Pan American Goldfields Ltd. Reports New Record Production from its Cieneguita Property, Mexico
VANCOUVER, Dec. 20, 2012 /PRNewswire/ – Pan American Goldfields Ltd. (OTCQB:
“MXOM”) (the “Company”) is pleased to announce new record production
results for the month of November, 2012 at its 80% owned Cieneguita
project, Chihuahua, Mexico.
The Cieneguita project is currently being operated on a pilot basis
under an agreement between the Company and Minera Rio Tinto (“MRT”), a
private Mexican company. The following production is as reported to the
Company by MRT and is still subject to final reconciliation and some
adjustments with particular respect to tonnes and grades produced and
shipped from the facility at Choix. As part of the Company’s joint
venture agreement with MRT, the Company receives 29% of net cash flow
until December 31, 2012. The Company’s share of net cash flow increases
to 35% as of January 1, 2013 and remains at this level through the
remainder of the year at which time the 600 tonne per day pilot
operation is slated to cease production. The Company maintains an 80%
ownership interest in the project for which a Preliminary Economic
Assessment (“PEA”) is near completion evaluating a possible 6,000 -7000
tonne per day operation. A feasibility study is planned to commence in
early 2013 following completion of the PEA.
Gold and silver production levels have increased during November from
the previously reported record levels in October with average daily
production of ore processed during the month at about 580 tonnes per
day. The addition of a conditioner, disc filter and an additional
flotation cell and a conventional thickener are expected to be result
in a further increase to about 800 tonnes per day. Higher mined gold
grades during the month resulted in gold production reporting to the
sulfide concentrate increasing to 758 ounces compared to the 506 ounces
produced in October. Silver production also increased to 75,330 ounces
compared to 68,758 ounces in October. It should be noted that
production has steadily increased during 2012 from the low levels
reached in March 2012 when production at Cieneguita was only 629 ounces
gold and 6,517 ounces silver.
Mining continues in an area of higher silver and gold grades which
appear to increase with depth. This area is contiguous with, but
located to the northeast of where MRT has been mining in the past. MRT
has given guidance that it expects this area currently being mined to
be sufficient to supply the pilot operation for the duration of 2013
based on an average processing rate of 20,000 tonnes per month.
The anticipated production capacity of 800 tonnes per day, if maintained
for the entire year, would result in approximately 280,000 tonnes being
mined from the 20,087,0000 tonne deposit during 2013. The higher silver
and gold grades being mined, an increase in metal recoveries over prior
months, and the higher daily production levels (currently 580 tonnes
per day) have resulted in significantly higher amounts of contained
ounces of silver and gold being shipped to Trafigura.
The increased silver and gold production at Cieneguita will result in a
significantly higher level of payments to the Company under our
agreement with MRT. The terms of the agreement call for the Company to
receive its interest in the net cash flow on a quarterly basis when all
costs are deducted from revenues are received from sales to Trafigura.
The Company does, however, receive an advance payment every month of US
$150,000. This amount is then deducted from the money owed to the
Company by MRT at the end of the three month period and the reconciled
amount then paid.
Specific mine production and processing information for the month of
November 2012 is presented below for the operations at Cieneguita.
November ANÃLISIS 1 to 30 Nov-12 WEIGHT % g /ton RECOVERIES CONTENT GRMS. TM Cu Pb Zn Fe Au Ag Au Ag Au Ag Heads 17,408 0.05% 0.74% 1.07% 1.82% 1.49 136 25,944.8 2,373,121.8 Flotation 2,040 0.40% 6.11% 6.27% 11.66% 11.55 1,149 90.8% 94.4% 23,566.7 2,342,983.7 (Bilk) Conc. Flotation 15,368 0.00% 0.08% 0.29% 0.54% 0.15 9 9.2% 5.6% 2,378.1 139,773.8 Tailings 17,408 0.05% 0.78% 0.99% 1.85% 1.49 143 100% 100% 25,945 2,482,758 TPD 580 TOTAL Oz 757.698 75330 = TOTAL Eq. 56.667 Oz Au = 2,087
During November 2012, five truckloads of Ag-Au-Pb concentrate totaling
256 tonnes were shipped to Trafigura from the Choix facility.
About Pan American Goldfields
Pan American Goldfields is a precious metals mining and exploration
company. Its focus is the production of gold and silver and the
development and expansion of its Cieneguita mine in Mexico’s booming
Sierra Madre gold-silver belt. The Cieneguita deposit contains a NI
43-101 compliant resource of 1.1 million Measured and Indicated gold
equivalent ounces. This resource contains 20,087,000 Measured and
Indicated tonnes grading 0.74 g/t gold and 51.8 g/t sliver and 453,000
Inferred tonnes grading 0.99 g/t gold and 34.2 g/t silver. M3
Engineering of Tucson is managing a PEA for a larger operation which is
expected to be completed Q1, 2013. A feasibility study is planned to
commence immediately following the PEA.
Pan American also has a non-core, large porphyry-style copper-gold
exploration project in on the Argentine side of the Maricunga gold
On behalf of the Board of Directors,
Neil Maedel, Chairman
Safe Harbor Disclosure
The information in this press release contains forward-looking
statements regarding future events or the future financial performance
of the Company. Please note that any statements that may be considered
forward-looking are based on projections; that any projections involve
judgment, and that individual judgments may vary. Moreover, these
projections are based only on limited information available to us now,
which is subject to change. Although those projections and the factors influencing them will
likely change, we are under no obligation to inform you if they do.
Actual results may differ substantially from any such forward looking
statements as a result of various factors, many of which are beyond our
control, including, among others, the timing and outcome of our
feasibility study on our Cieneguita Project; the costs and results of
our initial production activities on our Cieneguita Project; the future
financial and operating performances of our projects; the estimation of
mineral resources and the realization of mineral reserves, if any, on
our existing and any future projects; the timing of exploration,
development, and production activities and estimated future production,
if any; estimates related to costs of production, capital, operating
and exploration expenditures; requirements for additional capital and
our ability to raise additional capital on a timely basis and on
acceptable terms; government regulation of mining operations,
environmental risks, reclamation and rehabilitation expenses; title
disputes or claims against our existing and any future projects; and
the future price of gold, silver, or other minerals. These and other
factors can be found in our filings with the SEC. The Company
undertakes no obligation to release publicly the results of any
revision to these forward-looking statements to reflect events or
circumstances following the date of this release.
SOURCE Pan American Goldfields Ltd.