TORONTO, Nov. 1 /CNW/ - Zaruma Resources Inc., (TSX-ZMR) is pleased to
announce that the Company has awarded the Engineering, Procurement,
Construction and Management, ("EPCM") contract for the Luz del Cobre Copper
Project, (San Antonio, Sonora, Mexico) to M3 Engineering and Construction,
Inc., (Tucson, Arizona and Hermosillo, Sonora).
On site activities have started, with the current estimate to first
production from Luz del Cobre being 14 months. As outlined in a Technical
Report on the project, prepared in compliance with NI 43-101 standards, (news
release November 10, 2006), Luz del Cobre is designed to produce 15 million
pounds of cathode copper per year, with a pre-tax net operating cash flow
estimated to average US$19.4 million per year for at least five years, at a
copper price of US$2.23 per pound. The London Metal Exchange price for copper
delivered in 2009 is currently approximately US$3.30 per pound.
The Company is also pleased to announce the appointment of Michael R.
Carter as General Manager of the Luz del Cobre Project. Mr. Carter is a
geologist with more than 35 years experience in the development, design,
construction and operation of gold and copper projects.
The President and CEO of Zaruma, Thomas Utter, commented that: "We are
very pleased with Mike's appointment. His experience in comparable and larger
projects, and his specific experience working in the State of Sonora, where he
was responsible for the overall development, construction and operations of
major open pit, heap leach gold projects, will strongly support the Company in
achieving its objective of developing Luz del Cobre on a fast-track basis. We
are also pleased about the EPCM contract with M3, a company with an exemplary
track record in building similar copper projects in Mexico".
As announced on October 5, 2007, development drilling commenced on
October 1 on the open end of the Luz del Cobre ore body, and moved to the
Trion area, a mineralized exploration target zone 1000 metres to the west
immediately thereafter. Assays are pending at this time. The initial programme
for this area calls for 3,300 metres to be drilled over three to four months.
Zaruma Resources Inc. is listed on The Toronto and Frankfurt Stock
Exchanges, (symbol: ZMR). Common shares outstanding: 110,829,251.
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 programmes.
Dr. Thomas Utter, Dr.Phil.Nat, Dipl. Geo., is the "Qualified Person" as
defined in NI 43-101 and is responsible for the technical information
presented in this news release.
For further information:
For further information: Zaruma Resources Inc., 20 Toronto Street, 12th
Floor, Toronto ON, M5C 2B8, Canada, Fax: (416) 367-3638, email@example.com,
www.zaruma.com; Dr. Thomas Utter, President and CEO, Tel.: 521 662 222 0063,
521 662 210 5650, firstname.lastname@example.org; Frank van de Water, CFO and
Secretary, Tel.: (416) 869-0772, email@example.com