Sargold Targets Longer Term Production Strategy at Furtei
Sargold Resource Corporation (TSX VENTURE: SRG)(FRANKFURT: DU4) (“Sargold” or the “Company”) is pleased to provide an update on the longer term production strategy at the Furtei mine in Sardinia. Based on metallurgical testwork, internal studies and results to date, the Company is pleased to report it is now targeting to produce approximately 15,000 – 20,000 ounces (“oz”) of gold (“Au”) within the next 12 months from the Sa Perrima zone, ramping up to between 60,000 – 70,000 oz Au equivalent in its second year with the addition of the Su Coru zone, before leveling off to approximately 50,000 oz Au equivalent per year for a minimum of five years (Please note the company has not completed a feasibility study and there is no certainty that the projected production rates will be achieved, nor that they will be economically viable).
As reported in March 2007, Sargold poured its first gold bar after refurbishing the Furtei mine plant to launch a near-term production plan based on processing the upgraded ore from the residual heap leach pad at the site. The Company has so far produced more than 1,000 ounces of gold and a comparable amount of silver after being in operation for two months. The remaining stockpile is expected to yield a similar level of production for the next few months.
Sa Perrima
After conducting a number of leach tests (with recoveries averaging over 70%), the Company will now commence a trial for leaching sulphide ore from the Sa Perrima open pit as the next step in the re-start of the Furtei facility. Production from the pyrite-hosted deposit will continue based on acceptable gold recoveries using direct cyanide leaching. Whilst cyanide consumption is high, recoveries comparable to flotation concentrate production and the potential to make dore bars on site indicate this may be far more favorable economically than the flotation option and smelting and refining concentrates.
Su Coru
Su Coru is the principle resource in a number of enargite-hosted deposits at Furtei. This enargite ore has historically proven to be problematic – it is refractory in nature and contains deleterious minerals to the smelting and refining process, which attract significant cost penalties. After investigating a number of processing options over the past year to solve this issue, the Company is pleased to report it has received promising test results from an atmospheric leach process, the Intec Copper and Gold Process, which has obtained metal recoveries of 90% or better utilizing a halide solution to oxidize the sulphides. This method does not require high temperatures and pressures, and can be carried out using typical chemical processing equipment. The continued success of this process will provide for the production of saleable gold and copper at Furtei, eliminating the refractory limitation of the enargite ore, and providing enhanced economics due to minimal transport, smelting and refining charges compared with traditional sulphide concentrate production.
Chairman & CEO Richard Warke said, “The Intec Copper and Gold Process has demonstrated that enargite ore can be recovered with potential economic viability. If successful, this will allow the Company to explore several target areas at Furtei and other properties on the island that have enargite hosted mineralization.”
Testwork will continue to optimize the leaching process, as well as determine individual orebody responses to the Intec process (Please note that a feasibility study has not been completed and there is no certainty that the Company’s proposed operations will be economically viable).
Private Placement
The Company reports it has arranged a non-brokered private placement of up to 9,000,000 units at C$0.20 per unit. Each unit is comprised of one common share and one common share purchase warrant. Each share purchase warrant entitles the holder to acquire one common share at a price of C$0.25 for a period of two years. This placement is in addition to the previously announced placement of 5,000,000 units under the same terms announced on April 30, 2007. Proceeds from both placements will be used to fund operating activities in addition to general working capital. The above is subject to regulatory approval.
Sargold also announces the granting of 750,000 stock options at $0.20 to an officer of the Company for a period of 5 years expiring May 14, 2012.
Please note the Company filed its first quarter financial statements on SEDAR today.
ABOUT SARGOLD RESOURCE CORPORATION. Sargold controls the largest precious metals exploration and exploitation land area in Sardinia, Italy. These assets include a 90% ownership interest in the fully permitted Furtei mine and processing plant, in addition to the large Monte Ollasteddu mineralized system in the Eastern Paleozoics. Furthermore, the Company holds the same interest in an advanced exploration property at Osilo, the site of several existing discoveries located in northwestern Sardinia. The island of Sardinia, located approximately 150 kilometers west of Rome, is the second largest in the Mediterranean Sea covering over 24,000 square kilometers.
ON BEHALF OF THE BOARD OF DIRECTORS,
Richard Warke, Chairman & CEO
FORWARD-LOOKING STATEMENTS – The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Company’s latest annual report and management discussion and analysis. The Company assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.
Contacts: Sargold Resource Corporation Marlo Hamer-Jackson Investor Relations Manager (604) 687-1717 (604) 687-1715 (FAX) Email: info@sargold.com Website: www.sargold.com
SOURCE: Sargold Resource Corporation