Timmins Gold Corp.: San Francisco Mine Update
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 17, 2008) – Timmins Gold Corp. (the “Company”) (TSX VENTURE:TMM) provides the following update on its recent activities at its San Francisco Mine in Northern Sonora, Mexico.
The new crushers, conveyors and screens are being delivered to the mine. The new Sandvik model CH660 crushers have been designed and calibrated for the rock type and capacity of the mine to maximize throughput and minimize down time. They have a current capacity to crush 3,500,000 tons of ore per year which will result in the planned production of 80,000 ounces of gold per year and have been designed for the future expansion of capacity with minimal additional cost. The crushers are scheduled to be fully operational by year end.
The refurbishing of the primary crusher has been completed and the primary crusher is also scheduled to be fully operational by year end. In addition the gold plant has been refurbished and is currently being tested.
The arrival of the new crushers has taken place only one month after Timmins Gold received all the local, state, and federal permits required to initiate production at the mine. These permits include the Environmental Impact Statement from the Environmental Protection Authorities (SERMANAT), the Change of Land Use permit, and the permit for the use of industrial explosives issued by the State of Sonora and Mexican Military authorities.
The Environmental Impact Statement and the Change of Land Use approval come after an extensive environmental study of the land on which the mine is located, as well as the surrounding community, and were the final requirements necessary to initiate operations.
All key personnel including the mine manager, pit superintendent, gold plant superintendent and metallurgical lab superintendent have been hired.
As part of its program to implement the highest standard of social responsibility Timmins Gold has completed the agreement between the local community and the previous operator for the purchase of the land on which the mine is situated.
In July of 2008 Timmins Gold completed a private placement for net proceeds of $18.5 million. The proceeds from this private placement are providing the capital required for the purchase of the new equipment and the balance of the cost of the refurbishment of the primary crusher and the gold plant which were already on site. Timmins Gold is currently reviewing offers for additional capital and working capital requirements.
The San Francisco gold mine is located along the main Pan American highway approximately 150 km north of Hermosillo, in the Northern Mexican State of Sonora. It is a past producing open pit heap leach operation with a gold plant with a capacity in excess of 80,000 ounces of gold per year. The mine is the subject of a pre- feasibility study dated March 31, 2008 prepared by Micon International Limited which supports the economic viability of the mine.
This News Release contains forward-looking statements. Forward- looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans, “anticipates”, believes”, “estimates”, “predicts”, “potential”, or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Timmins Gold does not intend to update any forward-looking statements to conform these statements to actual results.
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