I guess UC can mill 300 tons per day now? info here
2006-05-09 16:00 ET - News Release
Shares issued 56,431,259
UC Close 2006-05-09 C$ 0.52
UC RESOURCES LTD. ANNOUNCES MAR PROJECT ADDED TO MINERA SILVER CREEK ACQUISITION
Minera Silver Creek SA de CV (which, subject to regulatory approval, is being acquired 100 per cent by UC Resources Ltd. -- see news in Stockwatch on April 20, 2006) has signed a letter of intent to acquire the MAR production and exploration assets for a cost of $70,000 (U.S.). The MAR project consists of a 100-hectare mining exploitation concession and contains an ore dump that is immediately ready to be processed. It is the company's intention to add to the land package in due course.
Minera Silver Creek is also adding a 100-tonne-per-day milling facility to the MAR package, at a cost of $120,000 (U.S.), payable over 12 monthly instalments of $10,000 (U.S.) each. This mill is a completely self-contained and a modern portable unit that can be used at any of UC's projects in the future.
With the La Yesca and the MAR projects, Minera Silver Creek will have the ability of processing 300 tonnes per day of feed through these two milling facilities.
One of UC's key business objectives in its growth phase is to have an exploration arm in Mexico as well as an operating arm. Minera Silver Creek will be the operating arm of the company, whereas UC's Minera Planet Exploration SA de CV will continue to be the exploration arm of the company, and continue to develop and prove up the Copalquin project located in the northwest portion of Durango state.
UC retained a qualified person pursuant to National Instrument 43-101, who recently visited both the MAR and the La Yesca properties (see April 20 acquisition news release) for nine days and is completing two technical reports for UC's management to complete its due diligence. Results of the sampling at the two projects are still pending but are expected to be received within the next two weeks.
Closing of the Minera Silver Creek acquisition by UC is expected within 30 days, and is subject to TSX Venture Exchange approval.
The La Yesca mining project is located near the town of La Yesca, in the state of Nayarit, and is located approximately 200 kilometres west of Guadalajara, Mexico. The project consists of a 600-hectare mining concession which includes two previous producing mines. The project also includes a modern milling facility capable of milling 200 tonnes per day of feed. Approximately 200,000 tonnes of tailings are available to process immediately, with the tailings containing good grades of both gold and silver.
The company's due diligence in regard to the La Yesca project included the processing of a large bulk sample, which yielded high recoveries for both the gold and silver components contained in the tailings, using a copper thiosulphate extraction process. Particulars will be available on receipt of the National Instrument 43-101 report.
On closing, the mill will be upgraded and slightly modified to add significantly higher recovery rates principally for the extraction of silver, and the expected start-up time for the mill will be approximately three to four months, after closing of the transaction. Production will originally be derived from the existing tailings and will be followed by ore that will be processed from existing stockpiles. An assessment as to the size of the stockpiles is currently under way. Preliminary work on the existing mine sites will begin immediately, with the start of a drilling program in September, with the objective of mining in the first quarter of 2007. The company will issue progress reports in a timely manner and as work progresses.
UC has made several significant corporate achievements of recent and is currently on the drilling phase of the 2005-2006 phase 2 exploration program on its 200-square-kilometre (approximately) 100-per-cent-owned historically productive gold and silver Copalquin project. The Copalquin mining district is located in northwestern corner of the state of Durango, Mexico, and is centrally position within Mexico's prolific Sierra Madre mining belt. Copalquin has returned both high-grade gold and silver results from recent drilling in phase 1 and phase 2 exploration program and the company expects to have regular updates to update it shareholders on its three projects.
In lieu of these latest acquisitions, management of UC has decided not to proceed with the acquisition of the milling facilities of the 60-tonne-per-day La Dura project, and has decided to acquire larger, more modern and versatile facilities.
We seek Safe Harbor. |
