TSX Venture Exchange Symbol: NWM
Shares Outstanding: 479,933,610
TORONTO, Jan. 17, 2012 /CNW/ - NWM Mining Corporation (the "Company" TSX-V: NWM) is pleased to provide an operational update for the quarter ended December 31, 2011. Commissioning of the Lluvia-Jojoba mine was ongoing during the fourth quarter ("Q4") with significant progress being made towards commercial production.
During the fourth quarter, 507,442 tonnes of ore was mined from the Creston pit and stacked on leach pads for gold recovery. This ore contained 8,312 ounces of gold, of which 4,984 ounces are expected to be recovered.
During Q4 of 2011 the Company sold 2,444 ounces of gold at a weighted average price of USD$1,691 for total proceeds of USD $4,132,804. At quarter end there were approximately 920 ounces of poured gold in inventory waiting to be refined. Gold production was successively higher for each month of the three months ending December 31, 2011. This trend is expected to continue into 2012 which will result in significant increases to Company cash flows, subject to constant gold prices, in the near future.
By the end of Q4 of 2011 construction of additional leach pad space was nearing completion. The first two lanes of the Lluvia Dos leach pad are operational and construction of lanes three and four will be finished by the end of January 2012. At current mining rates, existing leach pad space will provide for gold production until at least Q4, 2012. Completion of this first major pad construction phase will result in a significant reduction in monthly capital expenditures.
During Q4 of 2011 NWM continued to advance construction at the Lluvia-Jojoba mine by extending the size of the leach pads. The Company also invested in improving the ADR gold recovery plant in order to maximize the recovery of gold required for operational ramp up. Increasing gold production is improving Company cash inflows. This, coupled with the completion and scale down of capital expenditures required for pad development, is positioning NWM for positive cash flow as the Company nears commercial production at the Lluvia-Jojoba gold mine.
An exploration program consisting of trenching and channel sampling is in progress at the Campamento zone south of the La Jojoba deposit. Results of this ongoing program will be published in due course. This is a low budget exploration program that is taking advantage of near surface mineralization to provide meaningful information which can be incorporated into the current exploration model.
NWM is an emerging gold producer with two currently defined ore bodies containing NI 43-101 compliant gold reserves and resources. The Company is focused on demonstrating profitable operations at the Lluvia-Jojoba gold mine and on growing reserves and resources through exploration.
For more information please see NWM's website at www.nwmcorp.ca
Neither the TSX 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 of this release
For further information:
|Contact:|| Chris Berlet, President & CEO or Chris Chadder, CFO
Phone: 416-364-6799 Fax: 416-364-2595