• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Pearl Asian Mining Has Processed at Least 2 Metric Tons of Gold Ore, Producing Up to 2 Kg of Gold Concentrate; Negotiations for Long-Term Gold Supply Contracts to Prospective Gold Bullion Buyer(S) Under Way

Posted on: Thursday, 28 September 2006, 12:01 CDT

Pearl Asian Mining Industries, Inc. (OTC: PAIM) reports: it has processed at least 2 Metric Tons of Gold Ore during the start-up of the Hammer Crusher/Gold Concentrating Equipment being run at substantially less than maximum capacity, as is industry practice during start-up operations, to have an initial indication of operating parameters and conditions. The gold concentrate, estimated to have a gold content of up to 1% by weight, pending results of fire assay to be conducted by external laboratories, is supposed to be tranferred to the gold refining unit in Cagayan de Oro City, pending the arrival within two weeks of the recently acquired REO 6x6 Truck from Manila to securely transport the gold concentrate. Before proceeding with the transfer, Pearl Asian is also coordinating with local security experts - former high-ranking military officers, to provide security detail and recommend ideal security arrangements in transporting the gold.

While the gold-processing operation is on-going, perimeter security at the gold plant has recently been strengthened. A perimeter fence made of heavy gauge cyclone wire is almost completed, currently being topped with barbed wire, and with provisions for connection to an electric power source. Along with a security detail composed of paramilitary men from the Higaonon Tribe guarding the 20-hectare small-scale mining claim, a private security firm has been engaged to secure the area within the High-Security Zones: the gold plant, offices/radio room, and living quarters. A surveillance camera shall also be installed at strategic areas within the year.

Mining and exploration activities continue unabated, to supply a buffer stock of gold ore for processing, with current stockpiles estimated at up to 570 metric tons of high-grade ore, and with new veins being discovered regularly. In the succeeding weeks, the gold plant will be run at increasing production rates until the maximum processing capacity of 18 metric tons gold ore per day will be test run.

In a related development, Pearl Asian is currently negotiating with international trading houses for long-term gold supply contracts, hoping to clinch total contracts of at least 10 metric tons of gold bullion over a period of up to 10 years. The first contract is expected to be closed within the year.

Engineer Elvis Hidalgo, EVP-Chief Metallurgist, stated, "...the gold processing equipment we purchased from China is performing better than we expected so far. With such a compact unit, and without using a ball mill, the particle sizes attained are ideal for processing in our gold refinery. The delivery of heavy equipment for the mining operations very soon will result in greater supply of gold ore, and it is envisioned that more gold processing units will be installed within the next few months to process the bigger stockpiles produced by the mining group."

FORWARD-LOOKING STATEMENTS:

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding the Company's projections regarding gold production in future periods. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of reserves, mineral deposits and production costs; mining and development risks; the risk of commodity price fluctuations; political and regulatory risks; risks of obtaining required operating permits and other risks and uncertainties. Penny Stocks are very highly speculative and may be unsuitable for all but very aggressive investors. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Source: Business Wire

More News in this Category