Majestic Gold Corp. (TSX VENTURE:MJS)(FRANKFURT:A0BK1D) ("Majestic"
or the "Company") is pleased to announce that it has received a
preliminary report of gold production from the Song Jiagou gold
mine for its financial quarter ended September 30, 2012 ("Q4
2012"). Song Jiagou gold production by quarter for FY 2012 is
detailed in the following table:
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Quarter Gold Production (ounces)
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Q1 2012 4,738
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Q2 2012 4,609
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Q3 2012 4,891
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Q4 2012 4,731
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FY 2012 Total 18,969
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Further details regarding results of operations for the Company
and its Chinese subsidiary, Yantai Zhongjia Mining Company Limited
("Zhongjia"), including revenue from gold sales and profitability,
will be set out in the Company's annual management discussion and
analysis and annual audited consolidated financial statements.
The Company expects gold production to increase during the next
nine months toward the Company's goal of 100,000 ounces per year as
Zhongjia commences to process the higher grade ore from the main
ore body. Over the past four quarters, Zhongjia has processed all
mined materials, including material considered waste in the Mine
Plan, resulting in a mill head grade lower than the grade projected
for the main ore body. This practice will be continued until the
planned upgrades to the onsite assay lab have been completed. The
lab improvements will include the addition of fire assay equipment
and the expansion of lab facilities to allow more samples to be
processed on a daily basis, resulting in more detailed and timelier
information for the mine operator. These upgrades will allow the
Company to implement improved grade control, resulting in higher
head grades for ore delivered to the mill.
"We are very pleased with the results to date," stated Mr. Rod
Husband, CEO of Majestic Gold Corp. "Annualized gold production of
almost 19,000 ounces is consistent with our expectations based on
our Mine Plan and indicates steady progress toward our production
goal of 100,000 ounces per year when we reach the higher grade
portion of the ore body."
The geological and technical information contained in this news
release has been reviewed and approved by Rod Husband, P.Geo., who
is a qualified person under the definitions established by National
Instrument 43-101.
About Majestic Gold
Currently focused solely in China, Majestic Gold Corp. is a
Vancouver, BC based company engaged in commercial gold production
at the Song Jiagou gold mine in Yantai, China. Majestic Gold has
forecast an average production for the life of mine at a rate in
excess of 100,000 ounces of gold per year. (Wardrop Engineering
Inc. NI 43-101 Technical Report dated February 2011). Pursuant to
the terms of the Zhongjia joint venture, Majestic is entitled to
70.5% of net profits from gold sales. Additional information on the
Company and its projects is available on SEDAR at www.sedar.com and
on the Company's website at www.majesticgold.net.
On Behalf of the Board of Directors
MAJESTIC GOLD CORP.
Rod Husband, P.Geo, President
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained herein may constitute
forward-looking statements and are made pursuant to the "safe
harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995 and Canadian securities laws.
Forward-looking statements are statements which relate to future
events. Such statements include estimates, forecasts and statements
as to management's expectations with respect to, among other
things, business and financial prospects, financial multiples and
accretion estimates, future trends, plans, strategies, objectives
and expectations, including with respect to production, exploration
drilling, reserves and resources, exploitation activities and
events or future operations. Information inferred from the
interpretation of drilling results and information concerning
mineral resource estimates may also be deemed to be forward-looking
statements, as it constitutes a prediction of what might be found
to be present when, and if, a project is actually developed.
In some cases, you can identify forward-looking statements by
terminology such as "may", "should", "expects", "plans,
"anticipates", "believes", "estimates", "predicts", "potential", or
"continue" or the negative of these terms or other comparable
terminology. These statements are only predictions and involve
known and unknown risks, uncertainties and other factors that may
cause our or our industry's actual results, level of activity,
performance or achievements to be materially different from any
future results, levels of activity, performance, or achievements
expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon
which they are based, are made in good faith and reflect our
current judgment regarding the direction of our business, actual
results will almost always vary, sometimes materially, from any
estimates, predictions, projections, assumptions or other future
performance suggestions herein. Except as required by applicable
law, Majestic Gold does not intend to update any forward-looking
statements to conform these statements to actual results.
Production Disclaimer
The Company's production decision was not based on a feasibility
study of mineral reserves demonstrating economic and technical
viability. The Company's production decision was made based on the
open pit optimization resource model set out in the Preliminary
Economic Assessment ("PEA") which takes into account the relatively
low mining costs negotiated by the Company. The pit optimization
that was conducted in the preliminary assessment generated a
production schedule summary at grade cut-off of 0.30 grams per
tonne Au.
The PEA includes the inferred mineral resources that are
considered too speculative geologically to have the economic
considerations applied to them that would enable them to be
categorized as mineral reserves. There is no certainty that the
preliminary assessment will ever be realized. Mineral resources
that are not mineral reserves do not have demonstrated economic
viability. The PEA is available for review on SEDAR.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Majestic Gold Corp. Investor Relations (604) 681-4653
or 1-866-282-8398info@majesticgold.net www.majesticgold.net