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Headline: MagIndustries Announces Updated Technical Report and Clarifies Previous Disclosure
The 2009 Technical Report updates a number of areas in the 2008 Technical Report including, but not limited to:
- A minor decrease in the total reserve and resource estimates as aresult of a change in the area available for the brinefield as a resultof the finalization of the land use and occupation survey.
- The 2009 Technical Report indicates proven and probable reserves of33.2 million tonnes of potash which can support a reserve life of morethan 54 years at a projected production rate of 600,000 tonnes peryear. The 2009 Technical Report estimates proven reserves of 151.2million tonnes of carnallitite, at a carnallite grade of 64.4% of oreand a KCl grade of 17.3% of ore, concluding with proven reserves of26.1 million tonnes of KCl. The 2009 Technical Report further estimatesprobable reserves of 40.3 million tonnes of carnallitite, at acarnallite grade of 65.7% of ore and a KCl grade of 17.6% of ore,concluding with probable reserves of 7.1 million tonnes of KCl.
- This compares to the 2008 Technical Report which indicated proven andprobable reserves of 33.5 million tonnes of potash which could supporta reserve life of more than 54 years at a projected production rate of600,000 tonnes per year. The 2008 Technical Report estimated provenreserves of 155.0 million tonnes of carnallitite, at a carnallite gradeof 64.2% of ore and a KCl grade of 17.2% of ore, concluding with provenreserves of 26.7 million tonnes of KCl. The 2008 Technical Reportfurther estimated probable reserves of 33.2 million tonnes ofcarnallitite, at a carnallite grade of 63.9% of ore and a KCl grade of17.2% of ore, concluding with probable reserves of 6.8 million tonnesof KCl.
- An increase in the estimated capital expenses of Phase 1 of theKouilou potash project from US$723 million to US$835 million due, inpart, to the inclusion of the 26 km gas pipeline between the Djeno gastreatment plant and the Kouilou project site, an increase in materialcosts (mainly an increase in the price of steel), and an increase inthe indirect costs.
- An increase in estimated operating expenses of Phase 1 of the Kouiloupotash project from US$83 per tonne of K60 to US$124 per tonne of K60resulting from, among other things, an increase in the cost of naturalgas, based on the finalization of a fixed-price (US$1.20/million BTU),13-year gas supply agreement.
- An increase in the assumption of the base potash price for 2012 ofUS$649 from US$464 net realized price per tonne of KCl (based oncurrent third-party potash price forecasts).
The overall recommendations of the authors of the 2009 Technical Reportremain unchanged and they conclude that, using the base case, theKouilou potash project's internal rate of return is estimated at 23%with the net present value estimated at US$914 million using a discountrate of 12%. Assuming total project costs of US$1.2 billion, pay backis achieved in approximately five years, assuming cumulative cash flowsfrom operations for the period 2012 to 2016.
Clarification
In connection with the review by the Ontario Securities Commission (the"OSC") of the Company's amended and restated preliminary prospectusfiled with the OSC and certain other provincial regulatory authoritieson June 2, 2009, the Company has been requested to issue a pressrelease in respect of certain of its previous disclosure relating tothe Kouilou potash project (the "Project").
Specifically, the OSC has noted that certain of the Company'spreviously filed continuous disclosure documents did not include thegrade information for each category of mineral resource and reserves inaccordance with Section 2.2(d) of NI 43-101. In particular, theinformation contained in news releases of the Company dated December29, 2008, March 26, 2009 and April 16, 2009, in the management'sdiscussion and analysis of financial results for the year endedDecember 31, 2008, in the annual information form for the year endedDecember 31, 2008 dated May 27, 2009 and on the Company's website,which disclosed potash resource and reserve estimates without alsostating the grade or quality and quantity for each category of themineral resource and mineral reserve and is expressly prohibited by NI43-101. Accordingly, such information should not be relied upon.
The Company hereby confirms that its current mineral resource andmineral reserve estimates at the Kouilou potash project are as set outin the following excerpt taken from the 2009 Technical Report filed onSEDAR at www.sedar.com on June 11, 2009.
The estimated resources of each category for Horizon 1, Horizon 2,Horizon 3 and Horizon 4 are presented in the table below. Alreadyexcluded from these resources are areas with geological and technicalexclusion zones (approx. 35 % reduction) and mining losses assuming theuse of a solution mining method have also been accounted for.
