Brio Gold Announces Q4 and Full Year 2017 Operating Results and 2018 Guidance, Provides Santa Luz Update

Total production in the fourth quarter of 2017 was 40,350 ounces of gold and 178,025 ounces of gold for the full year of 2017. Full year production was lower than 2017 guidance, largely driven by lower production at Pilar as the Company restructured operations there in the fourth quarter. Cash costs for the fourth quarter of 2017 were $806 per ounce of gold, an 8% improvement compared to the third quarter of 2017 despite a 6% reduction in ounce production. Full year 2017 cash costs were $846 per ounce of gold, lower than 2017 cash cost guidance as result of improved costs at Fazenda Brasileiro and RDM. Mine site all-in sustaining costs (AISC) for the fourth quarter of 2017 were $1,024 per ounce of gold, improving 10% compared to the third quarter of 2017. Full year 2017 AISC was $1,035 per ounce, coming in at the lowest end of the guidance range.

Fazenda Brasileiro Mine

Fazenda Brasileiro production, cash cost and AISC improved in the fourth quarter of 2017 when compared to the third quarter of 2017, as a result of improved grade, which improved 8% when compared to the third quarter 2017. Production in the fourth quarter of 2017 was 16,100 ounces of gold, 1% higher than the third quarter of 2017. Cash costs were $821 per ounce, 13% lower than the third quarter of 2017 and AISC was $973 per ounce, 16% lower than the third quarter of 2017.

Fazenda Brasileiro achieved full year 2017 production and cash cost guidance. Full year production was 60,978 ounces, compared to guidance of 60,000 to 65,000 ounces of gold. Cash costs were $862 per ounce compared to guidance of $855 to $865 per ounce. AISC was $1,033 per ounce compared to guidance of $1,020 to $1,030 per ounce.

The Company expects grade to continue to improve at Fazenda Brasileiro into 2018. As a result, 2018 production is expected to be 65,000 to 75,000 ounces of gold. Costs are expected to be $760 to $790 per ounce and AISC is expected to be $960 to $990 per ounce.

Fonte: BrioGold