Business
Farallon to review original four deposits at Campo Morado
Farallon to review original four deposits at Campo Morado
About this update from First Atlantic Nickel & Cobalt Corp.
[{"type":"text","content":"\n\n\n\n Jun. 29, 2010 (Canada NewsWire Group) -- Approximately one million ounces of gold in indicated resources\n\nStudies to target building a second mine by July 1, 2013\n\n Farallon Mining Ltd. ("Farallon" or the "Company") (TSX:FAN) announces that as a result of the recent rapid rise in gold prices, the Company is formally initiating studies to re-evaluate the Reforma, Naranjo, El Largo and El Rey deposits to assess the feasibility of building a second mine at Campo Morado, with a target start date of July 1, 2013. The Company already has one operation at Campo Morado - the G-9 mine - currently operating at 20 - 30% above design capacity. The second mine would piggy back on infrastructure already in place and be "incremental" to the current G-9 mine operation.\nIndicated resources for the Reforma, El Rey, Naranjo and El Largo deposits total 11.2 million tonnes of 4.7% zinc, 0.7% copper, 1.4% lead, 165 grams per tonne of silver and 2.7 grams per tonne of gold (see news release dated September 19, 2005 and Table 1 attached). Contained gold totals 960,000 ounces and contained silver totals 60 million ounces. A map showing the location of these deposits, relative to the Company's operating G-9 mine is attached. (To view the Campo Morado Deposits Map, please visit: http://files.newswire.ca/844/FAN_NewsRel_AllDeposit.pdf) The Company ceased evaluation of these deposits in late 2005 after the richness of the G-9 deposit became apparent, and since that time has been exclusively focused on building the G-9 mine and ramping it up to full production, which was achieved in the fourth quarter of last year.\nLow metal prices in late 2005, particularly for by-product metals - a key component of any polymetallic deposit, the need for substantial initial capital investment, and testwork indicating low metallurgical recoveries, rendered the deposits uneconomic at that time; however, three significant developments have occurred since then:\n1) The price of gold has tripled from $425/oz to $1240/oz as highlighted in the attached price chart for gold; To view the Gold Price USD chart please visit: http://files.newswire.ca/844/Gold_Price_USD_(3).pdf\n2) Infrastructure for the G-9 mine, including the mine, a mill, access road, power lines and administration offices has been put in place, and\n3) The G-9 mine is full...