Rio Alto Mining Limited

Published : August 05th, 2009

La Arena Surface Rights and Project ...

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August 5, 2009

La Arena Surface Rights and Project Update


 

 

Rio Alto Mining Ltd. ("Rio Alto") (TSXV: RIO; Frankfurt WKN: A0MSLE), formally Mexican SIlver Mines, is pleased to announce that La Arena S.A. has acquired 100% of the surface rights over the gold oxide resource at the La Arena Project, located in Peru, and to provide an update of recent activities.

In accordance with terms of the Option and Earn-In Right Purchase Agreement entered into between Rio Alto Mining Limited and IAMGOLD, on June 15, 2009, Rio Alto's wholly-owned subsidiary Rio Alto Mining S.A.C. has been appointed manger of La Arena S.A. and its La Arena Project.  Since the appointment Rio Alto has made the following progress.


Senior Management Team Appointments
A group of experienced Peruvian mining professionals have been appointed to the management team of Rio Alto S.A.C. including: Jaime Soldi, General Manager; Max Schwarz, Project Manager; Juan Rodriguez, Operations Manager; Zinha Urrunaga, Financial Controller and Alejandro Portal, Site Administrator.

Peru's mining tradition and history spans several hundred years. It is the world's fifth largest producer of gold, third largest producer of copper, a major producer of zinc and lead and the number one producer of silver.  Rio Alto is proud to have been able to attract the calibre of people that make up its senior management team in Peru.  They allow the Company to implement its strategy for development, construction and operation of the La Arena Gold Oxide Project utilizing Peruvian personnel, service providers and contractors.


Acquisition of Surface Rights
La Arena S.A. completed the acquisition of 100% of the surface rights over the current oxide resource at the La Arena Project. To date, La Arena S.A. has acquired 72% (528 hectares) of the 732 hectares of surface rights required to build the La Arena Gold Oxide Project. Additional land will be acquired under an ongoing surface rights acquisition program.

Oxide Project Development Activities

There is a two-phase development plan for the La Arena Project: Phase 1 - Gold Oxide Project; Phase 2 - Copper / Gold Sulphide Project. The focus of Rio Alto's development activities during the next 18 to 20 months is to bring the La Arena Gold Oxide Project into production.

To minimize capital expenditures, production will begin at a nominal rate of 5,000 tonnes of ore per day and cash flow will be used to ramp up to 24,000 tonnes of ore per day within the first two years after start-up. Rio Alto and its consultants estimate that start-up capital required would be in the range of US$ 20M to US$ 23M. Development work during the coming months will confirm start-up capital for the project.

Rio Alto has engaged the services of the following engineering companies to complete all the necessary development work to bring the La Arena Gold Oxide Project into production as soon as practicable.

Coffey Mining Pty Ltd - Reserve Estimate and Quality Control and Quality Assurance
Vector Peru S.A.C. - Feasibility Study and Detailed Engineering of Site Infrastructure
Tecnologia XXI S.A. - Environmental Impact Assessment
Heap Leaching Consulting S.A.C. - Metallurgical Testing and Detailed Plant Design

Coffey Mining
Coffey Mining is preparing an updated reserve estimate for the La Arena Gold Oxide Project and recently spent two weeks in Peru meeting with service providers, suppliers and mining contractors to gather current cost information for input into the reserve estimate. As part of this work, Coffey Mining invited six Peruvian mining contractors to submit detailed quotations for the provision of drill and blast, excavate, load and haul contracting services for the estimated six-seven year life of the oxide project. The reserve estimate being prepared is expected to be completed in September with a NI43-101 technical report to be filed shortly thereafter.

Vector Peru

Vector Peru has completed a review and optimized the site layout for the oxide project. The focus of the optimization process was to minimize haul distances to the project's leach pad and waste dumps and to locate facilities such as the processing plant, site offices and other infrastructure in the most practical locations. Now that a new site layout has been determined, a geotechnical and condemnation drilling program will commence to confirm selected locations.

Tecnologia XXI
Tecnologia XXI is incorporating the new site layout into an Environmental Impact Assessment (EIA) and upon completion, Rio Alto will file the EIA with Government authorities. The first of a number of planned community consultation workshops was held two weeks ago at La Arena.  Rio Alto is pleased that this workshop was well attended with more than 140 people from the immediate and surrounding communities participating. A dedicated community participation office is being established at the La Arena camp to provide the local population with an open line of communication with Rio Alto management and provide registration services for work opportunities at the project.

Heap Leaching Consulting (HLC)
HLC has prepared a metallurgical sampling program from the oxide pit to complete column leach tests for the definitive gold oxide leach plant design at La Arena. Sampling will begin in the first week of August and leach test work will commence shortly thereafter.
 
Rio Alto Mining Limited (TSXV:RIO, WKN: A0MSLE) is focused on developing the La Arena Gold Oxide Project in Peru within the next 20 months and exploring for  silver on three former silver producing properties in north eastern Mexico. The Company's principal objective is to become the next company in Peru to bring a gold project into production and to use cash flow from production to further develop its assets in Peru and Mexico. To learn more about Rio Alto Mining Limited, please visit: www.mexicansilvermines.com.  Financial information and other information can also be found at www.sedar.com

ON BEHALF OF THE BOARD OF
Rio Alto Mining Ltd.

