Zaruma Resources Inc., (TSX-ZMR)
TORONTO, Oct. 17 /CNW/ - Zaruma Resources Inc. today provided a further
update on the progress of the Luz del Cobre copper project in the State of
The Company stated that it has not yet been able to arrange additional
project financing to finish the development and construction of the mine and
production plant. Of the estimated US$37 million capital cost of the project,
US$22 million has been paid to contractors and suppliers, the full amount
provided under the Glencore International AG financing commitment.
Although discussions continue with parties interested in financing the
project to production, the outcome of these discussions is not assured, and
the time required to reach an agreement remains unpredictable. In the
meantime, the Company's Mexican subsidiary, Minerales Libertad, S.A. de C.V.,
has suspended further onsite development..
Field activity started in November, 2007 and open pit mining commenced in
September, 2008, with the ore being stockpiled for expected crushing and
stacking on the leach pad starting at the end of November. Virtually all the
equipment to complete the electricity generating plant and the copper SX-EW
production plant has been ordered, has been received, or is ready for shipment
to the site. The timetable had projected the first production of copper
cathodes in February, 2009, but the suspension of activity announced today
will directly impact this date.
Thomas Utter, President of Zaruma stated that the current price of copper
was not indicative of where the supply and demand for the metal will settle
prices for future deliveries, and that he was optimistic about successfully
completing financial arrangements to bring the project to production.
Exploration drilling in the Sapo-Carrizo area is continuing, with
1,400 metres of the 2,000 metre programme drilled in 6 holes. Geological
logging has been completed on the first two holes at Carrizo, (No.1 to 475m,
and No.2 to 351m down-hole depth) and identified several very encouraging
characteristics. Both holes penetrated breccia essentially throughout their
length, supporting the possibility of a favourable host body with significant
width and depth. The highly fractured rocks contain sulphides in veinlets and
finely dispersed disseminations. Pyrite dominates the sulphides, but
copper-minerals such as chalcopyrite were noted in significant quantities
along with local lesser concentrations of chalcocite, bornite and pyrrhotite.
Assays are pending.
Zaruma Resources Inc. is listed on The Toronto and Frankfurt Stock
Exchanges, (symbol: ZMR). Common shares 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 securing additional
funding to continue its development programs.
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 52 662 2148808,
email@example.com; Frank van de Water, CFO and Secretary, Tel.: (416)