Q4 2024, the Company poured 5,767 ounces of gold (Q4 2023: 4,965 ounces) and sold 5,715 (Q4 2023: 4,796) ounces of gold at an average realized price (net)1 of $2,412 per ounce (Q4 2023: $1,936 per ounce), recognizing revenue of $13.6 million, gross profit of $6.6 million (48%), operating cashflow of $6.0 million and adjusted EBITDA1 of $6.2 million. The increase in revenue, gross profit and Adjusted EBITDA1 compared to the prior year comparative period is primarily related to higher gold production from the expanded 2,000 tpd processing plant, and a higher average realized gold price.
  • Newly expanded 2,000 tpd mill online and optimization underway: The newly expanded mill was fully commissioned at the end of fiscal 2024. The processing plant has been consistently achieving, on average, 1,938 tpd of mill throughput following full plant commissioning, reaching a maximum of 2,016 tpd, a 149% increase over Q3 2024. Following completion of the expanded plant, Q4 2024 production increased by 25% over the prior quarter to 5,767 ounces, mainly due to the increase in processing plant throughput. As part of an initial phase of the plant expansion project, the Company completed construction of a new crushing circuit, during Q3 2024. The expanded crushing system is fully commissioned and has been consistently achieving an average of 2,324 tpd of crushed material over Q4 2024, reaching a maximum of 3,302 tpd. The new crushing plant, combined with the old crushing circuit, is rated to process 3,600 to 4,800 tpd of ore at full capacity. This new circuit is expected to help drive increased throughput and demonstrates the Company’s overall design philosophy of simplicity, redundancy, and durability making it a key component to support future growth. We continue to work on optimizing and modernizing our facilities in order to become more efficient.
  • Successful studies that support future production growth: Subsequent to August 31, 2024, the Company announced completion of its high-priority metallurgical variability study at Buckreef Gold, with results confirming what was expected: a finer grind size leads to a higher gold recovery, as gold recovery rates increase from 81.2% to 92.5%, as the ore grind becomes finer. Furthermore, Buckreef Gold is experiencing a relatively consistent tailings grade, regardless of head grade, at a grind size of 80% – 75 μm, further supporting the fact that increased grinding should lead to higher recovery rates. The Company is currently in the process of developing finer grinding initiatives to achieve higher gold recoveries as soon as possible.
  • An important gold discovery and best drill results EVER: Subsequent to August 31, 2024, the Company announced the discovery of a promising new gold mineralization shear zone, named the “Stamford Bridge Zone” at which current drill results are revealing geological characteristics and mineral alterations similar to that at Buckreef’s Main Zone (and location of the open pit operation). Buckreef’s best drill hole intercepts ever, on a gtm basis, BMDD315 and BMDD310, are located along the Stamford Bridge Zone, approximately 250 m east of the Buckreef Main Zone, host to Buckreef Gold’s 2M+ ounce Au Mineral Resource . Hole BMDD310 intersecting 35.5 m @ 5.48 g/t Au (194.54 gtm) from 64 m. BMDD315 intersected 37 m @ 6.86 g/t Au (253.82 gtm) from 130 m. The Company expects to substantially increase exploration drilling in F2025, with a focus on high-priority gold zones, such as Stamford Bridge, as well as Buckreef Main, Buckreef West, Anfield and Eastern Porphyry.

FISCAL 2025 OUTLOOK – EXPECTED INCREASE IN ANNUAL GOLD PRODUCTION

  • F2025 gold production is expected to be higher than F2024 levels, reflecting a full year of operations from the expanded 2,000 tpd processing plant. The Company updated its mine sequence for 2025 to include a waste stripping campaign which is scheduled to take place in H1 2025 in order to access high-grade ore blocks, not previously accessible. These high-grade ore blocks are expected to become accessible in the second half of F2025, benefiting production starting in Q3 and Q4 2025. As a result, gold production is expected to be lower in H1 2025 and higher production is expected in H2 2025. Cash cost per ounce[1] is expected to remain in line with F2024 levels. Cash cost per ounce3 is expected to be slightly higher in H1 2025 and lower in H2 2025, as the mine sequence begins to access higher grade ore blocks in H2 2025.
  • Operating cash flow will be predominantly reinvested in the Company with a focus on value enhancing activities, including: (i) increased exploration and drilling with a focus on potential Mineral Resource expansion at Stamford Bridge, Buckreef Main (northeast and south), Buckreef West, Anfield, Eastern Porphyry extension; (ii) additional capital programs focused on plant optimizations, recovery improvements and production growth; and (iii) enhanced CSR/ESG programs.

1 Refer to “Non-IFRS Performance Measures” section. 2 See Forward Looking and Cautionary Statements.