G-9 Operating at over 1,900 tpd in March
New Daily Throughput Record of over 2,400 tpd Achieved
VANCOUVER, March 31 /PRNewswire-FirstCall/ - Dick Whittington, President and CEO of Farallon Mining Ltd. ("Farallon" or the "Company") (TSX:FAN) is pleased to announce that the G-9 operations have continued to increase throughput rates during the first quarter of 2010 and are now operating consistently at over 1,900 tonnes per day ("tpd"). Metallurgical recovery has continued to improve over the same period with zinc recovery of 84% and copper recovery of 68% in the month of March to-date(1).
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Zinc Copper
Conc Conc
Period Throughput % of Design Zinc Copper Grade Grade
(tpd) (1,500 tpd) Recovery Recovery % Zn % Cu
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Q1 2009 1,190 79% 79% 45% 52% 18%
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Q2 2009 1,260 84% 77% 55% 52% 14%
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Q3 2009 1,275 85% 79% 46% 49% 17%
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Q4 2009 1,552 103% 80% 56% 49% 15%
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Q1 2010(1) 1,672 111% 82% 60% 49% 14%
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Including Mar/10 1,910 127% 84% 68% 49% 13%
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(1) First quarter 2010 includes daily operations data for the month of
March up to and including March 29, 2010. Results are subject to
adjustment upon completion of the final metallurgical balance which
will be announced in conjunction with the financial results for the
first quarter.
Additionally on March 25th, the mill throughput achieved was 2,527 wet metric tonnes (2,402 dry metric tonnes), 68% over the design capacity of 1,500 tonnes per day and a new single-day record for the Company. Based on these results, the Company is re-evaluating the scope of the mill expansion project previously announced on November 16, 2010. The $5.3 million that has been committed to the project may be re-deployed to achieve greater capacity than the 2,000 tpd originally contemplated.
Farallon's President and CEO, Dick Whittington, stated "It is extremely gratifying to see the G-9 operations running well above nameplate capacity only one year after announcing commercial production. It is also encouraging that metallurgical recovery is continuing to improve, despite the high throughput rates. Achieving operational excellence is a key component of our ongoing growth strategy and it appears we are well on the way to doing so".
Farallon's G-9 zinc, copper, silver, gold and lead mine at the Campo Morado Property in Mexico reached commercial production in April 2009. The Company is targeting to produce at an annualized production rate of 120 million pounds of zinc and 15 million pounds of copper per year. For further details on Farallon Mining Ltd., please visit the Company's website at www.farallonmining.com or contact Neil MacRae, Investor Relations Manager, at (604) 638-2160 or within North America at 1-877-688-2050.
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington
President & CEO
No regulatory authority has approved or disapproved the information contained in this news release
Forward Looking Information
This release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve or resource potential, continuity of mineralization, exploration drilling, operational activities, production rates, costs to completion and events or developments that the Company expects, or is targeting, are forward-looking statements. Although the Company believes that the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements and may require achievement of a number of operational, technical, economic, financial and legal objectives. The likelihood of continued future mining at Campo Morado is subject to a large number of risks, including obtaining lower than expected grades and quantities of mineralization and resources, lower than expected mill recovery rates and mining rates, changes in and the effect of government policies with respect to mineral exploration and exploitation, the possibility of local disputes including blockades of the company's property, the possibility of adverse developments in the financial markets generally, fluctuations in the prices of zinc, gold, silver, copper and lead, obtaining additional mining and construction permits, preparation of all necessary engineering for ongoing underground and processing facilities as well as receipt of additional financing to fund mine construction, development and operation, if needed. Such funding may not be available to the Company on acceptable terms or on any terms at all. For more information on the Company and the risk factors inherent in its business, investors should review the Company's Annual Information Form at www.sedar.com.
Information Concerning Estimates of Measured, Indicated and Inferred Resources
This news release uses the terms "measured resources", "indicated resources" and "inferred resources". Farallon advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
SOURCE Farallon Mining Ltd.
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