Farallon Announces First Quarter Production Results and Conference Call

    VANCOUVER, April 21 /CNW/ - Dick Whittington, President and CEO of
Farallon Resources Ltd. ("Farallon" or the "Company") (TSX:FAN) is pleased to
announce the production results for the first quarter of 2009 at the G-9 Mine
in Guerrero State, Mexico. The mine produced zinc, copper and lead
concentrates containing 16.9 million pounds of zinc, 1.2 million pounds of
copper, 0.3 million pounds of lead, 229,500 ounces of silver and 3,300 ounces
of gold. The Company will host a conference call tomorrow, Wednesday April
22nd, at 11:00 AM Eastern Time (8:00 AM Pacific Time) to discuss the First
Quarter Production results. The call in details are provided below.
    The Company remains on track to achieve its key production targets and
goals for the balance of the year. Key highlights from operating results for
the First Quarter of 2009 at the G-9 Mine are as follows:

    -   Commenced mining activity in the high-grade Southeast zone and
        ramped-up the mine and mill operations to design throughput rates of
        1,500 tpd. As a result of access to the main mining area, a step-
        change improvement was made in mine and mill production during the
        month of March and commercial production was declared effective,
        April 1, 2009 (see news release dated April 6, 2009).
    -   Produced 14,800 tonnes of zinc concentrate, 3,000 tonnes of copper
        concentrate and 650 tonnes of lead concentrate. Concentrates are
        trucked to the Port of Manzanillo and the Company receives advance
        payments from Trafigura totaling 90% of the value on a regular basis.
    -   Completed concentrate shipments of approximately 10,800 tonnes of
        zinc concentrate, 2,100 tonnes of copper concentrate and 1,300 tonnes
        of lead concentrate. The Company received provisional payments for
        100% of the value of the concentrates from these shipments which were
        made in vessels loaded at the Port of Manzanillo. The Company also
        initiated silver sales to Silver Wheaton, totaling approximately
        57,000 ounces.

    In addition to these production highlights, two further key highlights
completed during and subsequent to the first quarter were as follows:

    -   Completed two equity placements totaling CDN $13.3 million at
        CDN $0.20/share with no associated warrant. The funds were used to
        repay the CDN $7.75 million in October promissory notes and for
        working capital.
    -   Resolved the outstanding litigation matters including successfully
        defending the mineral property interests at Campo Morado from a civil
        case launched by David Hermiston. These cases are now closed. As
        such, the Company received a refund of $375,000 from Silver Wheaton
        which was a portion of a waiver fee being held pending resolution of
        these matters.

    President and CEO Dick Whittington stated "I am very pleased to start
reporting production results at the G-9 Mine, as we are now a fully
operational mining company. The major components of our operation are
currently working well, however, we still have work to do to improve on some
of the by-product recovery levels. With a plan in place and improving
operational experience at the site we anticipate that we will meet our design
targets in all areas of the mine and mill in the near future."

    Mining Operations

    During the period, the mine accessed and began mining mineralized
material from the high-grade Southeast zone. As a result, mine grades improved
consistently over the quarter and averaged 11.9% Zn, 1.7% Cu, 1.2% Pb and 190
g/t Ag during the month of March with 43,000 tonnes of mineralized material
mined. Further development activity continues in the Southeast zone to open
more mining faces for the second quarter. It is anticipated that mine grades
will average 11.5% Zn, 1.7% Cu and 1.1% Pb during the second quarter of 2009
as production continues from the Southeast zone.

    Mill Commissioning

    Mill commissioning took place throughout the period with the mill ramping
up to full commercial production on April 1, 2009. Mineralized material
processed through the mill during the commissioning and ramp-up period is
tabulated below.

                         G-9 Mill Material Processed
    Period                     Tonnes   -------------------------------------
                                         Zn%     Cu%     Pb%   Ag g/t  Au g/t
    July 1 to Sept 30, 2008    19,388    6.1    0.56    0.63     213     2.3
    Sept 30 to Dec 31, 2008    86,536    8.8    1.13    1.31     216     2.8
    Jan 1 to Mar 31, 2009     106,265    9.2    1.11    0.88     166     2.3

    During the month of March, mineralized material throughput was
approximately 43,000 tonnes or 92% of design throughput. Trucking of
concentrates to the port of Manzanillo continued and all concentrate produced
during the period will be sold under contract to Trafigura, Free On Board
("FOB") the port site. Concentrate produced during the commissioning and
ramp-up period is tabulated below.

