|
Timmins Gold (TSX-V:TMM - News) is pleased to announce
an increase in the Mineral Reserve and Mineral Resource estimate for its
wholly owned San Francisco open pit gold mine located in northern Sonora,
Mexico. Proven and Probable Reserves were increased from 611,000 ounces to
780,000 ounces, an increase of 28%. The increased reserve and resource
estimate follows upon the commencement of commercial production in April,
2010.
The Mineral Reserve completed by the
independent qualified person, Mr. Mani Verma, M.Eng., P.Eng., of Micon
International Ltd, (Micon), of Toronto, Ontario, was prepared using CIM
definitions for Mineral Reserves as required by National Instrument 43-101.
An updated technical report will be filed on SEDAR shortly. The Mineral
Reserve is found in Table 1 below.
Table 1 - Mineral Reserve within the San
Francisco Pit with Topography at August 31, 2010.
------------------------------------------------------------------------
Metric Tonnes Contained
Ore Type (1,000) Gold g/t Gold Ounces
------------------------------------------------------------------------
Proven 17,194 0.756 418,000
------------------------------------------------------------------------
Probable 17,738 0.635 362,000
------------------------------------------------------------------------
Total 34,932 0.695 780,000
------------------------------------------------------------------------
The Mineral Reserves are based on a gold
price of US$900 per ounce. The reserve includes a dilution factor of 12%
according to the type of mineralization and size of the blocks modeled. An
internal cutoff grade of 0.16 g/t gold was used. Weighted average gold
recovery is estimated at 70%.
Measured and Indicated Resources for the
San Francisco mine have increased to 984,000 ounces of gold and the Inferred
Resource has increased to 208,000 ounces of gold. This represents an increase
of 10% to the combined Measured and Indicated resource estimate published in
April, 2010. The updated resource estimate is found in table 2 below:
Table 2 - Mineral Resource Estimate with
Drill Data as of the end of May, 2010 (Inclusive of Mineral Reserve).
------------------------------------------------------------------------
Metric Tonnes Contained
Resource Category (1000) Gold g/t Gold Ounces
------------------------------------------------------------------------
Measured 19,089 0.797 489,000
------------------------------------------------------------------------
Indicated 23,442 0.658 495,000
------------------------------------------------------------------------
Total Measured and
Indicated 42,531 0.720 984,000
------------------------------------------------------------------------
Inferred 10,308 0.628 208,000
------------------------------------------------------------------------
Mineral Resources that are not Mineral
Reserves do not have demonstrated economic viability. The Mineral Resource
Estimate was completed by Mr. William Lewis, B.Sc., P.Geo. and Ing. Alan San
Martin, MAusIMM of Micon, and was prepared using CIM definitions for Mineral
Resources as required by National Instrument 43-101. The mineral resource
estimate was based on a gold price of US$1,100 per ounce and a 0.131 g/t gold
cutoff grade.
The increase was obtained from a limited
step-out drill program of 534 holes of core and reverse circulation drilling
totaling 51,174 meters completed between January and May of 2010.
The drilling was concentrated in three
areas: 1) northwest of the main orebody, 2) southeast of the orebody, and 3)
along the southwest flank of the current pit. The Proven and Probable Reserve
increases are located contiguous to the northwest, the southeast and the
southwest of the currently defined pit limits.
The increased reserve and resource follows
upon the commencement of commercial production in early April, 2010. The size
of the gold mineralization zone, its presence within large shear zones and
the continuous nature of the gold within the zones form the basis of
management's expectation that planned additional drilling could lead to a
significant increase in the resource available to be mined at San Francisco
and could potentially also lead to the discovery of additional satellite
deposits within the existing land package.
The previous Proven and Probable
Reserves were 611,000 ounces gold (22.6 Mt grading 0.84 g/t Au), as reported
in the March, 2008 Preliminary Feasibility Study prepared by Micon.
This press release was reviewed and
prepared by Lawrence A. Dick, Ph.D., P.Geo, a director of the Company, who is
recognized as a Qualified Person under the guidelines of National Instrument
43-101 and by Miguel Soto, P. Geo., a director and the COO of the Company.
Pursuant to National Instrument 43-101, Mr. William Lewis, B.Sc., P.Geo. and
Mr. Mani Verma, M.Eng., P.Eng., both of Micon International Ltd, (Micon), of
Toronto, Ontario are the independent Qualified Persons responsible for the
Mineral Reserve and Mineral Resource Estimate. Each of Mr. Lewis, Mr. Verma,
Mr. Dick and Mr. Soto have read and approved the contents of this news
release.
About Timmins Gold
Focused solely in Mexico, Timmins Gold
Corp is in commercial gold production at its wholly owned San Francisco gold
mine in Sonora, Mexico. The mine is a past-producing open pit heap leach
operation. Timmins Gold has forecast production at a rate in excess of 80,000
ounces of gold per year at a life of mine cash cost of approximately $410 per
ounce (Micon International Preliminary Feasibility Study, March 2008).
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.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
|
|