Strong Mine Production and Start of the Gold Road Mill put the Project Back on Track
October 24th, 2019, Vancouver, B.C. – Para Resources Inc. (the “Company” or “Para”) (TSXV – “PBR”) (WKN – “A14YF1”) (OTC – “PRSRF”) is pleased to announce the successful start of the Gold Road mill and CIL plant on October 23rd, with expected doré production to begin in early November. During an extended circuit test in Q1 of 2019, the mill and plant operated as planned and achieved doré production at the benchmark gold recovery rate of 95%.
Since the beginning of June 2019 when the new mine plan was put into effect, Gold Road has completed 245 feet of raise and incline to complete a new secondary escape route from the lowest levels of the mine, and over 1,000 feet of development to create new production faces, including an extension of the existing decline to the 950 level. Low-grade mineralized material recovered during development has been stockpiled separately from the production from the developed faces that started producing at the beginning of October.
As of October 20th, run-of-mine stockpiles contained 5,100 mt at an average grade of 4.1 g/mt Au. Production from the beginning of October through the 20th of the month was 1,985 mt averaging 7.2 g/mt Au, including for the three days from October 17th through the 20th, a combined 633 mt averaging 9.6 g/mt Au. The mine is currently producing from five production faces, including stoping at the 100-level and two sublevels, the 3100E and 2900E, both of which have two headings; east and west. Both sub-levels are off of the new extension of the main decline. Face channel sampling from October 20th and 21st at the 3100E east heading, included in the table below, reported 3.6 meter at 25.0 g/mt Au (including 0.5 m at 48.9 g/mt Au) and 5.1 m at 11.5 g/mt (including 0.8m at 33.4g/mt Au). Channel samples are true width of the vein, or other structure/rock type, before drilling and blast of the production face. Assay results are produced by AA (Atomic Absorption) and verified by Fire Assay at the onsite laboratory of the company. Results indicate that the heading has entered the target zone for anticipated future stope production.
|3310 East||Sample Date:||10/20/19|
|Sample ID||Width (m)||Fire Assay (Au g/mt)||AA (Au g/mt)|
|Total / Average||3.59||29.4||25.0|
|3310 East||Sample Date:||10/21/19|
|Sample ID||Width (m)||Fire Assay (Au g/mt)||AA (Au g/mt)|
|Total / Average||5.12||12.1||11.5|
Mine production has rapidly increased in October and is expected to continue to increase as additional production faces come online. The plant start-up plan is to run at an average of 227 tonnes per day, increasing to 454 mt/day (500 short tons per day) by the end of the year as plant staff and mine production is expected to increase.
Ian Harris, President of Para Resources, stated, “We are very excited to have started production at the Gold Road plant, after a significant modification to the mine plan caused by a change in prior approvals from MSHA. In addition to the major modification to the secondary escapeway, we decided to take advantage of the time to focus on advancing development. The work has set up the mine for sustainable production and pushed toward higher-grade areas. Mine production and grade continue to ramp-up quickly, and we are confident, based on our previous sustained testing, that the plant will operate at high availability and excellent recoveries.”
Paulo J. Andrade, BSc Senior Geologist, VP Exploration for Para Resources is the Qualified Person, who is responsible for the technical information contained in this news release.
ABOUT PARA RESOURCES:
Para is a junior producing gold mining company. Para owns 88% of the Gold Road Mine in the Oatman District of Arizona. The Company has hired RPM Global as consulting engineers in order to produce a NI 43-101 Technical Report which it expects will establish a current Mineral Resource estimate and anticipates that it will publish a NI 43-101 PEA thereafter. The Company also owns approximately 80% of the El Limon project, in Colombia, which in addition to its current underground operation is purchasing mineralized rock mined by small artisanal miners working on the Company’s property. The El Limon and OTU properties also have exploration and development upside. Para 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.
On behalf of the Board of Directors
“C. Geoffrey Hampson”
Geoffrey Hampson, Chairman, Chief Executive Officer and Director
For further information, please contact Andrea Laird, telephone: +1-604-259-0302
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Cautionary Note Regarding Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company’s properties; success of exploration, development and mill processing activities; and the anticipated results to be achieved from operation of the Gold Road Mine. The Company also cautions that there is no assurance that past production at Gold Road or production at nearby mines is indicative that the Company will achieve similar results. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the asset purchase agreement will close as anticipated. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.