TORONTO, Sept. 15 /CNW/ - Zaruma Resources Inc., (TSX-ZMR), reports that
a 2,000 metre drilling programme has started in the Sapo-Carrizo area located
7 kilometres west of the Luz del Cobre copper project, in the Company's 11,300
hectare San Antonio property (Sonora, Mexico).
As previously reported, a number of targets with oxide copper
mineralization have been identified in the Sapo-Carrizo area. The first drill
holes will test the Carrizo Ridge target which is located central to the
district along the mineralized trend and has been interpreted as a centre with
coincident intersecting structures, strong hydrothermal brecciation and
alteration, and associated strong magnetic anomalies. The drilling is expected
to be completed by the end of October and is being financed by a subsidiary of
Glencore International AG ("Glencore") on an earn-in phase on the 1000 hectare
At Luz del Cobre, open pit mining has started with the oxide ore being
stockpiled adjacent to the crusher platform. The jaw crusher is in the process
of being installed and progress on the lining of the valley leach pad suggests
that first stacking of ore should begin by the end of November.
Construction of the Solvent Extraction-Electrowinning (SX-EW) Plant is
proceeding well, with first production of copper cathodes expected by the end
of January, 2009. Field activity started in November 2007, and currently all
major capital cost items have been contracted or committed. The project was
initially expected to take 12 to 15 months to put into production, so remains
on schedule. Capital costs are expected to approximate $36 million, which is
40% over the November 2006 feasibility study estimate. The economic viability
of the project is not particularly sensitive to capital cost increases, with
the cash flow before interest and income taxes expected to exceed the capital
cost within the first two years of production. The 2006, NI 43-101 ore
reserves provide for a five and a half year mine life, producing 73 million
pounds of copper. At a cash cost of $1.55 per pound and an assumed copper
price of $3.36, the net cash flow before interest and taxes would be
Glencore is currently providing US$22 million toward the capital cost
under the financing agreement. As previously reported, Glencore has to right
to purchase all of the copper production at the London Metal Exchange price at
the time of delivery. Discussions are continuing with Glencore and other
interested parties regarding the funding of the increased capital cost and
working capital requirements of the project.
Zaruma Resources Inc. is a pre-production, mineral exploration company
listed on The Toronto and Frankfurt Stock Exchanges (symbol: ZMR). Common
shares currently 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, but not limited to
securing funding to continue its development programmes.
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)