Tara Gold Announces a Portable Crushing Plant Has Been Purchased for Lluvia de Oro Gold Mine
Market Wire
Posted: 2007-10-30 09:18:01
CHICAGO, IL -- (MARKET WIRE) -- 10/30/07 -- Tara Gold Resources Corp. (PINKSHEETS: TRGD) (FRANKFURT: T8N) is pleased to announce that a portable crushing plant, the Nordberg NW-1415 VFR, has been purchased for the Lluvia de Oro gold mine located in Sonora, Mexico. This equipment item is critical to the company's plan of pursuing commercial production, in the near term, at the past producing Lluvia de Oro gold mine.
Tara Gold Resources signed an agreement with Columbia Metals Corporation, whereby Columbia can acquire 100% interest, subject to Tara's ongoing 20% Net Cash Flow interest from any revenue generated from the processing plant, by making payments totaling $4,337,500, and issuing 1,000,000 shares to Tara Gold.
Columbia Metals, the operator, will use the crusher to reduce the partially-leached ore on the Lluvia de Oro heap to a nominal minus 1 inch size. The original metallurgical test work, which was conducted prior to the commencement of leaching operations in April 1996, indicated that at a nominal crush size of minus 1 inch, a recovery of 81% gold could be achieved.
In addition to the above equipment, Columbia has informed Tara that the civil contract for construction of the SART (Sulphidisation-Acidification-Recycling-Thickening) copper precipitation circuit has been awarded to Akiwiki Construcciones, S.A. de C.V, a division of Constructora Garaco, S.A. de C.V. of Hermosillo, Mexico. The scope of the contract covers site excavation, electrical grounding, and reinforced slab (1575 sq. mt.) and foundation construction. Work commenced during the week of October 29 with an expected completion date in December of 2007. Installation of tanks and mechanical components will follow the completion of worksite preparation. Completion of the SART plant is scheduled for the first quarter of 2008, just subsequent to first planned gold production at the site.
Mr. Francis Biscan Jr., President of Tara Gold Resources, stated, "Our partner continues to make progress towards production start-up at Lluvia de Oro. Our 20% Net Cash Flow interest from the processing plant will add considerable value to Tara Gold shareholders."
About Tara Gold Resources Corp.
Tara Gold Resources Corp. is a growth-oriented precious metals exploration and development company with existing production plants. It is management's objective to become a significant gold and precious metals producer by re-initiating and increasing production levels at La Currita, Lluvia de Oro and Picacho, and developing the San Miguel, La Millionaria, Pilar De Mocoribo and Las Minitas projects in Mexico. We continue to acquire other advanced-stage projects and/or producing mines in one of the most prolific precious metal districts in the world. For more information, please visit the Company's web site at: taragoldresources.com . |
