LAS VEGAS, Feb. 14, 2013 /PRNewswire/ -- Maxam Gold Corporation (OTCPINK: MXAM) http://www.max-amgold.com, a gold mining and development company, announced today that a equipment supplied by Goldfield International will be the processing equipment for Pembina.
A new state of the art mineral extraction system, supplied by Goldfield International, Inc. ("Goldfield") of Provo, Utah will be employed for the separation and recovery of gold from the mined materials. This planned system is comprised of an Alaskan 100 Wash Plant, capable of handling 100 YPH, followed by a 42" Duplex Jig and a 42" quadplex jig. The final section of the recovery system consists of a 30" duplex jig, a 24" round Jig, a 24" magnetic separator and a Goldtron concentrator table. Water for the operation of the extraction/recovery system will be provided by an 8" diesel water pump.
The company's purchase of U.S. manufactured equipment will afford it the use of Political Risk, Currency Conversion and other insurance benefits the U.S Governments Overseas Protection Insurance Corporation ("OPIC"). The Company anticipates that once the equipment clears customs in Nicaragua, it will take from four to six weeks to transport it to its mining site, set it up and place it into production.
Per company Director, Mr. Delgado Lopez, mechanized mining operations in the concession area yield recoveries ranging from 3.0 to 4.5+ grams of gold per cubic meter of gravel processed. Geological reports estimate there are approximately 5,824,000 cubic meters of gold bearing material in these areas in and around the districts river system.
Pembina Limitada, S.A. will start processing 100 to 150 metric tons per day and will increase production as more equipment is delivered to the concession. The company projects that this will result in revenue of approximately $700,000 per month in gold recovered, with a preliminary cost of $250,000, which is a profit margin of 64%, or $450,000 per month. The overall profitability will increase as more heavy equipment is acquired and put into production.
About Maxam Gold Corporation.
Maxam Gold Corporation is a leading gold mining and Development Company based in Nevada with claims in the western United States and Nicaragua. Maxam Gold Corporation was formed in 1975 and has been involved in the mining and exploration of gold since 1985. The current expansion in the price of gold has revitalized the company and its policy of acquiring gold production through acquisition of gold productions company and providing the capital to expand the profitability and production of current operations.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.The words or phrases "would be," "would allow," "intends to'" "will likely result," "are expected to," "will continue," "anticipate," "expect," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "considers," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These include the company's historic lack of profitability, end user customer acceptance and actual demand, which may differ significantly from expectations, the need for the company to manage its growth, the need to raise funds for operations and other risks within the regulation of the industry. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company's past performance is not necessarily indicative of its future performance. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.
SOURCE Maxam Gold Corporation