VANCOUVER, Aug. 19 /CNW/ - Farallon Mining Ltd. ("Farallon" or the
"Company") (TSX:FAN) announces that it has extended its zinc and copper
concentrates contracts for 2 1/2 years with Trafigura Beheer BV
Amsterdam, up to December 2014. More favourable terms have been agreed
in both contracts reflecting the current market situation and adjusted
to Farallon's quality.
For zinc, a fixed treatment charge has been negotiated for tonnage
shipped between July 1st, 2010 and March 30th,
2011. From April 1st 2011 to September 30th 2012,
a discount over the benchmark treatment charges will be applied to 50%
of zinc concentrates production and starting 1st October
2012, a discount over the benchmark treatment charges will apply to 100%
of Farallon production of zinc concentrates. In the case of copper
concentrates fixed treatment and refining charges apply; however, from
August 2011 benchmark treatment and refining charges will be applied.
For more than 2 years, since Farallon started production at the G-9
mine, the Company's concentrates have been shipped to smelters in Korea,
China, Japan and Canada. Both Farallon zinc and copper concentrates are
"clean" concentrates with unusually low levels of impurities. At the
same time, both concentrates are high in precious metals. As a result,
all smelters are fully satisfied with Farallon's quality, confirming the
positioning of the Farallon brand in the international market.
Dick Whittington said: "We are very pleased to be able to restructure
our concentrate off-take contracts and to extend our relationship with
Trafigura. This is a key component in getting our products to market on
a competitive basis and providing shareholder value at the same time."
Farallon operates the G-9 zinc mine on its Campo Morado Property in
Guerrero State, Mexico. G-9 is a 1,500 tonnes per day, underground zinc
mine with important by-product credits of copper, gold, and silver. G-9
has total cash costs(1) in the lowest 10% of zinc producers worldwide.
The Company is targeting to produce at an annualized production rate of
120 million pounds of zinc and 15 million pounds of copper per year.
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington,
President & CEO
Total Cash Costs and Adjusted EBITDA are Non-GAAP Financial Measures.
Please read page 8 of the Company’s MD&A for 2nd Quarter 2010 for
No regulatory authority has approved or disapproved the information
contained in this news release
Forward Looking Information
This news release includes
certain statements that may be deemed "forward-looking statements." All
statements in this release, other than statements of historical facts,
that address future production, reserve or resource potential,
continuity of mineralization, exploration drilling, operational
activities, production rates, costs to completion and events or
developments that the Company expects, or is targeting, are
forward-looking statements. Although the Company believes that the
expectations expressed in such forward looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially
from those in the forward looking statements and may require achievement
of a number of operational, technical, economic, financial and legal
objectives. The likelihood of continued future mining at Campo Morado is
subject to a large number of risks, including obtaining lower than
expected grades and quantities of mineralization and resources, lower
than expected mill recovery rates and mining rates, changes in and the
effect of government policies with respect to mineral exploration and
exploitation, the possibility of local disputes including blockades of
the company’s property and/or labor disputes, the possibility of adverse
developments in the financial markets generally, fluctuations in the
prices of zinc, gold, silver, copper and lead, obtaining additional
mining and construction permits, preparation of all necessary
engineering for ongoing underground and processing facilities as well as
receipt of additional financing to fund mine construction, development
and operation, if needed. Such funding may not be available to the
Company on acceptable terms or on any terms at all. For more information
on the Company and the risk factors inherent in its business, investors
should review the Company's Annual Information Form at www.sedar.com.
Information Concerning Estimates of Indicated Resources
news release uses the term "indicated resources". Farallon advises
investors that although these terms are recognized and required by
Canadian regulations (under National Instrument 43-101 Standards of
Disclosure for Mineral Projects), the U.S. Securities and Exchange
Commission does not recognize them. Investors are cautioned not to
assume that any part or all of the mineral deposits in this category
will ever be converted into reserves.
SOURCE Farallon Mining Ltd.
For further information: For further information:
For further details on Farallon, please visit the Company's website at www.farallonmining.com or contact Neil MacRae, Investor Relations Manager, at (604) 638-2160, or within North America at 1-877-688-2050