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Sonoro Gold Corp. (TSXV: SGO | OTCQB: SMOFF | FRA: 23SP) ("Sonoro" or the "Company") wishes to correct a calculation error regarding the all-in sustaining cost ("AISC") disclosed on September 15, 2021, as part of the results from an independent Preliminary Economic Assessment(" PEA") and updated Mineral Resource Estimate completed on the Company's Cerro Caliche gold project located in Sonora State, Mexico.
Due to the inadvertent inclusion of certain tax and depreciation expenses in its calculations, the Company reported the AISC to be US$489.3 million LOM, and US$1,462 per ounce ("oz.") of gold equivalent ("AuEq"). The corrected amounts, as reported in the table below, are US$437 million LOM, and US$1,351 per oz. AuEq.
| Operating Costs | LOM (US$M) | US$/oz AuEq | ||
| Mining | $174.7 | $540 | ||
| Processing | $204.9 | $633 | ||
| Administration | $17.3 | $53 | ||
| Total Cash Costs | $ 396.9 | $ 1,227 | ||
| Refining | $20.7 | $64 | ||
| Royalties | $11.7 | $36 | ||
| Sustaining | $4.8 | $15 | ||
| Closure | $2.9 | $9 | ||
| All-in Sustaining Costs (AISC) | $ 437.0 | $ 1,351 | ||
The other results of the PEA reported in the Company's September 15, 2021 announcement remain unchanged. The PEA has been prepared in accordance with the requirements of National Instrument 43-101 by D.E.N.M. Engineering Ltd. of Burlington, Ontario ("D.E.N.M.").
Qualified Person Statement
David Salari, P.Eng., of D.E.N.M. Engineering Ltd., who is independent of the Company and a Qualified Person as defined under NI 43-101, has reviewed and approved the scientific and technical information herein regarding the Company's Cerro Caliche Project.
Stephen Kenwood, P.Geo., a Director of Sonoro Gold, is a Qualified Person within the context of National Instrument 43-101 (NI 43-101) and has read and approved this news release.
About D.E.N.M. Engineering Limited
D.E.N.M. Engineering Ltd. is a niche engineering company servicing the mining / mineral processing sector that specializes in Engineering & Design, Equipment Supply, Project & Construction Management, Commissioning and Operations Support. D.E.N.M. Engineering Ltd. has proven success while championing projects for over fifteen years in Canada, USA, Mexico and Central America.
In addition, D.E.N.M. Engineering, with its principal and independent specialists, performs NI 43-101 compliant assessments and studies in the sections of mineral processing metallurgical design, process design, capital and operating costing and cash flow analysis.
About Sonoro Gold Corp.
Sonoro Gold Corp. is a publicly listed exploration and development company holding the near development stage Cerro Caliche project and the exploration stage San Marcial properties in Sonora State, Mexico. The Company has highly experienced operational and management teams with proven track records for the discovery and development of natural resource deposits.
| On behalf of the Board of Sonoro Gold Corp. | |
| Per: | "Kenneth MacLeod" |
| Kenneth MacLeod | |
| President & CEO | |
For further information, please contact:
Sonoro Gold Corp. - Tel: (604) 632-1764
Email: info@sonorogold.com
Forward-Looking Statement Cautions:
This press release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the Cerro Caliche project, and future plans and objectives of the Company, including the NPV, IRR, initial and sustaining capital costs, operating costs, and LOM production of Cerro Caliche, constitute forward looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of the Company and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of Mineral Resource Estimates. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information. Important factors that could cause actual results to differ materially from the Company's expectations include exploration and development risks associated with the Company's projects, the failure to establish estimated Mineral Resources or Mineral Reserves, volatility of commodity prices, variations of recovery rates, and global economic conditions. The forward-looking information contained in this release is made as of the date of this release. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law or the policies of the TSX Venture Exchange. Readers are encouraged to review the Company's complete public disclosure record on SEDAR at www.sedar.com .
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
Figure 1: Long Section of the Never Never Gold Deposit and the Pepper, Four Pillars and West Winds Gold Prospects looking east. Proposed exploration drill drive design in black.