Newmarket Gold Search for Gold in Australia Yields Promising Results

Destiny A. Lopez  |

The Australian gold market, according to the Minerals Council of Australia, is its third largest export earner. With a long and rich gold mining history dating back to 1851, nearly 70% of Australia’s gold is located in Western Australia; however, gold is mined in all Australian States and the Northern Territory. Newmarket Gold (NMKTF), a mineral exploration company, aims to claim its place in the gold market through a number of recent positive developments.

Headquartered in Vancouver, Newmarket Gold operates its 100% owned gold mines located throughout Australia. These mines include:

  • The Victoria based Fosterville and Stawell gold mines.
  • The Cosmo gold mine located in the Northern Territory.

The company also holds interest in the Victoria-based Big Hill project and the Maud Creek and Esmerelda projects in the Northern Territory.

Newmarket Gold has made impressive strides in recent months. Today, the company announced solid Q1 2016 production results. Highlights from the report include:

  • Fosterville Gold Mine updated Mineral Reserves at year-end 2015 increased 34% to 244,000 ounces of gold.
  • Cosmo production sees 27% improvement to 16,340 oz, grade of 3.09 g/t and recovery of 90.7%.
  • As of March 31, 2016, cash balance totaled $52.1 million, a $15.6 million increase from December 31, 2015.

“With our strong start to 2016, a strong cash balance of US$52.1 million and essentially no-debt,” said Douglas Forster, President and CEO of Newmarket, “Newmarket is exceptionally well positioned to fund key organic growth and exploration initiatives, while delivering on our 2016 production guidance of 205,000 - 220,000 ounces.”

Last month, the company also reported its Q4 and 2015 year end financial results, which revealed promising results. Highlights from the report include:

  • Entering 2016 with a strengthened balance sheet.
  • Record operating cash flow totaling $76.5 million.
  • Record gold production totaling 222,671 ounces.

“We are extremely pleased to commence 2016 with a strengthened financial position as we will redeem all outstanding convertible debentures by the end the Q1 2016 through the issuance of common shares, and received $5.1M in proceeds from the exercise of share purchase warrants in February,” said Forster. “Newmarket will be well positioned for future growth with a solid cash balance and essentially no debt.

Furthermore, according to the official website, Newmarket Gold merged with Crocodile Gold in July 2015, resulting in “a new top 20 Canadian listed gold mining company with three 100% owned operating mines across Australia producing more than 200,000 ounces annually.”

The gold market continues to be a profitable and fascinating sector. With a strengthened financial position, record production numbers, and a focus on safety and sustainability, Newmarket is positioned to lead the mining industry through its strategic site targeting and gold core values.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:



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