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NWM reports a net income of $881,003 for Q3. 2012
By PR Newswire
Article Rating:
November 29, 2012 11:25 AM EST
 
  

TSX Venture Exchange
Symbol: NWM

TORONTO, Nov. 29, 2012 /CNW/ - NWM Mining Corporation (the "Company" TSX-V: NWM) is pleased to report an operating profit of $21,003 (net income $881,003) for the quarter ended September 30, 2012.

Q3. 2012 highlights:

  • Gold and silver revenues during the quarter amounted to $7,175,710.
  • The Company produced 4,329 ounces of gold in the third quarter.
  • Pre-stripping was completed during the quarter on a number of key areas of the mine.
  • The strip ratio rose to 3.27:1 as the company completed waste stripping on the pit extension and in areas that were required to have over burden removed prior to accessing mineable ores. The Life of Mine strip ratio for Lluvia de Oro is just under 1.4:1 and the waste to ore stripping ratio will revert towards the Life of Mine average in subsequent quarters which is expected to improve the economics of mining going forward.

Summarized interim financial and operating results for the quarter were as follows:

  Three months ended Nine months ended
  September 30,
2012 		September 30,
2011 		September 30,
2012 		September 30,
2011
Gold produced (oz) 4,329 2,846 13,919 913
Gold sold (oz) 4,728 2,454 14,028 921
Average realized gold price (US$/oz) 1,668 1,753 1,640 1,612
Average gold price (London PM Fix) (US$/oz) 1,652 1,708 1,652 1,535
Cash cost per gold ounce ($/oz) 1,121 n/a 863 n/a
Metal revenues ($) 7,175,710 n/a 21,756,163 n/a
Profit from operations ($) 21,003 (2,246,485) 3,993,593 (5,271,119)
Earnings ($) 881,003 (2,246,356) 3,993,593 (5,266,327)
Earnings per share, basic ($) 0.002 (0.005) 0.008 (0.013)
Earnings per share, diluted ($) 0.002 (0.005) 0.008 (0.013)
Cash from operations ($) 2,068,251 (735,212) 6,283,208 (2,718,338)
Total assets ($) 54,525,860 40,957,516 54,525,860 40,957,516

Summarized production statistics for the quarter were as follows:

  Three months ended September 30 Nine months ended September 30
  2012 2011
(Pre-production) 		2012 2011
(Pre-production)
Ore mined (tonnes) 659,726 851,265 2,118,125 1,704,943
Average ore mined grade (g/t Au) 0.37 0.56 0.39 0.52
Waste mined (t) 2,155,604 859,485 3,663,669 2,535,029
Total mined (t) 2,815,330 1,710,750 5,781,794 4,239,972
Strip ratio 3.27 1.01 1.73 1.49
Total days in period 92 91 273 273
Average ore mined per day (t/d) 7,171 9,355 7,759 6,2456
Gold produced (oz) 4,329 2,846 13,919 3,759

"We are pleased with the results of the third quarter of commercial gold production at Lluvia de Oro. NWM remained profitable despite undertaking a significant amount of waste stripping. A reversion to lower strip ratios in subsequent quarters will assist in yielding higher profitability going forward. The waste to ore stripping ratio for the quarter averaged 3.27:1 where the Life of Mine average for Lluvia de Oro is closer to1.4:1," stated Chris Berlet, CEO of NWM.

NWM is an emerging gold producer with two currently defined ore bodies containing NI 43-101 compliant gold reserves and resources. The Company is focused on demonstrating profitable operations at the Lluvia de Oro and La Jojoba gold mines, and on growing reserves and resources through exploration.

For more information please see NWM's website at www.nwmcorp.ca

Neither the 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 of this release

SOURCE NWM Mining Corporation

Published November 29, 2012
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