FOCUS IS ON AREAS SURROUNDING THE EXISTING G-9 MINE
VANCOUVER, Oct. 8 /CNW/ - Farallon Mining Ltd. ("Farallon" or the "Company")(TSX:FAN) is pleased to announce the resumption of the exploration program at the Campo Morado Property in Guerrero State, Mexico. The Company will spend approximately $2.7 million on this 20,000 metre core drilling exploration program over the next two quarters.
In July 2008, the Company suspended exploration at Campo Morado to focus on the final stages of commissioning at the G-9 Mine and to ensure that the mine was brought into full commercial production. As of April 1, 2009, the mine achieved this objective and successfully reported $5.7 million in cash flow from operations in the 2nd Quarter, 2009. Now that the mine is generating operating cash flows, the Company will resume exploration on the Campo Morado property. The first priority is to add additional resources to the G-9 Mine in order to further extend the mine's life. The discovery of the Abajo deposit 200 metres below the original deposits proved that massive sulphide mineralization exists in at least two distinct stratigraphic horizons at Campo Morado. Additional exploration work will be done to test the potential of this newly recognized volcanic cycle.
President and CEO Dick Whittington said "We did not suspend the exploration program at the G-9 Mine because we ran out of exploration potential. We suspended exploration due to the world credit crisis and our desire to focus on bringing the G-9 Mine into full commercial production. Now that we are operating the G-9 Mine we wish to build off the asset we have in the G-9 Mine and pursue further discoveries on this great property. I am excited about the exploration potential going forward and it's time to turn the exploration tap back on."
Farallon's G-9 zinc, copper, silver, gold and lead mine at the Campo Morado Property in Mexico reached commercial production in April 2009. 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
No regulatory authority has approved or disapproved the information
contained in this news release
Forward Looking Information
This 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, 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. There are no mineral reserves at Campo Morado and there is no assurance that the mineralization at Campo Morado will ever be classified as mineral reserves. 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.
SOURCE Farallon Mining Ltd.
For further information: For further information: on Farallon Mining Ltd., 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 1-800-667-2114