Welcome!

News Feed Item

Alto Produces a Record 214,742 Ounces of Gold in 2013

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 01/21/14 -- Rio Alto Mining Limited ("Rio Alto" or the "Company") (TSX: RIO)(BVL: RIO)(NYSE: RIOM)(DBFrankfurt: MS2) is pleased to announce that its La Arena Gold Mine produced and sold a quarterly record of 70,551 ounces of gold during the three months ended December 31, 2013 (214,742 ounces of gold poured for the twelve months ended December 31, 2013 compared to guidance of 190,000 to 210,000 ounces for the year).

Ore and waste production from the La Arena Gold Mine for the fourth quarter of 2013 was:


                     Actual              Planned            Difference
                    Tonnes  Au gpt      Tonnes  Au gpt  Tonnes/Ozs   Au gpt
              --------------------------------------------------------------

Ore mined        4,077,748    0.59   3,632,000    0.61     445,748    (0.02)
Waste mined      5,163,924           5,858,000            (694,076)

Ounces poured       70,551              58,808              11,743

Production for 2013 was:


                     Actual              Planned            Difference
                    Tonnes  Au gpt      Tonnes  Au gpt  Tonnes/Ozs    Au gpt
              --------------------------------------------------------------

Ore mined       14,507,292    0.59  13,417,000    0.54   1,090,292      0.05
Waste mined     22,997,357          23,373,000            (375,643)

Ounces poured      214,742             200,181              14,561

Gold production exceeded plan for the year due to better than expected ore grade of 0.59 gpt compared to planned grade of 0.54 gpt and tonnes of ore mined exceeding plan by 8 per cent.

2014 Production and Cost Guidance

The Company forecasts producing between 190,000 and 210,000 ounces of gold in 2014 at adjusted operating costs forecasted to be in the range of $629 to $695 per ounce of gold sold. All-in sustaining costs - including selling, general and administrative costs, exploration, and sustaining capital - are forecast to fall within a range of $824 to $911 per ounce and all-in costs within a range of $990 to $1,094 per ounce for the year.

The 2014 production forecast and operating cost estimates are based on the following assumptions:


--  Gold recovery of 87 per cent from the run of mine, dump leach operation;
--  Throughput: 32,000 tpd ore;
--  Average grade: 0.62 gpt Au;
--  Waste-to-ore ratio of 1.63:1;
--  Diesel of $4.00 per gallon; and
--  Peruvian Sol : United States dollar foreign exchange rate of 2.8:1.

Rio Alto's 2014 cost per ounce projection is based on sales of between 190,000 and 210,000 ounces of gold and the following cost estimates:


                                                    $(000's)       Per Ounce
----------------------------------------------------------------------------
Mining                                                73,608
Processing & power                                    17,477
Worker profit participation                            7,321
Mine & Lima administration                            32,877
Refining costs net of silver revenue                     734
----------------------------------------------------------------------------
Adjusted operating costs                             132,017    $629 to $695
----------------------------------------------------------------------------
Corporate administration                               2,711
Reclamation                                            3,000
Sustaining capital                                    35,373
----------------------------------------------------------------------------
All-in sustaining costs                              173,101    $824 to $911
----------------------------------------------------------------------------
Phase II capital                                      26,069
Exploration                                            8,229
Other                                                    500
----------------------------------------------------------------------------
Total All-in Costs                                   207,899  $990 to $1,094
----------------------------------------------------------------------------

The Company expects these parameters to fluctuate during the year. The 2014 forecast should be treated as full-year average estimates. Quarterly results will vary from these estimates.

Looking beyond 2014, the Company will complete an update of the gold oxide resources and reserves at La Arena in February. In conjunction with the reserve estimate, the Company will release an updated life of mine production plan, financial model and sustaining capital estimate for the oxide mine.

2014 Capital Budget

The 2014 La Arena sustaining capital budget is $35.4 million and includes the key items outlined below:


Pad Construction                                               $20.8 million
Waste Dump Construction                                         $4.0 million
Acid Water Treatment Plant                                      $2.2 million
Local school expansion                                          $0.8 million

2014 Phase II Budget

The 2014 La Arena Phase II budget is $26 million which includes feasibility study costs, power line and substation and surface rights acquisition.

2014 Exploration budget

The Company plans to drill approximately 14,500 metres of reverse circulation (RC) infill and extension drilling around the Calaorco open pit during 2014 with the objective of adding to the existing resources and reserves. Approximately 5,000 metres of RC exploration drilling is also planned for each of the Carmen and El Alizar exploration targets located on the 27,000 hectare land package at La Arena. Also planned is approximately 10,000 metres of condemnation and scout drilling in the immediate area surrounding the La Arena oxide mine and areas designated for infrastructure for the future sulphide mine.

The cost of exploration activities and drilling is estimated to amount to $8.2 million.

"The production of 214,742 ounces of gold from the second year of commercial production at the La Arena Gold Mine significantly exceeded management's expectations and was due in large part to the hard work and focus of the Lima based management team and everyone involved in mine operations. The board of directors would like to express its appreciation for the commitment and effort of everyone involved in the mine development and its operation and looks forward to a solid performance in 2014 despite challenging market conditions", commented Alex Black, President & CEO.

Rio Alto intends to release its Q4 and 2013 financial results in late March.

The Company's exploration programs are designed and managed by Enrique Garay, M Sc. P. Geo. (AIG Member), Vice President Geology of Rio Alto who is a qualified person within the meaning of National Instrument 43-101 of the Canadian securities regulators and who has reviewed the contents of this news release.

Forward-Looking Statements

This news release contains certain forward-looking information including statements concerning expected timing for completion of a feasibility study, future production, capital spending plans, exploration programs and cost performance and the timing for the preparation of an updated oxide resource and reserve estimate. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Rio Alto's disclosure documents on the SEDAR website at www.sedar.com. Rio Alto does not undertake to update any forward-looking information except in accordance with applicable laws.

To learn more about Rio Alto Mining Limited, please visit: www.rioaltomining.com or Rio Alto's SEDAR profile at www.sedar.com.

ON BEHALF OF THE BOARD OF RIO ALTO MINING LIMITED

Alex Black, President & CEO

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
"We are a modern development application platform and we have a suite of products that allow you to application release automation, we do version control, and we do application life cycle management," explained Flint Brenton, CEO of CollabNet, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
CloudJumper, a Workspace as a Service (WaaS) platform innovator for agile business IT, has been recognized with the Customer Value Leadership Award for its nWorkSpace platform by Frost & Sullivan. The company was also featured in a new report(1) by the industry research firm titled, “Desktop-as-a-Service Buyer’s Guide, 2016,” which provides a comprehensive comparison of DaaS providers, including CloudJumper, Amazon, VMware, and Microsoft.
Application transformation and DevOps practices are two sides of the same coin. Enterprises that want to capture value faster, need to deliver value faster – time value of money principle. To do that enterprises need to build cloud-native apps as microservices by empowering teams to build, ship, and run in production. In his session at @DevOpsSummit at 19th Cloud Expo, Neil Gehani, senior product manager at HPE, discussed what every business should plan for how to structure their teams to delive...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Unsecured IoT devices were used to launch crippling DDOS attacks in October 2016, targeting services such as Twitter, Spotify, and GitHub. Subsequent testimony to Congress about potential attacks on office buildings, schools, and hospitals raised the possibility for the IoT to harm and even kill people. What should be done? Does the government need to intervene? This panel at @ThingExpo New York brings together leading IoT and security experts to discuss this very serious topic.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, sha...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, showed how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningful f...