___________________________________
Feisal Somji, B.Sc., MBA
President and Chief Executive Officer


FOR FURTHER INFORMATION, CONTACT:

Mexican Silver Mines Ltd.

Feisal Somji, President & CEO  

Phone: 403.236.5089

Fax: 403.398.0693  

Email:  fsomji@mexicansilvermines.com

Web:    www.mexicansilvermines.com

 

Investor Relations

Jamie Mathers

Phone: 604.684.4743 ext. 236

Toll Free: 1.866.684.4743 ext. 236

Email: jamie@ascentacapital.com

 

Alejandra Gomez

Phone: 604.762.8918

Fax: 604.943.5364

Email: alejandrag@rioaltomining.com

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts the responsibility for the adequacy or accuracy of this release.

 


 

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Rio Alto Mining Limited

DEVELOPMENT STAGE
CODE : RIO.TO
ISIN : CA76689T1049
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Rio Alto is a copper and gold development stage company based in Canada.

Rio Alto develops copper, gold and silver in Peru, and holds various exploration projects in Mexico.

Its main asset in development is LA ARENA in Peru and its main exploration properties are ANILLO DE FUEGO, PROVIDENCIA, RAL ( LA IGUANA ), VALLECILLO, MAMULIQUE and LA BLANCA in Mexico.

Rio Alto is listed in Canada. Its market capitalisation is CA$ 793.2 millions as of today (US$ 798.5 millions, € 597.1 millions).

Its stock quote reached its lowest recent point on December 26, 2008 at CA$ 0.07, and its highest recent level on February 23, 2012 at CA$ 4.54.

Rio Alto has 175 886 000 shares outstanding.

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In the News and Medias of Rio Alto Mining Limited
1/31/2008Follow up N° 2
Annual reports of Rio Alto Mining Limited
2007 annual report
2007 Q1 report
2006 Q3 report
2006 annual report
Financings of Rio Alto Mining Limited
11/30/2010Completes First Tranche of Private Placement for C$12.8 Mill...
1/7/2009Extends Expiry Date of Outstanding Warrants
12/23/2008Proposes to Extend Expiry Date of Outstanding Warrants
Option Grants of Rio Alto Mining Limited
7/23/2009Name Change to Rio Alto Mining Limited and Grant of Stock Op...
5/25/2009Announces Grant of Stock Options
Nominations of Rio Alto Mining Limited
3/14/2011Announces Appointment of Victor Gobitz and Sidney Robinson t...
2/18/2011Announces the Departure of Feisal Somji
6/17/2008Appoints Jose Sayo Garcia as VP Exploration and Brings Addit...
Project news of Rio Alto Mining Limited
4/29/2011(La Arena)Drills 173 Metres of 1.53 Grams of Gold Per Tonne
2/9/2011(La Arena)Announces Acquisition of 100% of La Arena Project
8/5/2009(La Arena)La Arena Surface Rights and Project Update
6/29/2009(La Arena)Confirms Option Agreement on La Arena and Equity Position in...
7/7/2008(Mamulique)Commences First Phase Drilling at the Mamulique Project
6/4/2008(Ral ( La Iguana ))Reports Extension of Mantos in the First Phase of Drilling a...
5/12/2008(La Blanca)Discovers New High Grade Veins
3/25/2008(Vallecillo)Initiates IP Geophysics at Vallecillo
2/19/2008(Mamulique) Announces Positive Exploration Results and Drill Plan for t...
1/30/2008(Ral ( La Iguana ))Announces an Exploration Update on its Iguana Project
1/23/2008(Vallecillo)Reports further drill results from the Vallecillo drill prog...
Corporate news of Rio Alto Mining Limited
4/1/2015Tahoe Resources and Rio Alto Mining Announce Completion of M...
3/30/2015Announces Shareholder and Court Approval of the Plan of Arra...
3/16/2015Announces Net Income of US$49.8 Million for 2014
7/20/2011Drills 238 Metres of 1.06 Grams of Gold Per Tonne
6/15/2011Drills 134 Metres of 2.29 Grams of Gold Per Tonne
5/9/2011(La Arena)Pours 1,115 Oz of Gold at La Arena
6/30/2009Completes Acquisition of Rio Alto Mining Limited
6/22/2009Enters Definitive Agreement to Acquire Rio Alto Mining Limit...
3/10/2009Enters into Letter of Intent to Acquire Rio Alto Mining Limi...
2/25/2009at 2009 Prospectors & Developers Association of Canada Confe...
12/19/2008Featured on Business Television
11/19/2008Provides a Corporate Update and Initiates Review of Strategi...
4/23/2008 Grants and Re-Prices Options
4/8/2008 Announces the Addition of Jim Glass to Board of Directors
2/29/20082007 Q3 Report
1/28/2008Announces Exploration Results from the Magnolia Mine Area wi...
12/5/2007 Announces Positive Drill Assay Results From Vallecillo and ...
11/30/20072007 Q2 report
11/19/2007 Acquires the Voladora Mine in the State of Nuevo Leon
10/31/2007Increases Drill Program at Vallecillo
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