Plant Upgrade to be Completed by December 31, 2016
November 17, 2016 – Vancouver, British Columbia. Para Resources Inc. (the “Company” or “Para”) (TSXV – “PBR”) (WKN – “A14YF1”) (OTC – “PRSRF”) announces production guidance for the balance of 2016 and 2017 and provides an update on the completion of the Mill upgrade at El Limon.
For the period starting with the initial commissioning of the El Limon Mine in June 2016 through until October 31, 2016, the Company has produced 1,110 ounces of gold and is anticipating producing an additional 470 to 522 ounces of gold during the balance of the year. Full 2016 production will be between 1,580 and 1,632 ounces of gold. Gold production for 2016 has been negatively impacted by production interruptions due to on-going upgrades.
The second ball mill (“BM2”) has now been installed and will be commissioned in early December. Production from both ball mills is expected to ramp up starting in January 2017 with the targeted goal to achieve design capacity of 200 TPD by September 2017.
For the full year 2017, the Company anticipates processing a total 60,000 T of material to yield between 13,500 to 15,000 ounces of gold. Production figures assume both BM1 and BM2 are operating, achieve an average 85% recovery rate, the average head grade is between 7 and 9 grams per ton of gold and mill throughput grows from 125 tons per day in January to 202 tons per day by September 2017.
For 2018 and beyond, the Company anticipates processing approximately 72,000 tons of throughput at a rate of 200 TPD, at a head grade of between 7 and 9 gpt, with an average 85% recovery rate and producing between 24,000 and 25,000 ounces of gold per year.
Ian Harris, the Company’s President states,” We have made good progress in implementing process improvements at El Limon. The installation and commissioning of BM2 will move us closer to meeting our throughput and recovery goals. We still have a lot of work to do to achieve full design production rates and recoveries but look forward to profitable operations in 2017. The application for operating and environmental permits for the existing mines on the OTU properties that Para acquired a few months ago is under way which assures the El Limon mill has adequate and high grade feed material. The Government of Colombia is expediting this process as they want to eliminate the use of mercury processing in the area. We are also looking forward to determining the extent of additional mineralization present on the OTU properties and being able to quantify a larger area play.”
Geoff Hampson, the Company’s CEO also adds, “With the completion of the installation of the second ball mill at El Limon, the Company will be able to generate positive cash flow, achieving one of our main corporate milestones and allowing senior management to continue to focus on potential acquisitions and growth strategies.”
ABOUT EL LIMON
The El Limon property is located in the northwest part of Colombia near the town of Zaragoza, Antioquia, Colombia and is accessible via both paved highways and gravel roads. The mine is situated in the wide Zaragoza Gold District which extends from El Bagre to Remedios and based on the historical alluvium mining and the number of primary underground gold mines, is considered to be one of the most prolific gold zones in Colombia. The El Limon claims cover a total area of approximately 21,000 hectares, including 129.6 hectares in RPP No. 12011 and 191.1 hectares in the concession contract No. 620 which is located west of the currently exploited zone.
Typical production grades of the region range from 8-12 g/t Au diluted. However, higher grade mines do exist, such as Quintana and El Limon mines at 8-29 g/t Au diluted. Vein widths are typically below 1 m although both the hanging wall and the footwall zones can contain appreciable economic mineralization within the high-grade cores.
The El Limon mine is currently operating underground on Levels 6 and 7 where the diluted head grade continues to be high at approximately 8+ gpt Au. The vein system is open at depth but constrained at both ends by faults. Management believes the El Limon property offers multiple exploration targets that could significantly increase the life of the mine. It is management’s intention to utilize some of the cash generated from mining, to drill the property to expand the number of targeted areas for mining.
Mr. Paulo J. Andrade, a Member of the Australian Institute of Geoscientists (MAIG #6136), Senior Geologist, VP and Country Manager for Para Resources, Inc., a CP/QP under NI-43-101, has reviewed and approved the scientific and technical information in this press release.
ABOUT PARA RESOURCES:
Para Resources is an exploration stage gold mining and toll milling company. Para owns approximately 75% of the El Limon project, in Colombia, which in addition to its current underground operation has toll milling opportunities, and exploration and development upside. In addition, the Company has applied for the necessary permits to commence trial mining operations at its Angelim prospect on the Tucuma Project in Para State, Brazil. Para Resources will continue to take advantage of current market conditions to acquire and develop additional highly economic, near-term production assets that have strong exploration and development upside.
Management’s production decisions for the El Limon Gold Project are not based on a feasibility study of mineral reserves demonstrating economic and technical viability. As a result, the project has a much higher risk of economic or technical failure and may adversely impact the Company’s projected profits, if any. The risks associated with this decision are set forth in the Company’s latest annual management’s discussion and analysis available on the Company’s website and the under Para’s SEDAR profile on www.sedar.com
ON BEHALF OF THE BOARD OF DIRECTORS
“C. Geoffrey Hampson”
C. Geoffrey Hampson, Chief Executive Officer and Director
For further information, please contact Andrea Laird: Telephone: +1-604-259-0302
Neither TSX Venture Exchange nor its regulation service provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements, analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. Management believes that its estimates regarding its production plan and recovery from the El Limon mine are reasonable; however there are no assurances that the production estimates will be met for factors beyond the control of management, including the impact of proposed improvements at the mine, the impact of general business and economic conditions, fluctuating metal prices, currency exchange rates, possible variations in grade or recovery rates, changes in project parameters as plans continue to be refined, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, government regulation, environmental risks and title disputes or claims. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management’s estimates or opinions should change except as required by applicable laws. Investors should not place undue reliance on forward-looking statements.