News Release

April 11, 2012

Bisha Announces Q1 2012 Operating Results

 

Q1 2012 OPERATING HIGHLIGHTS

  • Mined 358,000 tonnes of ore at 4.07 g/t gold
  • Produced 82,000 ounces of gold
  • Maintain 2012 guidance of 190,000 to 210,000 ounces of gold production

 

Bisha Mining Share Company (BMSC) is pleased to announce strong production results of 82,000 ounces of gold for the quarter ending March 31, 2012.  Gold production in the quarter was above expectation due to several factors, including a drawdown of gold-in-circuit in the processing plant in preparation for a mill reline and higher than anticipated grades in portions of the high grade stockpile. We reiterate our full year 2012 production guidance of 190,000 to 210,000 ounces of gold production.

A summary of the Company’s first quarter operating results are as follows:

 

For the three month periods ended March 31,

 

2012

2011

Mining

 

 

Ore mined, tonnes

358,000

475,000

Mined grade, g/t

4.07

5.65

Waste mined, tonnes

2,401,000

2,309,000

Strip ratio

6.7

   4.9

Copper phase prestrip, tonnes

1,294,000

-

Milling

 

 

Ore milled, tonnes

430,000

461,000

Feed grade, g/t

6.58

6.18

Processing

 

 

Recovery % of gold

86%

88%

Gold in doré, ounces poured

82,000

75,000

Sales

 

 

Gold ounces sold

83,080

72,500

       

The mine performed well in the quarter, producing expected total tonnage and gold head grade.   The costs associated with the removal of copper phase prestrip are deferred for accounting purposes. 

The reduction in mined head grade for Q1 2012 compared to Q1 2011 is according to plan and fits with the Company’s guidance on 2012 production.  Q1 2012 plant tonnage was lower than the same period in the prior year due mostly to changing ore characteristics and to lower plant availability. The reduced milling was offset by higher than budgeted gold grades for the quarter. Gold recoveries in Q1 2012 decreased compared to the same period in 2011 due to changing ore characteristics. The lower recovery rate is expected to continue throughout 2012.

Full financial results will be released in mid-May 2012.

 

Forward Looking Statements: The above contains forward-looking statements regarding production guidance for 2012.   Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved.  Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors.  The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future.

 

Bisha Mining Share Company

“Cliff T. Davis”

Cliff T. Davis
Chairman