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Rochester receives environmental approvals and permitting for construction of mill with 300 tonne/day design capacity at Mina Real
Rochester receives environmental approvals and permitting for construction of mill with 300 tonne/day design capacity at Mina Real.
About this update from Rochester Resources Ltd
[{"type":"text","content":"\n\n\n\n\nTSX Venture: RCT\nOTCBB: RCTFF\nFrankfurt: R5I\n\nVANCOUVER, June 21 /CNW/ - Rochester Resources Ltd. (TSXV: RCT; OTCBB:\nRCTFF and Frankfurt: R5I):\nMr. Douglas Good, President, is pleased to announce that environmental\napproval and permitting is now in place to commence site preparation and\nconstruction of a conventional cyanidation processing plant and related\ninfrastructure at the Mina Real gold/silver property located in Nayarit State,\nMexico (the \"Mina Real Property\"). The plant will have a design capacity of at\nleast 300 tonnes/day with initial start-up capacity contemplated at\n200 tonnes/day.\nRochester has earned an initial 20% interest in the Mina Real Property\nwith the right to earn an additional 20% once funding provided reaches\nUS $1.5 million. A further 11% can be earned on payment of US$900,000 in the\nform of option payments.\nConstruction cost of the processing facility is estimated at\nUS $2.5 million with start-up scheduled for late October of 2006. In order to\nfinance the construction of the mill and provide adequate working capital to\nfund operations, Rochester has agreed to provide additional funding to the\njoint venture of up to US $2.5 million in the form of a Participation Funding\nFacility. Under the terms of the agreement, Rochester will receive a Net\nProfits Interest in the project equal to 80% of the cash flow from commercial\nproduction until an amount equal to 125% of the Production Funding Facility\nhas been earned. Rochester has not conducted an independent feasibility study\non the Mina Real project which may increase the risk that the planned\noperations are not economically viable. The Board has relied on the work of\nmanagement, an outside consultant and the project manager in Mexico, who has\nextensive experience in similar size projects from the construction and\noperational perspective.\nContract development mining at the Florida mine site has been ongoing\nsince late April of this year at an estimated rate of 2,500 tonnes per month\nwith the ore being stockpiled in preparation of the commencement of milling\noperations in late October. In addition to an estimated pre-production\nstockpile of approximately 12,000 tonnes, this exploration drift development\nwork will extend management's knowledge of continuity and grade of the Florida\nvein structures a further 250+ ...