Peak Gold Ltd Reports Third Quarter Results for 2007 by 24hgold

Mots clés associés : Canada | Copper | Dollar |

Peak Gold Reports Third Quarter Results for 2007

November 28, 2007

(All figures are in US dollars unless stated otherwise)

Vancouver, British Columbia, November 28, 2007 � Peak Gold Ltd. (PIK:TSX-V) (�Peak Gold�) today reported net earnings of $1.2 million, after recording $1.0 million stock-based compensation charges, for the quarter ended September 30, 2007.

Third Quarter Highlights

Gold production of 53,900 ounces
Gold sales of 55,000 ounces
Total cash costs of $303 per ounce (net of by-product sales) (1)
Earnings from operations for the Peak Mines were $6.5 million. Loss from operations for the Amapari Mine were $1.6 million
Consolidated operating cash flows of $7.8 million
On November 15, 2007, the Company filed an independent technical report for the Amapari Mine. The Proven and Probable Mineral Reserve as of September 30, 2007 is 302,100 contained ounces of gold. The Measured and Indicated Mineral Resource(2) is 1.047 million contained ounces of gold. The Inferred Mineral Resource is 1.351 million contained ounces of gold.
Private placement of special warrants to raise gross proceeds of approximately $110 million is expected to close on November 28, 2007

For the period January 1, 2007 to September 30, 2007, gold and copper production and sales for the Amapari Mine and the Peak Mines are presented below.

Note: This table includes results for the period prior to the acquisition of the Amapari Mine and the Peak Mines on April 3rd and April 27th, respectively.

Peak Mines

Production for this quarter at the Peak Mines in Australia was 31,703 ounces of gold and 1,932,000 pounds of copper. Mill throughput was an operational record this quarter at 182,835 tonnes and reflects improved underground production and increased milling capacity. Total cash costs for the quarter were $176 per ounce which reflects consistent copper concentrate sales and continued cost containment despite a strengthening Australian dollar.

The development of the surface decline connection to the underground workings at the Peak Mines is on schedule and expected to be completed in December 2007. This decline is expected to provide increased reliability of production, enable cost savings and improve access to additional ore reserves.

Amapari Mine

Gold production for this quarter at the Amapari Mine in Brazil has increased to 22,200 ounces from 17,300 over the same period in the prior year. The higher gold production is a result of higher gold grades combined with improved grade control. This quarter was a record for ore processed with 519,400 tonnes. Gold recovery was adversely affected by increased saprolite content on the heaps and heavy rain occurrences during heap formation. Total cash costs for the quarter decreased to $491 per ounce from $539 per ounce over the same period in the prior year due mainly to higher production, cost savings during the quarter, and the inclusion in inventory of gold in solution. However, the cost savings achieved during the quarter were partially offset by the strengthening of the Brazilian currency (real).

�Peak Gold is continuing to work on improving recoveries of the oxides and efficiency of its mining operations at Amapari,� said President and Chief Executive Officer, Julio Carvalho.

Peak Gold filed an independent technical report on November 15, 2007 for its Amapari Mine in Brazil. The Proven and Probable Mineral Reserve Estimate as of September 30, 2007 is 3.806 million tonnes at 2.47 grams of gold per tonne or 302,100 contained ounces of gold. The Measured and Indicated Mineral Resource Estimate (inclusive of reserves) as of September 30, 2007 is 14.237 million tonnes at 2.29 grams of gold per tonne or 1.047 million contained ounces of gold. The Inferred Mineral Resource Estimate as of September 30, 2007 increased to 13.039 million tonnes at 3.22 grams of gold per tonne or 1.351 million contained ounces of gold compared to 1.92 million tonnes at 2.47 grams of gold per tonne or 152,000 contained ounces of gold estimated as of December 31, 2006.

�During this quarter we continued to evaluate mining assets for potential acquisitions. We remain confident that we will deliver on our growth strategy and increase production via acquisitions,� said President and Chief Executive Officer Julio Carvalho.

Peak Gold will hold a conference call on Wednesday, November 28, 2007 at 10:00 a.m. (PT) to discuss these results. You may join the call by dialing toll free 1-888-789-9572 or 1-416-695-7806 for calls from outside Canada and the U.S. You can listen to a recorded playback of the call after the event until Wednesday, December 26, 2007 by dialing 1-800-408-3053 or 1-416-695-5800 for calls outside Canada and the U.S. Passcode: 3240618#.

Peak Gold is a new intermediate gold producer with a strong foundation for growth. To learn more about us, please visit our website at www.peakgold.com.

Please click here to download the full third quarter report.

(1) Peak Gold has included a non-GAAP performance measure, total cash cost per gold ounce, throughout this news release. The Company reports total cash costs on a sales basis. In the gold mining industry, this is a common performance measure but does not have any standardized meaning, and is a non-GAAP measure. The Company follows the recommendations of the Gold Institute standard. The Company believes that, in addition to conventional measures, prepared in accordance with GAAP, certain investors use this information to evaluate the Company�s performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

(2) Measured and Indicated Mineral Resources are inclusive of Mineral Reserves

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This News Release contains �forward looking statements�, within the meaning of applicable Canadian Securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and copper, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward looking statements can be identified by the use of forward-looking terminology such as �plans�, �expects�, or �does not expect�, �is expected�, �budget�, �scheduled�, �estimates�, �forecasts� ,�intends� ,� anticipates�, or �does not anticipate�, or �believes�, or variations of such words and phrases or state that certain actions, events or results �may�, �could�, �would�, �might� or �will� or �will be taken�, �occur� or �be achieved�. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Peak Gold to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and copper; possible variations in ore reserves, grade or recovery rates; failure of plant; equipment or processes to operate as anticipated; accidents; labor disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled �Risk Factors� in Peak Gold�s Filing Statement dated April 2, 2007, available at www.sedar.com. Although Peak Gold has attempted to identify important factors that would cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate. As actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

CAUTIONARY NOTE REGARDING RESERVES AND RESOURCES

Readers should refer to continuous disclosure documents filed by Peak Gold since April 3, 2007 available at www.sedar.com, for further information on mineral reserves and resources, which is subject to the qualifications and notes set forth therein.

For additional information please contact:
Investor Relations, Vanguard Shareholder Solutions
Tel: 1.866.398.1088 or 604.608.0824
Email: ir@vanguardsolutions.ca

Peak Gold
Vanguard Shareholder Solutions
Vanguard Shareholder Solutions (Vanguard) provides, for remuneration, corporate communications and investor relations services to the above mentioned client(s). The information contained in this email is based on existing disclosure documents or other publicly available information. You are encouraged to seek independent verification of any information that is important to your decisions. By responding to your inquiry neither Vanguard nor the above mentioned client(s) is offering securities or advising or soliciting the purchase or sale of securities.
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