Fiore Gold tables Gold Rock PEA

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Fiore Gold Ltd. [F-TSXV; FIOGF-OTCQB] announced results from a Preliminary Economic Assessment (PEA) completed for the federally-permitted Gold Rock gold project located approximately 8 miles southeast of its Pan Mine in White Pine County, Nevada.

The PEA provides an updated mineral resource estimate and a base case assessment of developing the project as a satellite open pit operation that will share significant infrastructure and management with the adjacent Pan Mine.

The PEA also identifies a considerable number of opportunities to enhance the project economics as Gold Rock advances to the feasibility stage by drilling to increase the mineral resource, further metallurgical testing aimed at improving recoveries, and geotechnical drilling aimed at reducing the stripping ratio. All financial figures are presented in US$ and all units of measure are customary US units unless otherwise noted. The PEA was prepared in accordance with NI 43-101 Standards.

PEA Parameters and Outputs – Base Case $1,400/oz Au

Pretax NPV 5% ($M) – $49.7

Pretax IRR (%) – 22.8%

After-tax NPV5% (US$M) – $32.8

After-tax IRR (%) – 17.8%

LOM tons processed (vat leach/heap leach, M tons) – 13.6/9.5

LOM Au recovery (Vat leach/heap leach, %) – 88.2/60.0

LOM Au production (oz) – 362,750

Average annual Au production (oz) – 55,800

Preproduction capital ($M) – $64.6

LOM sustaining capital ($M) – 7.0

Reclamation costs ($M) – 16.0

LOM AISC ($/oz) – 1,008

Mine life (years) – 6.5

The foregoing PEA highlights are based on the following: Cash costs are inclusive of mining costs, processing costs, on-site general and administrative costs, treatment and refining charges and royalties. AISC includes cash costs plus estimated corporate G&A and sustaining capital

Fiore Gold CEO, Tim Warman, said, “This PEA represents the first ever economic and technical analysis of mining at Gold Rock, and shows the project can deliver solid returns for a modest capital investment. Gold Rock would be built and run by the same Fiore technical team who transformed the adjacent Pan Mine into one of the most successful small gold mines in Nevada. Leveraging the management talent and infrastructure already in place at Pan offers a number of capital and operating synergies, and the shared mine administration and management will lower the G&A burden for both projects.

“While the PEA results represent an encouraging first iteration of the project, they also highlight several areas with the potential for significant optimization when more data is collected to support a Feasibility Study. For example, the project economics are particularly sensitive to the stripping ratio, yet with geotechnical drilling still to be completed on the project we have used relatively conservative assumptions for pit slope designs.

“An extensive program of large-diameter core drilling, geotechnical drilling, metallurgical testing and overall process and project optimization is planned for the next phase of work, since any improvement in recoveries and reagent consumption also has the potential to positively impact the project economics.

“Finally, there is strong potential to grow the resource base by infill drilling in the gaps between the current resource pits, and to continue drilling along strike where the deposit remains open. Success here will contribute significantly to a reduced strip ratio. With resource growth and operational optimizations, we believe Gold Rock can deliver significantly improved returns as we progress. Assuming continued success with our efforts to extend the mine life at our adjacent Pan Mine, Gold Rock has the potential to more than double Fiore’s current gold output in Nevada and increase our total production above 100,000 ounces per year for a modest capital investment.”

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