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Horizon 1 Horizon 2 Horizon 3 Horizon 4 Total
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Measured resources
Million tonnes of
carnallitite - 38.1 22.4 86.2 146.7
Carnallite grade of
ore (%) - 44.2 90.0 67.4 64.9
KCl grade of ore (%) - 11.8 24.1 18.1 17.4
Million tonnes of KCl - 4.5 5.4 15.6 25.5
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Indicated resources
Million tonnes of
carnallitite - 9.2 5.4 24.9 39.5
Carnallite grade of
ore (%) - 44.8 89.3 68.9 66.1
KCl grade of ore (%) - 12.0 23.9 18.5 17.7
Million tonnes of KCl - 1.1 1.3 4.6 7.0
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Inferred resources
Million tonnes of
carnallitite 427.6 191.9 113.7 482.5 1215.7
Carnallite grade of
ore (%) 63.6 44.1 90.0 66.3 64.1
KCl grade of ore (%) 17.1 11.8 24.1 17.8 17.2
Million tonnes of KCl 73.0 22.7 27.5 85.8 209.0
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The estimated reserves of each category for Horizon 2, Horizon 3 and
Horizon 4 are presented in the table below.
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Horizon 2 Horizon 3 Horizon 4 Total
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Proven reserves
Million tonnes of
carnallitite 39.3 22.4 89.5 151.2
Carnallite grade of
ore (%) 44.2 90.0 67.1 64.4
KCl grade of ore (%) 11.8 24.1 18.0 17.3
Million tonnes of KCl 4.6 5.4 16.1 26.1
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Probable reserves
Million tonnes of
carnallitite 9.2 5.4 25.7 40.3
Carnallite grade of
ore (%) 44.5 89.4 68.2 65.7
KCl grade of ore (%) 11.9 24.0 18.3 17.6
Million tonnes of KCl 1.1 1.3 4.7 7.1
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The authors of the Technical Report, Dr. Henry Rauche and Dr.Sebastiaan van der Klauw, are the qualified persons with respect to thetechnical reporting and have reviewed and approved the contents of thispress release.
About MagIndustries Corp.
MagIndustries Corp. is a Canadian company whose common shares arelisted on the TSX-V Exchange and trades in Canadian currency under thesymbol "MAA". The Company has approximately 288,079,962 sharesoutstanding on an undiluted basis. MagIndustries' resource subsidiariesare operating and developing major industrial projects in the Republicof Congo and the Democratic Republic of Congo.
Except for historical information, this press release containsforward-looking statements, which reflect the Company's currentexpectation regarding future events. These forward-looking statementsinvolve risks and uncertainties, which may cause actual results todiffer materially from those statements. Those risks and uncertaintiesinclude, but are not limited to, changing market conditions, and otherrisks detailed from time-to-time in the Company's ongoing filings. Weundertake no obligation to publicly update or revise anyforward-looking statements, whether as a result of new information,future events or otherwise. In light of these risks, uncertainties andassumptions, the forward-looking events in this press release might notoccur.
Cusip: 55917T 102
Neither TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.
This is Goin 2 get Good Folks !
VANCOUVER, BRITISH COLUMBIA, Jun 09, 2009 (MARKETWIRE via COMTEX News Network) --
Timmins Gold Corp. ("Timmins Gold") (TSX VENTURE: TMM) is pleased to announce that it has engaged WestLB AG, New York Branch ("WestLB"), as Lead Arranger and Sole Underwriter for USD$25 million of senior secured project finance facilities (the "Facilities") to fund the development of Timmins Gold's wholly-owned San Francisco gold project in Sonora, Mexico ("San Francisco" or the "Project"). The Facilities, comprised of a USD$22 million, 3 1/2 year, construction and term loan facility and a USD$3 million, 3 1/2 year, revolving credit facility
, are intended, when combined with the recent CDN$15 million private placement of equity, to provide the funding required to advance San Francisco into production.
Completion of the debt financing is subject to WestLB's internal credit approval, due diligence and documentation. CPM Group of New York, in its role as financial advisor to Timmins Gold, has managed the process of structuring, sourcing and evaluation of debt financing proposals for the Project.
"The proposed WestLB debt financing will complement the advanced stage of physical completion San Francisco has achieved to date and provides a critical component of the project's capital. The leverage provided by the Facilities offers a competitive cost of capital for project funding without requiring shareholder dilution. Timmins Gold is very pleased to be working with the WestLB team on this transaction. Completion of the debt financing will facilitate the advancement of San Francisco into production on schedule," said Bruce Bragagnolo, CEO of Timmins Gold.
