Farallon Initiates Off-Take Agreement With Trafigura

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[{"type":"text","content":"\n\n\n\nVANCOUVER, Oct. 28 /CNW/ - Farallon Resources Ltd. ("Farallon" or the\n"Company") (TSX: FAN; OTCBB: FRLLF) announces that it has initiated the\noff-take agreement with Trafigura Beheer BV Amsterdam ("Trafigura") for zinc\nconcentrate produced from the Company's G-9 mine at the Campo Morado\npolymetallic (zinc, copper, lead, silver, gold) property in Guerrero State,\nMexico.\n\n\nG-9 concentrates are being trucked in bulk from the site to the port at\nManzanillo, a full service facility utilized by a number of mines in central\nMexico. Farallon trucked its first concentrate on October 12, 2008, and since\nthat time some 2,000 tonnes have been transported to the storage facilities at\nthe port. Concentrate shipments will increase to 2,600 tonnes per week once\nfull mine production is achieved.\n\n\nThe contract with Trafigura provides for the receipt of advance payments\nfor concentrates stored at the port. Farallon has chosen to initiate the\ncontract to take advantage of this provision. Payments are to be made in\nUS dollars. An advance payment for 500 tonnes of zinc concentrate, a total of\nUS$133,000, has been received.\n\n\nPresident and CEO Dick Whittington said "It is my pleasure to announce\nreceipt of the first payment from production at the G-9 mine. The initiation\nof our off-take agreements with Trafigura and commencement of revenue\ngeneration for the G-9 mine is another major milestone for the Company,\nachieved through the focused efforts of the project team over the past two\nyears."\n\n\nFarallon has advanced the G-9 Project through a 'Parallel Track' program.\nDrilling expanded and confirmed the high-grade mineralization within the\nG-9 deposit in parallel with project construction and development activities.\nUnderground drilling, stope access and development, and mining using an open\nstope method is currently taking place in the North and West Extension zones\nof the G-9 deposit. The mill is mechanically and electrically complete, and\ncommissioning has been underway over the past two months. The rated mill\ncapacity of 1,500 tonnes per day has been achieved, producing zinc concentrate\nover a sustained period. Completion of access to the high-grade Southeast zone\nand initial stope development in this zone is expected in December, with full\nproduction targeted ...

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