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Rochester Resources Ltd
Rochester receives environmental approvals and permitting for construction of mill with 300 tonne/day design capacity at Mina Real
Business
Jun 21 2006
5 min read

Rochester receives environmental approvals and permitting for construction of mill with 300 tonne/day design capacity at Mina Real

TSX Venture: RCT
OTCBB: RCTFF
Frankfurt: R5I

VANCOUVER, June 21 /CNW/ - Rochester Resources Ltd. (TSXV: RCT; OTCBB:
RCTFF and Frankfurt: R5I):
Mr. Douglas Good, President, is pleased to announce that environmental
approval and permitting is now in place to commence site preparation and
construction of a conventional cyanidation processing plant and related
infrastructure at the Mina Real gold/silver property located in Nayarit State,
Mexico (the "Mina Real Property"). The plant will have a design capacity of at
least 300 tonnes/day with initial start-up capacity contemplated at
200 tonnes/day.
Rochester has earned an initial 20% interest in the Mina Real Property
with the right to earn an additional 20% once funding provided reaches
US $1.5 million. A further 11% can be earned on payment of US$900,000 in the
form of option payments.
Construction cost of the processing facility is estimated at
US $2.5 million with start-up scheduled for late October of 2006. In order to
finance the construction of the mill and provide adequate working capital to
fund operations, Rochester has agreed to provide additional funding to the
joint venture of up to US $2.5 million in the form of a Participation Funding
Facility. Under the terms of the agreement, Rochester will receive a Net
Profits Interest in the project equal to 80% of the cash flow from commercial
production until an amount equal to 125% of the Production Funding Facility
has been earned. Rochester has not conducted an independent feasibility study
on the Mina Real project which may increase the risk that the planned
operations are not economically viable. The Board has relied on the work of
management, an outside consultant and the project manager in Mexico, who has
extensive experience in similar size projects from the construction and
operational perspective.
Contract development mining at the Florida mine site has been ongoing
since late April of this year at an estimated rate of 2,500 tonnes per month
with the ore being stockpiled in preparation of the commencement of milling
operations in late October. In addition to an estimated pre-production
stockpile of approximately 12,000 tonnes, this exploration drift development
work will extend management's knowledge of continuity and grade of the Florida
vein structures a further 250+ metres to the North-West.
During May a 1,700+ metre extension of the mine access road was completed
from the base of the Florida Mine site to the Tajos Cuates mineralized
structure, which has the potential to be mined as a separate ore body. A
1,600 metre drill program is currently underway in this recently accessed
section of the property to obtain a better understanding of the potential. The
January 22, 2006 43-101 Report prepared by Victor Jaramillo, P. Geol. made the
following comments on Tajos Cuates:
"A Vein system called Tajos Cuates south of the Florida Veins, has also
been visited and sampled by the writer. One of the samples taken of the vein
has a true width of 1.70 meters and is composed of fractured quartz and
concentrations of limonite and manganese oxides. It appears to be a large zone
of secondary enrichment. It returned 2.77 g/t gold and 1,330 g/t silver."
The President of the Company's Mina Real joint venture, Dr. Alfredo
Parra, discovered the property and has been responsible for progressing this
exploration project to its current state of advanced development. Dr. Parra
has an extensive background in exploration and mining in Mexico in roles
ranging from Mine Superintendent to senior executive positions with major
companies such as Kennecott and Penoles. He brings to this project extensive
experience in the design, construction and management of a number of Mexican
based mines ranging in capacity from 200 to 1,000 tonnes per day.
The Board of Rochester is extremely pleased with the significant progress
that Dr. Parra and his team have made at the Mina Real property. It was the
Company's objective to acquire an interest in a property which had near term
production potential and the Mina Real project has exceeded all expectations.

ON BEHALF OF THE BOARD

"Douglas Good"
----------------------------------
Douglas Good, President & CEO

Forward Looking Statements
--------------------------
This Company Press Release contains certain "forward-looking" statements
and information relating to the Company that are based on the beliefs of the
Company's management as well as assumptions made by and information currently
available to the Company's management. Such statements reflect the current
risks, uncertainties and assumptions related to certain factors including,
without limitations, competitive factors, general economic conditions,
customer relations, relationships with vendors and strategic partners, the
interest rate environment, governmental regulation and supervision,
seasonality, technological change, changes in industry practices, and one-time
events. Should any one or more of these risks or uncertainties materialize, or
should any underlying assumptions prove incorrect, actual results may vary
materially from those described herein. The TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy or the accuracy
of this release.