Gold-Ore Resources Ltd. (TSX VENTURE:GOZ) announces that the Board of Directors has approved an underground mine expansion plan for the 100%-owned Bjorkdal Gold Mine in Sweden. The mine is currently producing gold at the rate of 40,000 ounces per annum and the planned expansion will, over the next few months, raise gold output levels by approximately 20%. Further staged expansions will be evaluated upon completion of this phase.
The estimated capital investment budget for 2009 is C$3.4 million, which will be funded entirely from cash flow. In addition to the mine expansion, expenditures are budgeted for the plant and tailings facility that will increase recovery, productivity and extend mine life.
Mine Expansion Plans
All underground production has come from two levels in the mine and during January the Company commenced the excavation of two ramps to access two new levels. These new levels will provide plant feed for all of 2009 and into 2010. This expansion to four active mining levels will provide adequate working faces for increased tonnages. The mining contractor (Bergteamet AB) has provided additional crew and mining equipment to increase tonnes extracted from underground by 40%, to 1,400 tonnes/day.
The mining schedule for the open pit has also been expanded. During 2008, an average of one blast per month in the pit was achieved. Over the next few months this schedule will be doubled to two blasts per month, resulting in approximately 1,500 tonnes/day of plant feed.
Project Update
Gold-Ore is focused on developing a 5 year mine plan for a combined underground and open pit operation. The Company has now excavated 6,000 metres of tunnels and drilled 24,000 metres of diamond drill core since commencing work on the project in 2006. This work has confirmed the extension of the gold-bearing quartz veins and the potential to expand the ore-body in all directions.
Over the last six months Gold-Ore has focused on maximizing monthly gold production by increasing underground capacity and reactivating the open pit. During the last half year daily production has averaged 980 tonnes from underground, 800 tonnes from open pit and 1,260 tonnes from surface stockpiles. Limited material will be sourced from stockpiles during February and March. The goal of the Company is to reduce reliance on surface stockpile material for plant feed and replace it with higher grade ore mined from underground and open pit.
The Company will be issuing a news release about 2009 exploration programs shortly. Plans and budgets for resource expansion and exploration drilling are being finalized.
About Gold-Ore
Gold-Ore Resources is a gold mining and exploration company focused in Sweden. The Company is debt-free and unhedged, and remains focused on increasing gold production from the 100%-owned Bjorkdal Mine. In addition to Bjorkdal, the Company also has other assets in the country; the Ronnberget Gold Property (adjacent to Bjorkdal), the Norrliden Polymetallic Deposit and the Vallberget Polymetallic Property.
Bjorkdal property information is posted on the Company's web site at www.goldoreresources.com.
ON BEHALF OF THE BOARD
Robert Wasylyshyn, President
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, production levels, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
News Release 09-03
SOURCE: Gold-Ore Resources Ltd.
Gold-Ore Resources Ltd. Glen Dickson (604) 687-8884 Gold-Ore Resources Ltd. Bob Wasylyshyn (604) 687-8884 Gold-Ore Resources Ltd. Ron Ewing (604) 687-8884 Website: www.goldoreresources.com