NEWS RELEASE
TAHOE CANADA
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TIMMINS - Tahoe Canada today announced it poured its one millionth ounce of gold at the Bell Creek Mill, approximately eight years after pouring its first gold bar in 2009.
Peter Van Alphen, vice president of operations for Tahoe Canada, commented, "We're pleased to celebrate this significant achievement in just over eight years with our employees, contractors, community and our Aboriginal partners. Our goal is to ensure that our next millionth ounce of gold is produced with continued operational excellence, strong environmental stewardship and a leading safety culture."
About Tahoe Canada
Tahoe Canada is a subsidiary of Tahoe Resources (TSX: THO, NYSE: TAHO). Tahoe acquired Lake Shore Gold Corporation on April 1, 2016, adding two underground mines, Timmins West and Bell Creek, as well as attractive growth projects and exploration targets, now Tahoe Canada. The mines are located in Timmins, Ont., Canada, one of the world’s most prolific gold camps. The mines consist of two mining operations, Timmins West and Bell Creek, both of which feed the Bell Creek Mill.
The Timmins West mine is located approximately 18 kilometers west of Timmins and is comprised of the Timmins deposit, which has been in commercial production since January 2011, the Thunder Creek deposit, which achieved commercial production in January 2012, and the 144 Gap deposit, located approximately 600 meters from the Thunder Creek deposit.
The Bell Creek mine is located in Hoyle Township, Ont., Canada, approximately 20 kilometers northeast of Timmins. Operations are exploiting steeply-dipping shear-hosted sulfide gold mineralization by underground longhole mining methods with ore trucked to surface via a ramp system for processing. A project to rehabilitate a historic shaft at Bell Creek and extend it from approximately 300 meters to a depth of 1,080 meters commenced in the second quarter of 2016, with completion targeted for mid-2018. The shaft project remains on time and budget and is expected to result in a doubling of production at Bell Creek, to approximately 80,000 ounces per year, and to significantly extend mine life.
The Bell Creek mill processes ore from both the Timmins West and Bell Creek mines. Ore is processed by single-stage crushing and single-stage grinding, with a portion of the gold recovered by gravity methods, followed by pre-oxidation and cyanidation with carbon-in-leach and carbon-in-pulp recovery. During 2016, the mill averaged 3,400 tpd and processed 0.9 million tonnes of ore at an average gold grade of 4.12 grams per tonne and an average recovery of 96 per cent, for a total of 158.4 thousand recovered gold ounces. Total cash operating and all-in sustaining costs (“AISC”) in 2016 averaged $615 per ounce and $1,057 per ounce, respectively.
In 2017, production from Tahoe Canada is expected to total between 165 and 180 thousand ounces. Target ranges for total cash costs and AISC per ounce produced in 2017 are $650 – $700 and $1,000 – $1,100, respectively.
For more information on Tahoe Resources, please refer to tahoeresources.com.
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