(all figures expressed in US $)
TORONTO, Aug. 13 /CNW/ - Zaruma Resources Inc., (TSX-ZMR), today reported
on its activity for the six months ended June 30, 2008. The report will be
available later today on SEDAR and on the Company's website.
The Company reported that the development of the Luz del Cobre copper
project in Sonora, Mexico is proceeding well, with first production of copper
cathodes expected by the end of January, 2009. Field activity started in
November 2007, and currently all major capital cost items have been contracted
or committed. The project was initially expected to take 12 to 15 months to
put into production, so remains on schedule. Capital costs are expected to
approximate $35 million, which is 40% over the November 2006 feasibility study
estimates. Discussions are continuing with Glencore International AG,
("Glencore") regarding its participation in funding the increased capital
costs and working capital requirements for the project. The economic viability
of the project is not particularly sensitive to capital cost increases, with
the cash flow before interest and income taxes expected to exceed the capital
cost within the first two years of production.
The 2006, NI 43-101 compliant reported ore reserves provide for a five
and a half year mine life, producing 73 million pounds of copper. At a cash
cost of $1.55 per pound and an assumed copper price of $3.36, the net cash
flow before interest and taxes will be $138 million.
In a news release dated May 13, 2008, the Company reported that recent
drilling along a projected southwest extension of Luz del Cobre and a target
150 metres to the west had added 45,000 tonnes of measured resources with a
grade of 1% Cu, 508,000 tonnes of indicated resources of 0.81% Cu and 128,000
tonnes of inferred resources grading 0.64% Cu, adding six months to the mine
life. The two drilled extensions of copper mineralization are open ended.
Phase 1 of a work programme in an area called Sapo and Carrizo six
kilometres to the southwest of Luz del Cobre, has been completed, with the
exploration costs on the 1000 hectare area financed by a subsidiary of
Glencore on an earn-in basis. A 2000 metre drilling programme is expected to
commence next month testing geochemical and geophysical targets and surface
copper mineralization which the Company believes are part of a highly
prospective iron-oxide-gold-copper system.
During the six month period, all remaining share purchase warrants were
exercised for proceeds of $865,000.
Exploration and project administration costs written off were $397,000
for the six months compared to $362,000 for the six months to June 30, 2007.
The net loss for the six months to June 30, 2008 was $1,048,000 or $0.009
per share, compared with $719,039 or $0.007 per share in the same period in
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.
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.
For further information:
For further information: Zaruma Resources Inc., 20 Toronto Street, 12th
Floor, Toronto, ON, M5C 2B8, Canada, Fax: (416) 367-3638, firstname.lastname@example.org,
www.zaruma.com; Dr. Thomas Utter, President and CEO, Tel: +1 521 662 210 5650,
email@example.com; Frank van de Water, CFO and Sec, Tel.: (416)