"As well, Timmins Gold would like to express its appreciation to CPM Group for its work in advising the Company during the process thus far. Over the past months, CPM Group has added value to Timmins Gold in many ways with consummate professionalism and advice. We look forward to working with CPM Group through to a successful conclusion of the Facilities," added Arturo Bonillas, President of Timmins Gold.
At San Francisco, construction of the new state of the art crushing system has been completed with testing underway. The primary crusher was fully refurbished before installation and is now being tested. The new Sandvik secondary and tertiary crushers have been designed and calibrated for the rock type and capacity of the mine to maximize throughput and minimize down-time. The crushing circuit will have sufficient capacity to crush 3,500,000 tonnes of ore each year, which will support planned production of 80,000 ounces of gold each year. The crushing circuit has been designed for future expansion of capacity with minimal additional cost. The current mine life is five years and the 42,000 hectare land package comprising the Project displays excellent expansion and exploration potential.
The gold extraction plant has been refurbished and is currently being wet tested. The earthworks for the new heap leach pads are proceeding towards completion with liners being put down on the first 8 hectares. The San Francisco gold mine is located along the main Pan American Highway approximately 150 km north of Hermosillo, in the State of Sonora, Mexico. The San Francisco gold mine successfully produced gold from an open pit, heap leach operation in the late 1990's. The Project is described in a preliminary feasibility study prepared by Micon International Limited dated March 31, 2008 and revised on January 13, 2009. Please refer to Timmins Gold's website at www.timminsgold.com to view recent pictures of the progress of construction at the mine.
About Timmins Gold - Timmins Gold is a near term gold producer in Mexico. With construction at the San Francisco gold mine almost complete, Timmins Gold plans to pour gold in 2009. In addition to the San Francisco gold mine and its 42,000 hectare land package, Timmins Gold has over 30,000 hectares of prospective claims in the immediate area. Timmins Gold has assembled 4 other properties in Mexico including the Cocula project which Timmins Gold has identified as a potential open pit heap leach operation, the 45,000 hectare TIM claims in Zacatecas which are adjacent to Goldcorp's Penasquito deposit, and the Tequila gold project in Jalisco which returned an intercept of 5.88 g/t gold across 24.3 meters from Timmins Gold's 2008 diamond drill program.
Timmins Gold's goal is to utilize future cash flow to expand reserves at the San Francisco gold mine, advance its exploration projects and make strategic acquisitions.
About WestLB - WestLB AG is one of Germany's leading financial services providers and offers the full range of products and services of a universal bank, focusing on lending, corporate and structured finance, capital market and private equity products, and transaction services. WestLB's Metals and Mining team incorporates years of sector experience, with the institution global reach and local knowledge to deliver advisory, risk management and corporate and structured finance products in a timely, consistent and reliable manner. For more information, please visit www.westlb.com.
About CPM Group - CPM Group, based in New York, is a research and financial advisory firm focused on commodities with a particular expertise in precious metals. CPM Group's Investment Banking Division, led by Doug Sherrod, provides strategic financial advisory services to mining and energy companies, including work related to structuring overall financial plans for development stage companies and producers, advising on suitable sources of debt and equity financing, and assisting in arranging financing. CPM Group has enjoyed a presence in the precious metals markets for more than twenty years. Further information about CPM Group is available on their website www.cpmgroup.com. To contact CPM Group or Doug Sherrod, Managing Director, please call 1-212-785-8320 or via email at dsherrod@cpmgroup.com.
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 our 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Timmins Gold Corp. Bruce Bragagnolo, LLB. Chief Executive Officer (604) 638-8980 bruce@timminsgold.com www.timminsgold.com
SOURCE: Timmins Gold Corp.
mailto:bruce@timminsgold.com http://www.timminsgold.com
Copyright 2009 Marketwire, Inc., All rights reserved.
U.S. Silver produces 634,791 ounces silver in Q1 2009
2009-04-09 17:56 ET - News Release
Mr. Thomas Parker reports
U.S. SILVER REPORTS Q1 PRODUCTION, NI 43-101 TECHNICAL REPORT, OPTION GRANT
U.S. Silver Corp. confirms that during the first quarter of 2009 the Galena mine continued the improved production demonstrated in December, 2008. Silver production for the quarter was 634,791 ounces and exceeded 200,000 ounces in each of the first three months of 2009. Lead production was 1,057,600 pounds and copper production in the quarter was 301,120 pounds.
Thomas Parker, president and chief executive officer of U.S. Silver, stated: "We are very pleased with the effort our work force made during 2008 in exploring and developing new areas for production, allowing the company to report an increase in ore reserves and, at the same time, significantly increase silver production in first quarter, 2009. We have made significant improvements since taking over the Galena mine complex and are optimistic about the opportunities ahead."
