For complete details of the unaudited Interim Consolidated Financial Statements and associated Management’s Discussion and Analysis please refer to the Company’s filings on SEDAR (www.sedar.com) or the Company’s website (www.silverbearresources.com).
Q2 2020 QUARTER HIGHLIGHTS
During the six-month period ended
- Mined a total of 75,415 tonnes of ore, processed 54,889 tonnes of ore at an average grade of 676.9 g/t of silver, producing a total of 1,034,282 ounces of silver;
- Sold a total of 1,065,378 ounces of silver totalling production revenue of
US$17,670,112 and reported a total comprehensive loss of$26,042,816 and an accumulated deficit of$204,957,472 . - On
27 May 2020 , the Group announced a further amendment to its Facilities Agreement withInflection Management Corporation Limited (“Inflection”), a major shareholder of the Group, andUnifirm Limited (“Unifirm”), an affiliate ofA.B. Aterra Resources Ltd. (“Aterra”), also a major shareholder of the Group, whereby the major shareholders agreed to a further reduction in interest payable on all funds drawn under the facilities agreement from 9% to 7% per annum (see full details below); - In late
May 2020 , the CEO stated that despite the initial delay in the final commissioning of the new X-Ray transmission (“XRT”) processing equipment due to government-mandated COVID-19 restrictions, the consultants, following a prescribed quarantine period, have completed the commissioning. The XRT equipment is now fully operational; - On
22 June 2020 , the Group announced following the receipt of the draftWardell Armstrong report (the “Draft WA Report”) based on the material change in the mineral resource estimates of both Vertikalny and Mangazeisky North deposits and scope of the project theAugust 2017 NI 43-101 technical report containing a resource update and accompanying Vertikalny feasibility study and Mangazeisky pre-feasibility study should no longer be relied upon and are withdrawn by the Group. In the statement, the Group stated that finalization of the Draft WA Report is dependent onWardell Armstrong conducting a site visit to the its mining operations, owing to government mandated COVID-19 restrictions the site visit has been delayed for an indefinite period of time, (full details are described below); and - As of the date of this report, the Group confirms there have been no major disruptions at either sites or to the Group’s planned production and operations due to the COVID-19 pandemic.
MANGAZEISKY SILVER PROJECT COMMERCIAL PRODUCTION
The Group achieved first pre-commercial silver production in
Three-months ended | Three-months ended | Six-months ended | Six-months ended | |
Operating Data | ||||
Ore Mined (tonnes) | 39,765 | 20,286 | 75,415 | 59,653 |
Ore processed (tonnes) | 29,545 | 25,565 | 54,889 | 45,194 |
Head grade (g/t Ag) | 650 | 492 | 680 | 575 |
Recovery (%) | 87 | 76.1 | 86.5 | 70.4 |
Silver ounces produced | 576,824 | 307,979 | 1,034,282 | 572,714 |
Financial Data | ||||
Silver ounces sold | 592,938 | 332,129 | 1,065,378 | 626,698 |
Average realized price (US$/oz) | 16.35 | 14.95 | 16.59 | 15.22 |
Production and pre-production revenues, US$ | 9,695,280 | 4,965,486 | 17,670,112 | 9,539,280 |
Development & Operational Activities
During the first quarter, the Group’s 2020 winter road procurement and transportation delivered approximately 14,000 tonnes of supplies, including new drill rig, excavator and the new XRT processing equipment. The winter road was closed on 30th of April this year, and accomplished delivery of all the Group’s demand for gas condensate and diesel fuel. Deliveries for the summer and fall months are now via cargo flights using the Group’s newly completed airstrip.
During the second quarter, in
As of the date of this report there are no construction contractors and approximately 194 Prognoz employees at site. There are also 44 contractors, namely catering, process consultants, and construction workers. As of
Corporate & Financing Activities
On
The Facilities Agreement Amendments are a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) because Inflection and Aterra, an affiliate of
Exploration Activities
During the second quarter 2020, the Group was working on the completion of the details of its exploration program for the upcoming exploration season. During the season the Group is planning to target extensions of existing deposits and new areas of significance with the intent to grow the Group’s resources and establish future drilling programs.
OUTLOOK FOR Q3 2020 AND REMAINDER OF YEAR
In order to fund further development operations and maintain rights under licenses and agreements, the Group has secured funding in the form of long-term loans of which the principal totals
In consideration of the Group’s going concern and following the initiation of silver production in the second quarter of 2018 and now achieving full commercial production in the third quarter of 2019 the Group’s priorities for third quarter 2020 and remainder of the year are as follows:
- Although at the date of this report COVID-19 has not materially impacted the Group’s silver production, there is no guarantee that it will not going forward, as such the forecast for the whole of 2020 has been revised to approximately 2.2 million ounces of silver;
- In Q3 2020, the Group plans to finish the development documentation for flotation and start building the foundation;
- Complete the 2020 exploration program that target extension of existing deposits and new areas of significance with the intent to grow the Group’s resources and establish future drilling programs;
- Continue to monitor all operations to further optimize operating costs and improve operational efficiencies; and
- Continue to build up operational capabilities and staffing and introduce new systems for production monitoring and management accounting.
About Silver Bear
Silver Bear (TSX: SBR) is focused on the development of its wholly-owned
Cautionary Notes
This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements, which reflect management's expectations. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, the Company cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Such risk factors include, but are not limited, to the risk factors identified by the Company in its continuous disclosure filings filed from time to time on SEDAR. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause the Company's actual results, events, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Company has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.
CONTACT INFORMATION:
President and Chief Executive Officer T: +7 985 866 8877 info@silverbearresources.com | Investor Relations Manager & Corporate Secretary T: +416 453 8818 jwebster@silverbearresources.com |
Source: Silver Bear Resources Plc
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