Processing on a full time basis with all systems functioning with commercial reliability and availability
BROOMFIELD, CO, March 22 /CNW/ - Mexoro Minerals Ltd (OTCBB:"MXOM") (the "Company") today announced that it has attained full commercial production operations at its Cieneguita gold mine and mill in Chihuahua, Mexico. Operations have been conducted and sustained fully around the clock, 7 days a week for over 30 days with minimal stoppages. These achievements have been made possible by the establishment of additional water supply systems and improvements in the reliability of the power transmission and delivery facilities. This now enables the Company to focus on optimizing recoveries and incrementally increasing throughput of ore to the mill.
All required permanent personnel to operate the mine and mill at their planned capacities have been hired and are on the job. This now assures the Company's ability to mine and process the required tonnages to operate the mill on a continuous 24/7 basis with a feed tonnage and grade as originally planned. With the improvements and the anticipated increases in process performance, the Company anticipates that its production rate of 35,000 gold equivalent ounces per year for the joint venture with the corresponding net cash flows will be reached. To date the mill has produced 1,200 tons of primary concentrates, of which 800 tons have been shipped to the nearby concentrator at Choix for regrinding and final flotation and sale under the Company's concentrate sales contract with Trafigura, Ltd. The Company anticipates that the first regrinding operations and the first sale of concentrates will occur by the end of March.
At the mine, ore production has proceeded as originally planned, and stripping has advanced more rapidly than planned. At the present time, stripping has exposed sufficient material to supply full-time feed to the mill for the next 6 months. Stripping is now ongoing in additional areas to allow for proper blending of mined material to maintain a constant 3 g/ton gold equivalent grade for the feed to the mill.
"We are delighted with the fast and efficient completion of the mill and the smooth operational start-up that has taken place at Cieneguita," said George Young, president of Mexoro. "The Cieneguita joint venture team, led by Minero Rio Tinto and our Chairman Mario Ayub, have demonstrated their value in bringing the mill completely on line in less than 6 months from the initiation of development activities. Our now proven capability to build and operate a mine, on its own, creates significant additional value for our shareholders as we continue to advance what I consider to be an exceptional exploration portfolio."
About Pan American Goldfields/Mexoro Minerals
Pan American Goldfields/Mexoro Minerals is a Chihuahua, Mexico based gold producer and exploration company. It is a specialist in exploration, mine development and production in Mexico's booming Sierra Nevada Gold Belt. The company's most advanced project is its now producing Cieneguita Gold Mine where a feasibility study to significantly increase the mine's already growing production profile is underway. Pan American is a well capitalized junior gold producer as cash flow from its gold production and cash on hand funds its current exploration programs are now underway at Cieneguita South, Piedras Blancas, and Sahuayacan as well as at the Encino Gordo Project.
On behalf of the Board of Directors,
George S. Young, President
Safe Harbor Disclosure
The information in this press release contains forward-looking statements regarding future events or the future financial performance of the Company. Please note that any statements that may be considered forward-looking are based on projections; that any projections involve judgment, and that individual judgments may vary. Moreover, these projections are based only on limited information available to us now, which is subject to change. Although those projections and the factors influencing them will likely change, we are under no obligation to inform you if they do. Actual results may differ substantially from any such forward looking statements as a result of various factors, many of which are beyond our control, including, among others, the timing and outcome of our feasibility study on our Cieneguita Project; the costs and results of our initial production activities on our Cieneguita Project; the future financial and operating performances of our projects; the timing and amount of funds received from the sale of our Guazapares Project the estimation of mineral resources and the realization of mineral reserves, if any, on our existing and any future projects; the timing of exploration, development, and production activities and estimated future production, if any; estimates related to costs of production, capital, operating and exploration expenditures; requirements for additional capital and our ability to raise additional capital on a timely basis and on acceptable terms; government regulation of mining operations, environmental risks, reclamation and rehabilitation expenses; title disputes or claims against our existing and any future projects; and the future price of gold, silver, or other minerals. These and other factors can be found in our filings with the SEC. The Company undertakes no obligation to release publicly the results of any revision to these forward-looking statements to reflect events or circumstances following the date of this release.
SOURCE MEXORO MINERALS LTD.
For further information: For further information: Christopher Anderson, (604) 628-7065