Plant operating 24/7 effective June 6, 2016
June 14, 2016 – Vancouver, British Columbia. Para Resources Inc. (the “Company” or “Para”) (TSXV – “PBR”) (WKN – “A14YF1”) is pleased to announce that its high-grade gold mine and mill at El Limon in Colombia has been operating since May 14th on a one shift per day basis while processes were optimized and second shift personnel were trained. The plant operated during the period of May 14th through June 13th at 22.4% of design capacity as a result. During that time there were two maintenance shut downs for a total of approximately 12 days of lost time. These shut downs were primarily caused by start up mechanical issues with ball mill number 1 and with the grind sizing. The source of both of these issues have been identified and corrected and continuous operations have recommenced.
Also during the initial 30 days of operations, the Company brought in additional experienced foreign nationals to speed up the training of local crew. Second shift personnel completed training and 24/7 operations commenced June 6th. The increase in the number of operating hours per day has increased through put to approximately sixty tons per day.
During the first 30 days, the plant processed approximately 400 tons of rock at a daily average head grade of between 3.40 gpt and 17.35 gpt with an average gold recovery of 84.14 %, resulting in the production of 108.08 ounces of gold. The average head grade for the period June 1 to June 13th was 8.84 gpt.
Gold production is expected to increase to 200 ounces in June, 400 ounces in July, 600 ounces in August and 800 ounces in September.
PROCESS PLANT UPDATE
Leaching (Addition of Cyanide)
Geoff Hampson, CEO of Para Resources, commented:
“It is gratifying to see the plant operations and ramp up plan coming together as anticipated. The minor adjustments needed to optimize plant operations are fewer and of a more minor nature than normally expected in a typical start-up. Over the next several months, the Company anticipates production will increase gradually to the planned 200 TPD and that recoveries will improve to 90+%. Gold production plan is anticipated to continue to increase on a monthly basis as the process improvements are implemented and the Ball Mill Number 2 comes on line in August. Gold production is anticipated to be between 1,200 and 1,500 ounces per month in 2017.”
The Company also announces that it has applied for DTC Eligibility to allow US shareholders to trade the Company’s stock in the USA. The process is expected to take 3 to 4 weeks.
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 321 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 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 70% 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 is gearing up to commence trial mining operations at its Tucuma Project and in particular on the Angelim prospect 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.
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: 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.