September 18, 2008
Tara Gold Resources Projects Update
Tara Gold Resources Corp. (PINKSHEETS: TRGD) (FRANKFURT: T8N) is pleased to provide an update on its current pipeline of nine near production and exploration projects in Mexico.
Tara Gold is currently focused on closing the San Miguel sale; start-up of Gold/Silver/Copper production at Lluvia de Oro; start-up of Zinc/Lead/Silver production at Don Ramon and Lourdes; and assessing opportunities to advance Picacho and La Currita.Tara Gold also owns equity positions in some of its past/present partners and 80% of Tara Minerals Corp. (OTCBB: TARM), a public US company which explores and develops high-quality non-precious metals and mineral projects in Mexico.
Mr. Francis Biscan Jr., President of Tara Gold Resources, stated, "I believe Tara offers investors excellent value and exposure to growth with a diversified portfolio of both precious metals and base metals properties. With multiple multi-million ounce targets and near term production scenarios, Tara Gold is well positioned and offers tremendous value. A summary of our projects can be found below. I would also like to use this opportunity to express my support and appreciation for the new rules announced by the SEC yesterday to protect investors against noncompliant and naked short selling. Management believes its shareholders have suffered share value due to these factors and looks forward to seeing the SEC implement penalties sufficient to discourage such practices. We also trust they will carefully review the role Market Makers may be playing to enable these practices."
Project updates are provided below.
San Miguel, Chihuahua, Mexico
Significant Silver/Gold Discovery -- 104 million inferred silver equivalent ounces and growing
On August 27, 2008, Tara Gold sold its interest in the San Miguel project to Paramount Gold and Silver Corp. for 7.35 million common shares of Paramount. The transaction is expected to close during September 2008. Through the share holdings, Tara is positioned to benefit as the deposit continues to grow. Positive drill results, such as 10.3 g/t gold across 10.3 meters, continue to be announced with the discovery of a second high grade area. As a 13% holder of Paramount, Tara is also positioned to benefit from Paramount's additional regional holdings. Please visit http://www.paramountgold.com for additional information.
Lluvia de Oro, Sonora, Mexico
Gold/Silver/Copper Mine -- nearing production
Tara Gold has a 20% Net Cash Flow interest from the processing plant and continues to work with NWM Mining Corporation, its partner, to bring the former producing mine back to commercial production. NWM recently announced that the ongoing commissioning and ADR plant tune-up initiatives resulted in the pouring of its first gold dore button. The amount of crushed ore on the new heap is now approximately 185,000 tonnes and about 75% of the stacked ore has been placed under leach. Work has begun on the application for an explosives permit, required for future mining in the abandoned open pit mine. Please visit http://nwmcorp.ca for additional information.
Don Ramon and Lourdes, Sinaloa, Mexico (Tara Minerals Corp.)
Zinc/Lead/Silver Mine -- nearing production
Tara Gold owns 80% (30 million shares) of Tara Minerals (OTCBB: TARM) which is currently focused on bringing its 100% owned Don Ramon and Lourdes property, a high grade, Zinc, Lead and Silver project, into production. We are awaiting the completion of the processing plant. Mining will be focused on 7 areas which contain a combined average grade at the face of 11% Zn, 2.95% Pb and 409 g Ag/tonne. The plant is expected to produce at a capacity of 300 tonnes per day with expansion to 500 tonnes per day within one year. The concentrate produced will be sold at approximately 85% of commodity market prices. Plant commissioning is expected within the next quarter. Please visit http://taraminerals.com for additional information.
La Currita, Temoris, Mexico
Gold and Silver Mine -- nearing start-up
Tara Gold owns 100% of the La Currita mine and plant. The existing plant is capable of processing at a rate of approximately 300 tonnes per day. Management is currently assessing several available options to advance the property towards a 43-101 reserve estimation. In addition, the recommencement of production at La Currita is being considered once commercial production begins at Don Roman. Concentrate from La Currita will be shipped to Don Roman and sold, under the same terms, to established wholesale buyers. Two parallel mineralized vein systems have been identified -- the Sulema I and Sulema II. The head grade from the underground clean-up and Sulema II vein averages 200 g/t silver and 1.2 g/t gold while the open pit grades are significantly higher, reaching 750 g/t silver and 12 g/t gold and higher. Sampling has already shown the Sulema I vein to be at least 1,000 m long and is currently open in all directions. La Currita is located adjacent to Palmarejo (recently sold for US$1.1 billion) with some of the same vein systems continuing into La Currita. Given the consistency of the veins, the potential for significantly increasing the tonnage at La Currita is excellent.