                       G-9 Zinc Concentrate Production
    Period                         Tonnes      ------------------------------
                                                 Zn%      Ag g/t       Au g/t
    July 1 to Sept 30, 2008         1,693       46.5        183         1.72
    Sept 30 to Dec 31, 2008        11,669       48.5        287         2.65
    Jan 1 to Mar 31, 2009          14,829       51.7        252         2.40
                      G-9 Copper Concentrate Production
    Period                         Tonnes      ------------------------------
                                                 Cu%      Ag g/t       Au g/t
    July 1 to Sept 30, 2008             0          -          -            -
    Sept 30 to Dec 31, 2008         1,943       16.6        588          8.0
    Jan 1 to Mar 31, 2009           3,015       17.8        694         10.4
                       G-9 Lead Concentrate Production
    Period                         Tonnes      ------------------------------
                                                 Pb%      Ag g/t       Au g/t
    July 1 to Sept 30, 2008           326       16.8        562         11.5
    Sept 30 to Dec 31, 2008           817       17.0        956         27.0
    Jan 1 to Mar 31, 2009             650       22.9      2,005         56.5

    Although the milling operations achieved design throughput rates, the
metallurgical performance is still ramping up towards design. Now that the
mine and mill are operating at 1,500 tpd the focus has shifted to improving
overall metal recovery to concentrates. Average metal recovery achieved during
the first quarter is tabulated below.

                     Jan 1 to Mar 31, 2009      Recovery
                     Zinc                          79
                     Copper                        45
                     Lead                          16
                     Silver                        40
                     Gold                          43

    The Company will host a conference call tomorrow, Wednesday April 22nd,
at 11:00 AM Eastern Time (8:00 AM Pacific Time) to discuss the First Quarter
Production results and performance. The toll-free number for this conference
call is 1-800-590-1508 or 1-416-644-3423. After the call the Company will post
the audio of the conference call on our website at www.farallonresources.com.
Financial statements for the First Quarter 2009 will be released on or about
May 15, 2009.
    Farallon advanced the G-9 polymetallic (zinc, copper, silver, gold, lead)
project at its Campo Morado Property in Mexico through a 'Parallel Track'
program in 2007 and 2008. Surface facilities were largely completed in mid
2008, followed by mill commissioning and underground stope development during
the balance of 2008. As of April 1st, the mine is now in commercial production
of 1500 tpd. Vessel shipments of concentrates commenced in February 2009 and
are now occurring on a regular basis. Exploration is currently suspended
however, there are numerous untested exploration targets available on the
Company's 100% owned Campo Morado property. Exploration remains a key
component of the Company's strategic plan going forward, and will be
reinitiated as soon as economic conditions permit.


    J.R.H. (Dick) Whittington
    President & CEO

    No regulatory authority has approved or disapproved the information
    contained in this news release

                         Forward Looking Information
    This release includes certain statements that may be deemed
"forward-looking statements." All statements in this release, other than
statements of historical facts, that address future production, reserve or
resource potential, continuity of mineralization, exploration drilling,
operational activities, production rates, costs to completion and events or
developments that the Company expects are forward-looking statements. Although
the Company believes that the expectations expressed in such forward looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ
materially from those in the forward looking statements and may require
achievement of a number of operational, technical, economic and legal
objectives. The likelihood of continued future mining at Campo Morado is
subject to a large number of risks, including obtaining lower than expected
grades and quantities of mineralization and resources, lower than expected
mill recovery rates and mining rates, changes in and the effect of government
policies with respect to mineral exploration and exploitation, the possibility
of local disputes including blockades of the company's property, the
possibility of adverse developments in the financial markets generally,
fluctuations in the prices of zinc, gold, silver, copper and lead, obtaining
additional mining and construction permits, preparation of all necessary
engineering for ongoing underground and processing facilities as well as
receipt of additional financing to fund mine construction, development and
operation, if needed. Such funding may not be available to the Company on
acceptable terms or on any terms at all. There is no known ore at Campo Morado
and there is no assurance that the mineralization at Campo Morado will ever be
classified as ore. For more information on the Company and the risk factors
inherent in its business, investors should review the Company's Annual
Information Form at www.sedar.com.

For further information:

For further information: please visit the Company's website at
www.farallonresources.com or contact Investor Services at (604) 638-2160 or
within North America at 1-800-667-2114

Organization Profile

Farallon Mining Ltd.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890