TORONTO--(BUSINESS WIRE)-- TMAC Resources Inc. (TSX: TMR) (“TMAC” or the “Company”) is pleased to report second quarter 2019 results for production and certain operating metrics for the underground mine and processing plant. TMAC will release its financial results on August 1, 2019 as described below.

SECOND QUARTER 2019 PRODUCTION SUMMARY

Production: 38,520 ounces of gold produced
Sales: 37,730 ounces of gold sold
Mining: 1,160 tpd, with a grade of 11.4 g/t
Processing Plant: 1,740 tpd, with a feed grade of 9.5 g/t, and 80% recovery
Jason Neal, President and Chief Executive Officer of TMAC, stated, “In the second quarter we produced 38,520 ounces of gold, 1,530 ounces less than the first quarter, and year-to-date 78,570 ounces. In the processing plant, the gravity project is now complete with the second surge bin in full operation on July 1, 2019. We processed an average of 1,940 tonnes per day in May and June combined, including a 21-day period that averaged more than 2,000 tonnes per day to close out the quarter. We are now confident that the Plant has the capability to consistently process 2,000 tonnes per day on average, a key 2019 target achieved sooner than expected. We are, however, disappointed that we did not advance on another key 2019 target of 90% recovery and, in fact, experienced reduced second quarter recoveries of 80%. The cause for the reduced recovery included lower availability of the gravity concentrators due to commissioning challenges and, as a result, greater pressure was placed on resin performance. The amount of gold lost in increased solution tails from the resin column substantially accounts for the reduction in overall gold recovery versus the first quarter. Issues with resin performance at higher throughput had been anticipated but were compounded by poor gravity concentrator availability. The scavenger columns to treat solution tails, which have been in design since the beginning of the year, will be installed during the third quarter and are expected to materially improve concentrate treatment plant recovery.”

Jason Neal continued, “Our mining rate for the second quarter was lower at 1,160 tonnes per day, though at an improved mine grade of 11.4 grams of gold per tonne despite high-grade Doris North BTD East Limb ore moving into the second half of 2019 rather than the second quarter as originally expected. In the third quarter, our plan includes sequencing into higher stope availability with access to larger stopes of Doris Connector, and we should see a contribution of higher grade from the high-grade cut and fill area in the Doris North BTD Extension as well as the Doris North BTD East Limb. We also expect to process the first ore mined from the Madrid North Naartok East crown pillar surface mining in the third quarter. We did not put the maximum available grade into the Plant in the second quarter as we used low-grade stockpiles to manage the plant feed grade on a daily basis to be 9 to 11 grams of gold per tonne and ended the quarter with some high grade stockpiles.”

Jason Neal concluded, “Concurrently today, we released a quarterly exploration update. Underground diamond drilling on the Doris North BTD Extension continues to expand the high-grade mineralization a further 60 metres to the north and, perhaps more interesting, we also intersected mineralization with visible gold noted in the surface step-out drilling a further 325 metres north which has the potential to nearly double the current strike length of the BTD Extension zone. Assays for Doris surface drilling will be released after the third quarter. At Madrid North Suluk, drilling intersected 10.0 grams of gold per tonne over 3.0 metres, 14.3 grams of gold per tonne over 5.5 metres and 10.8 grams of gold per tonne over 9.3 metres down to the 660 metre level. This demonstrates the significant potential below the current Indicated Mineral Resource which is established down to approximately the 300 metre level. This is the deepest ever drill hole at the Suluk zone.”

QUARTERLY PRODUCTION RESULTS
Q2 2019 Q2 2018 H1 2019 H1 2018
Gold Production (oz) 38,520 23,140 78,570 43,790
Plant Throughput (tpd) 1,740 970 1,680 950
Feed Grade (g/t) 9.5 10.0 9.9 10.4
Recovery (%) 80 82 82 76
Mine Production (tpd)(1) 1,160 790 1,380 880
Mined Grade (g/t)(1) 11.4 9.6 10.7 8.8

(1) Includes incremental ore from development

SECOND QUARTER 2019 FINANCIAL RESULTS – CONFERENCE CALL AND WEBCAST

TMAC plans to release its second quarter 2019 financial results after market close on Thursday, August 1, 2019. Senior management will host a conference call and webcast to discuss these results on Friday, August 2, 2019 at 10:00 a.m. (ET).