Majestic Gold Announces its Financial and Operating Results for the Second Quarter Ended March 31, 2010
03 June 2010 - 8:30AM
Marketwired
Majestic Gold Corp. (TSX VENTURE: MJS) ("Majestic") is pleased to
announce its financial and operating results for the second quarter
ended March 31, 2010.
Majestic generated gold revenue of $1,730,392 derived from the
sale of 1,531.8oz Au, and incurred a total operating cost of
$1,467,325 and no additional exploration cost. Majestic reported a
net loss of $502,128, and the operating loss for the period was
negligible, at $24,480. The main adjustments leading to the second
quarter net loss were: non-controlling interest expense of
$111,274, loss on foreign exchange of $131,045, and interest and
financing cost of $170,036.
On a consolidated basis, Majestic's financial position has
significantly improved when compared to the same period in 2009. As
a result of the sale of its Sawayaerdun Project, Majestic reported
working capital of $3,037,399 for its second quarter, compared to a
working capital deficit of $4,882,075 for the corresponding period
in 2009. As soon as practical, management intends to use the funds
due from the sale of the Sawayaerdun project to repay its
outstanding loan and to further develop the Song Jiagou Mine.
Subsequent to recommencing mining operations at Dahedong Smelter
mills at their designed capacity of 1,400 tpd, Majestic signed an
agreement to acquire the remaining 40% of Yantsai Zhongia Mining
Enterprise ("JVCo"). Majestic is currently fast tracking operation
at the Song Jiagou Mine through expansion of milling capacity,
improving infrastructure, and developing pit models, mine plans and
pre-feasibility studies based on its recently announced revised
resource estimate, which will be used to initially expand
production to 5,000 tpd.
Rod Husband, P.Geo, and President, stated, "We are extremely
pleased with the results of the second quarter and we look forward
to becoming a positive cash flow company in the near future. Our
immediate focus is on improving efficiency at the mine, repaying
our outstanding loan (which will significantly reduce our
expenses), and closing of the acquisition of the outstanding 40%
interest at Song Jiagou."
On Behalf of the Board of Directors
MAJESTIC GOLD CORP.
Rod Husband, P.Geo, President
This news release may contain forward-looking statements
including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes,
etc. Forward-looking statements address future events and
conditions and therefore, involve inherent risks and uncertainties.
Actual results may differ materially from those currently
anticipated in such statements.
Neither the 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.
Contacts: Majestic Gold Corp. Investor Relations (604) 681-4653
or 1-866-282-8398 (604) 683-6557 (FAX) info@majesticgold.net
www.majesticgold.net
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