VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 26, 2011) - UC Resources Ltd. (News - Market indicators) (UC or Company) is pleased to update activities from its La Yesca mill operations in Nayarit State, Mexico.
For the first 24 days of April, the mill at La Yesca has provided precipitate in both quality and quantity that once smelted to gold and silver dore have provided a positive cash flow position for the entire Mexican operation for the first time in UC Resources Ltd. history. The month of March saw progressive improvement in operations as testing continued with further mill changes being made that resulted in cash flow improving on a weekly basis.
Neither optimal projected tonnes of throughput nor optimal recovery have been obtained as of the April 16, 2011. However, cash from operations during this period are greater than the entire Mexican operational costs. Over the course of the next quarter we expect to significantly increase both tonnes processed per day as well as increasing recovery rates which should result in significant increase cash flows with the objective of declaring of commercial production.
The mill has tested as high as 250 tpd but is presently running at approximately half that rate as the company continues to evaluate the latest production success. As stated above, the company will be ramping up the throughput rate in a progressive manner to optimize the milling operations and continuing to focus on recovery rates which still have significant room for improvement. The company will make every effort to keep shareholders apprised of developments and remains focused on a successful announcement of commercial production.
UC Resources is an active explorer of base metals and chromite in the McFaulds Lake area ("Ring of Fire") of the James Bay Lowlands, Ontario, as well as an explorer and producer of precious metals in Mexico.
On behalf of the Board of Directors,
Jim Voisin, President & CEO
UC Resources Ltd.
We seek safe harbour.
Investors are invited to visit the UC Resources IR Hub at http://www.agoracom.com/ir/UCResources where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to UC@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the La Yesca property and other future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
