October Operations Update

VANCOUVER, British Columbia, Dec. 14, 2017 (GLOBE NEWSWIRE) -- Rizal Resources Corporation (TSXV:RZL) (“Rizal” or the “Company”)

During October, Rizal continued to advance the T’boli project with gold sales more than doubling September sales at 361oz for the month. The project was very close to breaking even, with a result of CAD 36k loss for the month, a significant improvement on the September quarter.

Results from the mine were very encouraging with the average grade increasing to 4g/t for the month. Mine development continued to advance on several levels, the south Access, 525 and 505. The main objective over the next few months is to achieve a cashflow positive position.

Operational highlights for October 2017

  • Gold production for October totalled 765oz, Bullion sold totalled 361oz for total revenue of CAD 559k (PHP 23.1m) more than double September sales, and Gold in Circuit (GIC) totalled 404oz.
  • The project achieved an operating loss of CAD 36k (PHP 1.4m) versus a loss in September CAD 115k (PHP 4.7m).
  • Gross revenue increased by 56% from September
  • Operating costs rose by 61%, mainly due to the move to owner mining.

  • Total capex for October was CAD 438k (PHP 18.2m) of which Mine capex was 97%

  • Total of 116 meters of horizontal advance was achieved in October, 63 metres capital drive and 52 metres of development drive - a significant improvement on development metres during September.

  • Mill availability was 98%, less than planned mill feed resulted in utilisation of only 62%.

  • Mill throughput was 3760 tonnes, a marginal increase over September’s 3,561 tonnes.


Operations Financial Summary

SummarySeptemberOctoberVariance %
Gold in Circuitoz21240491%
Gold Producedoz172361110%
Silver Producedoz34148943%
Total Goldoz383765100%
Total Silveroz34141121%
Gold RevenueCAD261,430552,269111%
Silver RevenueCAD5,6246,78121%
TOTAL REVENUECAD267,054559,050109%
Mining CostsCAD63,973172,828170%
Milling CostsCAD271,291368,15536%
TOTAL OPERATING COSTSCAD335,264540,98261%
General & Admin CostCAD38,36852,55737%
Social Dev and EnvironmentCAD7,9241,452-82%
TOTAL COSTSCAD381,555594,99156%
OPERATING PROFIT/LOSSCAD-114,501-35,94169%


Capital Expenditure
Mill CapexCAD010,378N/A
Mine CapexCAD380,225426,84212%
Admin CapexCAD01,180N/A
Total Capital CAD 380,225438,400 15 %

Processing Facility

ProcessingSeptemberOctoberVariance %
Tonnes Milledt3,561 3,760 6%
Grade Aug/t3.52 4.04 15%
Recovery Au%95.2%94.1%-1%
Gold in Circuitoz212 404 91%
Gold Producedoz172 361 110%
Silver Producedoz341 411 21%
Total Goldoz383 765 100%

Mining Operation

MiningSeptemberOctoberVariance %
Decline advancem55.8063.5014%
Development advancem12.0052.50338%
Stopingt336232-31%
ROM Stockpilet3,2012,297-28%
Tonnes Sent to Millt3,9862,589-35%

Mr Dirk Richards, BSc (Met/Chem), MAusIMM (CP Met), RPEQ, MRACI is nominated as a "Qualified Person" as such term defined under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43- 101"), has reviewed and verified the validity of the scientific and technical disclosure in this news release.

Peter Main President and CEO
pmain@rizalresources.com

For further information please visit our website at www.rizalresources.com, email us at info@rizalresources.com
Phone: 778-370-1372 Fax: 604-608-5442

Neither 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.

Source:Rizal Resources