Farallon Initiates Off-Take Agreement With Trafigura
VANCOUVER, Oct. 28 /PRNewswire-FirstCall/ — Farallon Resources Ltd. (“Farallon” or the “Company”) (TSX: FAN; OTCBB: FRLLF) announces that it has initiated the off-take agreement with Trafigura Beheer BV Amsterdam (“Trafigura”) for zinc concentrate produced from the Company’s G-9 mine at the Campo Morado polymetallic (zinc, copper, lead, silver, gold) property in Guerrero State, Mexico.
G-9 concentrates are being trucked in bulk from the site to the port at Manzanillo, a full service facility utilized by a number of mines in central Mexico. Farallon trucked its first concentrate on October 12, 2008, and since that time some 2,000 tonnes have been transported to the storage facilities at the port. Concentrate shipments will increase to 2,600 tonnes per week once full mine production is achieved.
The contract with Trafigura provides for the receipt of advance payments for concentrates stored at the port. Farallon has chosen to initiate the contract to take advantage of this provision. Payments are to be made in USÃƒÆ’Ã‚Æ’Ãƒ“šÃ‚“šÃƒÆ’Ã‚“šÃƒ“š dollars. An advance payment for 500 tonnes of zinc concentrate, a total of US$133,000, has been received.
President and CEO Dick Whittington said “It is my pleasure to announce receipt of the first payment from production at the G-9 mine. The initiation of our off-take agreements with Trafigura and commencement of revenue generation for the G-9 mine is another major milestone for the Company, achieved through the focused efforts of the project team over the past two years.”
Farallon has advanced the G-9 Project through a ‘Parallel Track’ program. Drilling expanded and confirmed the high-grade mineralization within the G-9ÃƒÆ’Ã‚Æ’Ãƒ“šÃ‚“šÃƒÆ’Ã‚“šÃƒ“š deposit in parallel with project construction and development activities. Underground drilling, stope access and development, and mining using an open stope method is currently taking place in the North and West Extension zones of the G-9 deposit. The mill is mechanically and electrically complete, and commissioning has been underway over the past two months. The rated mill capacity of 1,500 tonnes per day has been achieved, producing zinc concentrate over a sustained period. Completion of access to the high-grade Southeast zone and initial stope development in this zone is expected in December, with full production targeted for January 2009.
ON BEHALF OF THE BOARD OF DIRECTORS J.R.H. (Dick) Whittington President & CEO No regulatory authority has approved or disapproved the information contained in this news release. Forward-Looking Information
This release includes certain statements that may be deemed “forward-looking statements.” All statements in this release, other than statements of historical facts, that address future production, reserve potential, continuity of mineralization, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. The likelihood of future mining at Campo Morado is subject to a large number of risks and may require achievement of a number of technical, economic and legal objectives, including obtaining lower than expected grades and quantities of mineralization and resources, recovery rates and mining rates, changes in and the effect of government policies with respect to mineral exploration and exploitation, the possibility of adverse developments in the financial markets generally, delays in exploration, development and construction projects, fluctuations in the prices of zinc, gold, silver, copper, lead and other commodities, obtaining additional mining and construction permits, completion of pre-feasibility and final feasibility studies, preparation of all necessary engineering for underground and processing facilities as well as receipt of any additional financing that may be required to fund mine construction. Such funding may not be available to the Company on acceptable terms or on any terms at all. There is no known ore at Campo Morado and there is no assurance that the mineralization at Campo Morado will ever be classified as ore. For more information on the Company and the risk factors inherent in its business, investors should review the Company’s Annual Information Form at http://www.sedar.com/ and the Company’s annual report on Form 20-F at http://www.sec.gov/.
Farallon Resources Ltd.
CONTACT: on Farallon Resources Ltd., please visit the Company’s websiteat http://www.farallonresources.com/ or contact Investor Services at (604) 684-6365 orwithin North America at 1-800-667-2114