Day: August 1, 2019

Leagold CEO Neil Woodyer commented: “At the mid-point of the year we are on track to meet our full-year production and cost guidance. In the first half we have sold just over 200,000 oz gold at AISC of $951 per oz. We have also launched the expansion of Los Filos which, together with the re-start of Santa Luz scheduled for 2021, is expected to take group production to 600,000-700,000 oz per year.”

“During the recent period of low metal prices, we continued to make capital investments and advance exploration programs at both of our projects, leaving us well positioned for the improving silver price environment that we are now seeing,” stated Brendan Cahill, President and CEO. “Our ongoing optimization work has delivered results, reducing AISC by 27% quarter-over-quarter. We still have a number of opportunities to follow-up on to further reduce costs and and increase metal production. Toll milling of ore from Hecla’s San Sebastian Mine commenced in Q2 and is expected to ramp up in Q3, bolstering cash flow. With silver prices now almost $1.50/ounce higher than the average price realized during Q2, we will continue to focus on increasing cash flow and exploring for discoveries at both Platosa and Evolución.”

Alonso Lujan, Vice President of Exploration and the Country Manager for Mexico, and Miguel Paucar, Country Manager of Peru, will take over Mr. Babcock’s responsibilities and report directly to the President and CEO, Igor Gonzales.

The Company intends to use the net proceeds of the Offering for (i) near mine and regional exploration programs at the Tucano Gold Mine, (ii) capital expenditures in connection with the Tucano Gold Mine including optimization initiatives, and (iii) improvement of the Company’s working capital balances and general corporate purposes.