Picacho, Sonora, Mexico
Gold and Silver Mine and Plant -- assessing partnership interest
Tara Gold owns 100% of the Picacho Gold and Silver Mine which includes rolling stock and an extensive processing facility currently capable of processing 250 tonnes per day. The previous owners mined an up to 5 m wide vein structure for 3 years by driving a 5 m by 5 m ramp declining 8% extending over 1 km in length. Production came from several working faces averaging 4-6 m in width. Phase I drilling in June 2007 yielded 11.28 m of 15.57 g/t gold and 32.41 g/t silver. The work confirmed and expanded upon historic data derived from 22 previous holes. It also identified the potential for parallel zones with a combined length of 8.5 kms. Picacho is located in close proximity to, and on trend, to the Mercedes project owned by Yamana Gold where extensive ongoing work is expected to result in significant 43-101 reserves. Tara is currently assessing partnership interest from various parties regarding Picacho.
Las Minitas, Sonora, Mexico
Gold and Silver Target
Tara Gold owns 100% of Las Minitas. A gold-silver system has been uncovered at the Las Minitas property in south western Sonora State, Mexico. The mineralization corridor is believed to cover a minimum 3 km strike length and is approximately 100 m wide. The El Negro target intersected 3.12 g/t gold and 43.80 g/t silver over 24.5 m, including a 1 m section grading 26.07 g/t gold, 273.50 g/t silver. Historical information indicates that 3 zones of interest are present. Tara Gold is assessing options to advance this project.
La Millonaria, Chihuahua, Mexico
Gold and Silver Target
Tara Gold owns 100% of La Millonaria, a 20-30 meter wide silicified and stockwork veined, east-west trending structure that can be traced on surface for a minimum distance of 600 m, with additional workings present up to 2 km along strike. Scattered prospects and adits are present along the structure and selective historical mining has reported recoveries of 10 g/t gold on average. Tara Gold is assessing options to advance this project.
Curcurpe, Northern Sonora State, Mexico
Tara Gold is currently reviewing all available data with regards to Curcurpe, located in the Curcurpe Mining District which hosts Carlin type gold deposits. The Curcurpe Project covers 2,250 hectares with multiple targets and historic mining over 1.5 km. There are high concentrations of gold-silver bearing vein deposits in the central and eastern parts of the Curcurpe District. Within Curcurpe, a vein structure has been traced for 3 km with grades between 1-8 g/t gold. Disseminated mineralization outside the main vein has shown grades of 1-2 g/t gold. Curcurpe is in close proximity to projects owned by Meridian and Penoles. Tara Gold is prioritizing its options regarding this property.
Pilar De Mocoribo, Sinaloa, Mexico (Tara Minerals Corp.)
Zinc/Lead/Silver Mine Property
Tara Gold owns 80% (30 million shares) of Tara Minerals (OTCBB: TARM) which controls 100% of Pilar De Mocoribo, a 1,260 hectares Zinc/Lead/Silver property. Preliminary evaluation identified a series of parallel NE trending mineralized structures that can be traced for more than 300 meters. The property lies 10 km SW of an advanced stage Cu-Ag-Au-Mo project. Three samples were collected on the initial property along the structures and returned 25.267% Pb and 15.334% Zn over an average strike length of 8 meters and a width of 1.5 meters. Silver values ranged from 44.81 g/t to 1,111.61 g/t. Additional mapping and sampling is planned before developing a comprehensive action plan to progress the property. Please visit http://taraminerals.com for additional information.
About Tara Gold Resources Corp.
The principal business of Tara Gold Resources Corp. is the acquisition, exploration and development of high-quality precious metals projects with potential for economic commercial value. Tara provides investors growth exposure with a diversified exploration portfolio, multiple multi-million ounce targets and several near term production scenarios. Tara Gold is currently focused on generating revenue from the Don Ramon and Lourdes project owned 100% by the subsidiary Tara Minerals Corp. Tara Gold is also positioned to benefit from production start-up at Lluvia de Oro and La Currita, the material exploration and production potential of Picacho, and from the future advancement of La Millonaria, Las Minitas and the Curcurpe projects in Mexico. For more information, please visit the Company's web site at: http://www.TaraGoldResources.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Contact: Website: www.TaraGoldResources.com Investors Relations: Warren Drew Phone: 406-844-0322 E-mail: [email protected]
SOURCE: Tara Gold Resources Corp.