The following press release was posted today. This is an exiting development for this company. If anyone has been following it and would like to discuss this release check out the canada-stockwatch forum or go to Plata's website Platamining.com
This is the first move in a long range plan by Plata to become a profitable mining company by developing small open pit properties
Plata Regains 100% Control of Hualilan Gold Production
Dr. Ricardo Auriemma, president and CEO o Plata Mining Limited ("Plata)announced today that the Hualilan gold property in Argentina will take the next step towards production with Plata retaining 100% ownership in the property. Explodesa has relinquished its 65% interest in the Hualilan gold project back to Plata.
Capital Resources& Investments Ltd. (CRIL), of Bermuda, has offered to provide up to US $2,000,000 in production financing to Plata. Funding is proposed to be advanced by way of a convertible debenture with a right to convert debt to equity at the lender's options at any time up to production.
Patrick Paden of Aaron Equipment of Chicago, a major provider of mining equipment for over 60 years has agreed to locate and coordinate the installation of the required equipment needed for the Hualilan gold production. The installation of the equipment is dependent upon funding being in place.
During the next few months Plata will complete several studies that are required by law in Argentina prior to start-up of the Hualilan gold production of an expected 300 ton per day operation. The task of restoring an underground sloping ramp, 3.5 metes by 4 metes open to depth of over 400 metres has been completed. This project is ahead of its original schedule. Recent 100 ton bulk sample results have confirmed earlier preliminary work that produced better than 90% recovery of high grade gold containing 12 grams per ton average diluted grades.
Hualilan's proven reserves permit the operation for several years of gold production with approximately 25,000 to 30,000 ounces per year with costs that are estimated to be not more than U.S. $ 180 per ounce per ounce. The original property position has been considerably expanded and presently Plata controls a total of 10,755 hectares at Hualilan. Ther s evidence of a possible gold resource of at least 1,000,000 ounces on the original 338 hectare property at Hualilan as stated in Plata's press release date December 8, 1998. These internally generated projections ae supported by Plata's and Explodesa's findings as to the quality of the mineral at Hualilan.
CRIL is reviewing further mining reports on Plata's other two projects, the Helvicia and Paraguay properties and it believes that these two properties add a tremendous value to the overall asset base of Plata Mining Limited. Both these prooperties have potential for joint venture partners in the future.
Both Plata Mining Limited and Capital Resources&Investments Lt have laid out a very aggressive schedule and work program for bringing the Hualilan gold property into production. Reuters news service quoted Dr. Auriemma on Monday, January 18 in Buenos Aires that "annual sales from the operation are expected to be US $6,000,000 to US $7,000,000. Production will add a tremendous value to Plata for future work commitments and projects without further dilution to the company and its shareholders. |