The company is also pleased to announce the filing of its updated National Instrument 43-101 technical report entitled, "Galena mine, Shoshone County, Idaho, Technical Report, April 9, 2009," on SEDAR. The technical report follows U.S. Silver's Feb. 27, 2009, press release (see Stockwatch) announcing new estimates for reserves and resources at the Galena mine as at Dec. 31, 2008. The technical report was authored by Daniel H. Hussey, certified professional geologist and manager of exploration of U.S. Silver-Idaho Inc. (a wholly owned subsidiary of United States Silver Inc., U.S. Silver's wholly owned subsidiary), and can viewed under U.S. Silver's profile on SEDAR.
Technical report highlights
Proven and probable reserves at the Galena mine complex near Wallace, Idaho, increased to 20,976,700 ounces of silver contained in 1,148,800 tons of ore at an average grade of 18.26 ounces of silver per ton. This represents a 20-per-cent increase in ounces of silver and a 17-per-cent increase in tons from the previous technical report on the Galena mine dated June 1, 2008.
TECHNICAL REPORT HIGHLIGHTS
(as disclosed Feb. 27, 2009)Tons Ag grade Contained Cu Contained
Copper-silver ore (oz/t) ounces (%) Cu (tons)Proven and probable reserves 722,500 23.41 16,912,100 0.70% 5,050
Measured and indicated resources 458,700 18.32 8,403,200 0.61% 2,810
Inferred resource 557,900 19.49 10,874,200 0.58% 3,260
Tons Ag grade Contained Pb Contained
Lead-silver ore (oz/t) ounces (%) Pb (tons)Proven and probable reserves 426,300 9.53 4,064,600 10.16% 43,320
Measured and indicated resource 75,000 10.69 801,500 10.87% 8,150
Inferred resource 689,100 8.94 6,158,600 9.45% 65,140
The significant increase in reserves is the result of aggressive exploration and development undertaken by U.S. Silver since gaining ownership and operation of the Galena mine in June, 2006. U.S. Silver intends to continue exploration and development at the property in order to systematically replace mined reserves and resources.
Reserve and resource grades are based on mine chip and diamond drilling samples. All samples are obtained and assays are reported under a formal quality assurance program. Information of a technical nature in this press release respecting the properties has been prepared and reviewed by Mr. Hussey, manager of exploration of U.S. Silver, who supervised the drilling and sampling programs, and resource estimation. Mr. Hussey is a qualified person within the meaning of National Instrument 43-101 of the Canadian securities administrators.
Investor communications option grant
U.S. Silver is also pleased to announce the expanded engagement of MacDougall Consultants Ltd., of London, Ont., to manage investor communications. MacDougall has over 30 years of experience in mining company finance and communications. At the present time, neither MacDougall nor any individuals affiliated with MacDougall beneficially own, control or direct more than 2 per cent of the shares of U.S. Silver. However, depending on market conditions, individuals affiliated with MacDougall may in the future acquire, dispose of and/or beneficially own, control, or direct shares of U.S. Silver. MacDougall's services include, among other things, initiating contacts and facilitating meetings with institutional investors, independent money managers and market-makers. U.S. Silver will retain MacDougall for a period of five years with a provision for suspension after three months or on one month's notice thereafter.
MacDougall will receive, pursuant to the share option plan, options to purchase up to 400,000 common shares of U.S. Silver. The options are priced at 14 cents per share and expire five years from the date of issue, or 30 days from the termination of the agreement between U.S. Silver and MacDougall. Such options are subject to the terms and conditions of the plan, certain vesting provisions, and exchange policies.
We seek Safe Harbor.
Timmins Gold 6.25-million-share private placement
2009-03-16 20:25 ET - Private Placement
The TSX Venture Exchange has accepted for expedited filing documentation with respect to the first tranche of a non-brokered private placement announced March 2, 2009.
Number of shares: 6.25 million shares
Purchase price: 40 cents per share
Warrants: 3,125,000 share purchase warrants to purchase 3,125,000 shares
Warrant exercise price: 60 cents for a one-year period
Number of placees: one
Pro group: Sprott Asset Management Inc. (portfolio managed) 6.25 million
Finder's fee: $200,000 payable to Long Wave Strategies Inc. (Janice Advent)
There is a radio interview dates yesterday Monday mar.09/2009 .
talking about additional financing etc . on the follwoing link for anyone who cares to see it ,,,,
elmacanuck