Zaruma Resources Files Technical Report on the Sapuchi Gold Project and Resource Estimate Update on the Luz del Cobre Copper Project.



    TORONTO, June 16 /CNW/ - Zaruma Resources Inc., (TSX-ZMR) is pleased to
announce that a Technical Report on gold and copper projects located on the
Company's wholly owned San Antonio property in Sonora, Mexico, in accordance
with NI 43-101 reporting standards has been filed on SEDAR (www.sedar.com).
The Technical Report provides a resource estimate and preliminary economic
assessment on the Sapuchi Gold Project and updates the resource estimate on
the Luz del Cobre Copper Project.
    The Technical Report was completed by P&E Mining Consultants Inc.,
("P&E"), Brampton, Ontario. Qualified Persons and Independent Consultants
Eugene Puritch, P.Eng., Tracy Armstrong, P.Geo., and Malcolm Buck, P.Eng.,
authored the resource estimates and preliminary economic assessment. The
operating plan and cost estimates for the Sapuchi Gold Project were reviewed
and reported on by Rolly Nice, AusIMM, Independent Metallurgical Engineer,
Sydney, Australia.
    At Sapuchi, within an optimized open pit shell, an oxide leachable
mineral resource of 98,400 ounces of contained gold was estimated applying a
cut-off grade of 0.30 g/t and a 24 month trailing average gold price of
US$805/oz. The resulting estimated tonnes and grade for potentially mineable
areas are:

    
    Sapuchi Oxide Gold Mineral Resources:

    -------------------------------------------------------------------------
    Classification         Tonnes         Au (g/t)        Au (oz)
    -------------------------------------------------------------------------
    Indicated            2,220,000          1.04          74,300
    -------------------------------------------------------------------------
    Inferred              872,000           0.86          24,100
    -------------------------------------------------------------------------

    (1) Mineral resources which are not mineral reserves do not have
        demonstrated economic viability. The estimate of mineral resources
        may be materially affected by environmental, permitting, legal,
        title, taxation, sociopolitical, marketing, or other relevant issues.
    (2) The quantity and grade of reported inferred resources in this
        estimation are uncertain in nature and there has been insufficient
        exploration to define these inferred resources as an indicated or
        measured mineral resource and it is uncertain if further exploration
        will result in upgrading them to an indicated or measured mineral
        resource category.
    

    The mineral resources were estimated using the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and
Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on
Reserve Definitions and adopted by CIM Council December 11, 2005.
    The preliminary economic assessment is based on a mining rate of 3,000
tonnes per day, an overall average strip ratio of 1.55:1 and an 80% gold
recovery using heap leaching with cyanide. 79,000 ounces of gold are expected
to be produced over a period of 3 years, yielding an accumulated net operating
cash flow of US$28.8 million at a gold price of US$800/oz. Using existing
equipment and facilities in place at the temporarily suspended Luz del Cobre
copper project (Option A), and with an updated capital cost estimated of
US$3.9 million, the gold leaching operation could be placed into production
within about 4 months. With construction of a new leach pad and the purchasing
of an additional crusher and conveyors (Option B) the capital cost is
estimated at US$8.8 million.
    The project investment and pre-tax returns for Option A provide a
potential IRR of 223% and NPV's of US$21.1million and US$18.0 million at 5 and
10 percent discount rates, respectively. The project investment and pre-tax
returns for Option B provide a potential IRR of 89% and NPV's of US$16.4
million and US$13.8 million at 5 and 10 percent discount rates, respectively.
Based on the geological continuity and grade of the gold mineralized material,
the authors of the Technical Report believe an excellent potential exists to
place Sapuchi into production at the completion of a pre-feasibility or
feasibility study that would include the results of ongoing metallurgical
testing and updated capital and operating costs. The relative simplicity of
this project's development plan affords an opportunity to fast track
construction to take advantage of high gold prices, which would result in a
robust operating profit margin.
    Gold mineralization at Sapuchi occurs as a series of tabular bodies that
have been delineated by drilling and sampling of old workings along a distance
of approximately 300m in an east-west direction, approximately 150 m in a
north-south direction, and to a depth of approximately 75m. The mineralization
is open at three sides and unoxidized gold mineralization is present below the
currently estimated leachable resource. Mineralization appears to be
controlled by the intersection of northwesterly trending steep faults with a
series of low angle faults within receptive breccia.
    At Luz del Cobre a copper resource estimate update was completed on June
1, 2009 using a cut off grade of 0.29% Cu for oxide mineralization and 0.27%
Cu for the mixed oxide-sulphide mineralization and a 36 month trailing average
price of US$3.04/lb. Prior to this update, the combined resource disclosures
of May 13, 2008 and April 24, 2006 were in effect. The resource update of June
1, 2009 confirmed previous reporting and did not trigger any technical report
filing requirements. No new drilling was undertaken on the Luz del Cobre
Deposit since the filing of the press release on May 13, 2008. The current
estimate is:

    
    -------------------------------------------------------------------------
                  MEASURED              INDICATED       MEASURED & INDICATED
    -------------------------------------------------------------------------
    LUZ      Tonnes    Cu    Cu     Tonnes    Cu   Cu     Tonnes    Cu    Cu
    DEL  --------------------------------------------------------------------
    COBRE               %   lbs                %  lbs                %   lbs
                            mil                   mil                    mil
    -------------------------------------------------------------------------
    Oxide   387,000  0.89   7.6    521,000  0.71  8.2    908,000  0.79  15.7
    -------------------------------------------------------------------------
    Mixed 1,654,000  1.40  51.0  2,000,000  0.96 42.3  3,654,000  1.16  93.4
    -------------------------------------------------------------------------
    TOTAL 2,041,000  1.30  58.6  2,521,000  0.91 50.5  4,562,000  1.09 109.1
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                  INFERRED
    -------------------------------------------------------------------------
    LUZ      Tonnes    Cu    Cu
    DEL  --------------------------------------------------------------------
    COBRE               %   lbs
                            mil
    -------------------------------------------------------------------------
    Oxide    33,000  0.62   0.5
    -------------------------------------------------------------------------
    Mixed   156,000  0.61   2.1
    -------------------------------------------------------------------------
    TOTAL   189,000  0.61   2.5
    -------------------------------------------------------------------------
    

    In the independent Technical Report completed in 2006 by M3 Engineering
and Technology Corporation, ("M3"), Tucson, Arizona and P&E, Luz del Cobre was
projected to produce 73 million pounds of copper over a life of mine of five
and a half years. The current preliminary cash production costs estimated by
the Company are US$1.15 per pound of copper. With a copper price of US$2.20
per pound this results in a projected cash flow before taxes and interest for
the mine life of $45 million after recovery of estimated US$37 million of
capital cost.
    Work on Luz del Cobre was suspended in October 2008, four months before
the projected start-up of copper cathode production, as available funding was
insufficient to complete the development and plant construction. All aspects
of construction on the leach pad area and plant buildings were nearing
completion on the date of suspension. Mining commenced during the third
quarter, with 337,000 tonnes of overburden removed and 58,800 tonnes of ore
mined and stockpiled.
    Dr.Thomas Utter, President and CEO of Zaruma commented: "We are pleased
that the Company has a potentially viable gold mineral resource at Sapuchi and
we believe an excellent opportunity exists to place Sapuchi into production.
Furthermore, the re-confirmation of the Luz del Cobre copper resource supports
the reported feasibility of this asset which is validated by an increasing
trend in copper prices. We are in discussion with a number of parties to
obtain financing to put the Sapuchi Gold Project into production and to find a
solution to the default situation of the existing debt financing for the Luz
del Cobre project."
    This News Release contains forward-looking statements which are typically
preceded by, followed by or including the words "believes", "expects",
"anticipates", "estimates", "intends", "plans" or similar expressions.
Forward-looking statements are not guarantees of future performance as they
involve risks, uncertainties and assumptions, including, but not limited to
securing funding to continue its development programmes.
    The filing of the Technical Report will remove Zaruma from the Default
List and will be placed on the Refilings and Errors List at the Ontario
Securities Commission.

    Zaruma Resources Inc. is a pre-production mineral exploration company
listed on The Toronto and Frankfurt Stock Exchanges (symbol: ZMR). Common
shares currently outstanding: 117,608,747.





For further information:

For further information: Zaruma Resources Inc., 20 Toronto Street, 12th
Floor, Toronto ON, M5C 2B8, Canada, Fax: (416) 367-3638, service@zaruma.com,
www.zaruma.com; Dr. Thomas Utter, President and CEO, Tel: +1 521 662 148808,
thomas.utter@gmx.net; Frank van de Water, CFO and Sec, Tel.: (416) 869-0772,
fvandewater@on.aibn.com

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