Apr 30 2013
QMX GOLD CORPORATION ("QMX Gold" or the "Company") has produced 4,141 ounces of gold from the Lac Herbin mine located in Val-d'Or, Quebec. The Aurbel Mill processed 33,866 tonnes of ore with a head grade of 4.09 g/t Au and achieved an average recovery rate of 93%. Cash cost information will be released as part of the first quarter financial results expected in May.
Q1 Production Update
Production in the first quarter of 2013 saw an increase in average grade back to 4.09 g/t Au. The Aurbel mill has been increasing recoveries to more than 92%, which is in line with the average rate expected from the mill in 2013. While the level of production achieved in Q1 is slightly lower than budgeted, it was expected to be the weakest quarter as the Company transitions to newly developed zones in the coming quarters.
The Company continues to maintain annual production guidance of 20,500-23,500 ounces gold at a cost of $1,200 to $1,400 per ounce for 2013.
The management team at the Lac Herbin mine and Aurbel Mill are being diligent about controlling costs with the goal of continued profitability at the operations. In the first quarter, a cost management plan was implemented to reduce operational costs by approximately $75 per ounce of production.
François Perron, President and CEO of QMX, commented as follows in relation to these recent results: "The production results were slightly lower than projected this quarter but I am confident that we will be able to make this up in the coming quarters as we begin mining the newly developed zones. I am pleased to see milling operations improve recovery rates from the low levels experienced in the fourth quarter of 2012." Mr. Perron continued by saying: "The goal of Lac Herbin is to be profitable and our cost management plan is imperative to achieving this. The Company will continue to look for ways to further reduce costs."
About QMX Gold
QMX Gold Corporation is a Canadian publicly traded mining company focusing on mine development and exploration in Quebec and Manitoba. QMX Gold continues to operate in the Val-d'Or area with production estimated at 20,500-23,500 ounces of gold per year. The Company also owns property at the Snow Lake Mine which has a Measured and Indicated Mineral Resource of 5.4 million tonnes grading 4.45 g/t Au for approximately 720,000 oz of gold. The Snow Lake Mine is expected to produce 80,000 ounces of gold per year.
Full details of the Snow Lake Project are outlined in the Technical Report titled "Snow Lake Mine Re-activation Project" dated December 10, 2010 and prepared by: Andre Roy (Eng.) Jamie Lavigne (P.Geo), David West (P.Eng), Ian Ward (P.Eng), Matthew Parfitt (P.Eng), Mark Bednarz (P.Geo), which is available on the SEDAR profile of the Company at www.sedar.com.
Qualified Person
Technical programs and information included in this release have been reviewed and approved by Patrick Sévigny, P.Eng., Vice President of Quebec Operations and a Qualified Person as defined under NI 43-101.