Farallon Announces Positive Cash Flow From G-9 Mining Operations

About this update from First Atlantic Nickel & Cobalt Corp.

[{"type":"text","content":"\n\n\n\nSecond Quarter Financial and Operating Results Filed Today\n\n\nVANCOUVER, Aug. 12 /CNW/ - Dick Whittington, President and CEO of\nFarallon Mining Ltd. ("Farallon" or the "Company") (TSX:FAN) is pleased to\nannounce the financial and operating results for the Company for the three\nmonths ending June 30, 2009. Currency is United States dollars unless\notherwise indicated. This news release should be read in conjunction with the\nCompany's financial statements and MD&A, which are available on SEDAR.\nFarallon will hold a conference call tomorrow, Thursday August 13th, at 8:00\nam Pacific time (11:00 am Eastern) to discuss these results. Call-in details\nare provided at the end of this release.\n\n\nThe Company generated cash flow from mining operations(1) of $5.7 million\nwith an operating profit of $1.4 million. Production included zinc contained\nin zinc concentrates of 21.3 million pounds, copper in copper concentrate of\n1.7 million pounds and additional by-product lead, silver and gold. The total\ncash cost(1) including transportation and treatment and refining charges but\nnet of by-product credits was $0.39/lb of payable zinc.\n\n\nPresident and CEO Dick Whittington said "The G-9 mine's first quarter of\ncommercial production shows that the operation is capable of producing high\nquality zinc concentrates at low cash cost. Further improvements in\nmetallurgical recovery and mill throughput are anticipated during the second\nhalf of 2009, targeted to increase production to 120 million pounds of zinc\nannually with cash costs in the lowest quartile of zinc producers. Now that\nthe balance sheet has been restructured and the mine is generating operating\nprofits, Farallon is well positioned to establish a solid operational base\nfrom which to grow, through further exploration at Campo Morado and accretive\ntransactions. Our goal is to become a multi-mine, mid-tier, mining company".\n\n\nFinancial and operational highlights for the three months ended June 30,\n2009 are as follows:\n\n- Generated cash flow from mining operations(1) of $5.7 million in its\n first quarter of commercial production at the G-9 mine.\n- Operating profit of $1.4 million.\n- Increased working capital to $13.7 million at June 30, 2009 from a\n deficit of $17.8 million at March 31, 2009.\n- Generated revenues of ...

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