Glencairn Achieves Commercial Production at Santa Pancha
TORONTO, ONTARIO -- April 26, 2007 - Glencairn Gold Corporation (TSX: GGG) (TSX: GGG.WT) (AMEX: GLE) announced today that its Santa Pancha Deposit at the Limon Mine in Nicaragua achieved commercial production in late March, 2007. The deposit was first discovered in 2002 and development began in 2005.
The Santa Pancha Deposit is a fully mechanized underground mine. Access is by ramp, and sublevel long hole mining is used to extract the ore. The initial mining rate is approximately 210,000 tonnes per year, with planned expansions in subsequent years.
"We are very pleased with the excellent work that the mining team at Limon has done in bringing Santa Pancha into commercial production. We are continuing our exploration in the area and hope to expand and improve the mineral resources and mineral reserves at Santa Pancha," said Glencairn President and CEO Peter Tagliamonte.
The Limon Mine has been in continuous production since 1941, with over 3 million ounces of gold having been mined during this period. In 2006, the mine's third full year of operation under Glencairn ownership, the operation generated revenue of $20.0 million and earnings from mining operations of $1.9 million.
By year-end 2006, proven mineral reserves at Limon were 83,400 tonnes grading 5.71 grams gold per tonne and probable mineral reserves were 1,094,600 tonnes grading 5.23 grams gold per tonne (g/t). In total, Limon mineral reserves contain approximately 199,300 contained ounces of gold. Of this total, the Santa Pancha Deposit accounts for approximately 131,000 contained ounces.
The proven and probable mineral reserves reported herein are based on the CIM Council Standards on Mineral Resources and Reserves Definitions and Guidelines adopted by the CIM Council on August 20, 2000 ("CIM Standards") and were prepared under the supervision of Michael Gareau, P.Geo., Vice President Exploration, and Graham Speirs, P.Eng., Chief Operating Officer. Both are employees of the Company and Qualified Persons under National Instrument 43-101. Messrs. Gareau and Speirs have read and approved the technical disclosure in this release.
About Glencairn Gold Corporation
Glencairn is a growing gold producer with mining and exploration activities focused in Central America. The Company operates the Bellavista Mine in Costa Rica and the Limon Mine in Nicaragua and plans to convert a third mine, the Libertad Mine in Nicaragua, to conventional milling and expand the operation. It holds a 60% interest in the Cerro Quema advanced gold project in Panama and a 100% interest in the Mestiza gold property 70 kilometres from the Limon Mine. The Company focuses on efficient and productive mining practices to establish a firm base of quality operations. Glencairn is committed to growth by optimizing current operations and expanding mineral reserves at existing mines.
Cautionary Note Regarding Forward-Looking Statements: This press release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of gold, estimated mining rate at Santa Pacha, estimated recoveries under the milling plan, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital for the mill project, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of m
ining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, insurrection or war; delays in obtaining governmental approvals or required financing or in the completion of development or cons
truction activities, as well as those factors discussed in the section entitled "General Development of the Business - Risks of the Business" in the Company's annual information form for the year ended December 31, 2006 on file with the securities regulatory authorities in Canada and the Company's Form 40-F on file with the Securities and Exchange Commission in Washington, D.C. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are i
ncorporated by reference herein, except in accordance with applicable securities laws.
CONTACT INFORMATION
Glencairn Gold Corporation
Peter Tagliamonte
President/CEO
(416) 860-0919
Email: pwt@glencairngold.com
Glencairn Gold Corporation
Olav Svela, Vice President
Investor Relations
(416) 860-0919
Email: osvela@glencairngold.com
Glencairn Gold Corporation
Kerry Knoll
Chairman
(416) 860-0919
Fax: (416) 367-0182
Email: kknoll@glencairngold.com
RENMARK FINANCIAL COMMUNICATIONS INC.
CHRISTINA LALLI : CLALLI@RENMARKFINANCIAL.COM
NEIL MURRAY-LYON : NMURRAYLYON@RENMARKFINANCIAL.COM
TEL. : (514) 939-3989
FAX : (514) 939-3717
WWW.RENMARKFINANCIAL.COM
