TORONTO, April 12 /CNW/ - Win-Eldrich Mines Limited ("Win-Eldrich" or
the "Company") (TSXV: WEX), owner of the Ashdown molybdenum mine in
Denio, Nevada, via its wholly owned US subsidiary, Win-Eldrich Gold
Inc., is pleased to announce that molybdenum production increased
significantly in the first quarter of 2011.
Due to a major downturn in molybdenum prices in November 2008,
production was put on standby. However, as moly prices recovered in
2009 and 2010, the Company developed access to additional reserves
(identified in the March 27, 2008 NI 43-101 technical report) more than
150 feet below the existing workings, enabling enhanced production
Since January 1, 2008, the Company has produced 944,974 lbs of
molybdenum from the 3,847,930 lbs of total mineral reserves stated in
the NI 43-101 report. Before Ashdown was put on standby in late 2008,
average quarterly production was roughly 102,000 lbs. per quarter, a
rate that was again achieved in the first quarter of fiscal 2011 due to
the aforementioned improvement in reserves access.
2011 Q1 only
Perry Muller, CEO of Win-Eldrich, comments: "We've been able to increase
both the recovered and concentrate grades over the past 27 months,
achieving a level of production last quarter essentially in line with
the peak production rates of 2008. Based on the rate of increase of
the first quarter production rates, Ashdown is on track to achieve a
profitable year. I'd like to thank all the shareholders and employees
who believed we could recover from the 2008 moly price decline."
Ashdown Mill Expansion - Also, as part of the recent announcement of the letter of intent with
American Mining Corporation for the expansion of the Ashdown Mill, the
Comany has begun the process of permitting for processing gold ore in a
second 100 ton per day flotation circuit.
Earl Harrison, VP of Operations, comments: "Crews continue to mine the
high grade moly zone at the north end of the 4350 level, which exceeds
3% moly grades. Proposed gold development work, scheduled to commence
in the first week of May, will include refurbishing 500 feet of
existing crosscuts to the east and 100 feet of crosscut to the
northeast. At that point, a 150 foot vertical raise will be completed
to create access to the drilled gold ore body."
Investor Relations Firm - Effective April 1, 2011, Win-Eldrich has retained San Diego Torrey
Hills Capital, Inc. ("Torrey Hills Capital") to act as investor
relations consultants to the Company.
Torrey Hills Capital is a leading investor and financial public
relations firm specializing in small and micro-cap companies, primarily
in the natural resource sector located in Del Mar, California and
beneficially owned and controlled by Clifford Mastricola. Torrey Hills
Capital will increase awareness about Win-Eldrich through its
established relationships with investment professionals, investment
advisors, and money managers focused on the microcap market space. This
will allow Win-Eldrich to build and maintain an informed investor
audience in both the U.S and Canadian marketplace.
Torrey Hills Capital will also develop a profile on Win-Eldrich for
coverage on its website, www.babybulls.com, a website developed to showcase and provide exposure for emerging
micro-cap companies to an audience of proven micro-cap investors.
Torrey Hills Capital has been engaged for an initial term of 12 months
at a monthly fee of US$6,000 with an option to renew for a further 12
month term at the mutual agreement of both parties. In addition,
Win-Eldrich has agreed to the granting of options to purchase 125,000
common shares of the Company ("Common Shares", each a "Common Share")
at a price of CDN$0.45 per Common Share. The Options shall be subject
to the terms of the Company's stock option plan, and will vest in
accordance with the provisions therein and the policies of the TSX
This news release includes certain forward-looking information and
forward-looking statements (collectively "forward looking statements")
concerning the future performance of our business, its operations and
its financial performance and condition, as well as management's
objectives, strategies, beliefs and intentions. Forward-looking
statements are frequently identified by such words as "may", "will",
"plan", "expect", "anticipate", "estimate", "intend" and similar words
referring to future events and results, including in respect of the
increase in production levels at the Ashdown mine. Forward-looking
statements are based on the current opinions and expectations of
management. All forward-looking statements are inherently uncertain
and subject to a variety of risks and uncertainties, including the
speculative nature of mineral exploration and development generally and
specifically in respect of the interpretation of the geology,
continuity, grade and size of mineral deposits, unanticipated
operational or technical difficulties, fluctuating commodity prices,
competitive risks and the availability of financing, changes in laws or
regulations, changes in the financial markets and changes in general
economic conditions, as described in more detail in our recent
securities filings available at www.sedar.com. Such forward-looking
statements are based on a number of assumptions, including but not
limited to the level and volatility of the price of molybdenum, the
availability of financing, the accuracy of reserve and resource
estimates and the assumptions on which those estimates are based and
the ability to achieve and maintain certain operational efficiencies.
Should one or more risks and uncertainties materialize or should any
assumptions prove incorrect, then actual events or results may differ
materially from those expressed or implied in the forward
looking-statements and we caution against placing undue reliance
thereon. We assume no obligation to revise or update these
forward-looking statements, except as required by applicable law.
NEITHER THE TSXV VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Win-Eldrich Mines Limited
For further information:
Perry Muller, President and Director of Win-Eldrich, at (402) 435-7206.