UC Resources Announces Significant Results at La Yesca
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/01/13 -- UC
Resources Ltd. ("UC" or the "Company") (TSX VENTURE:UC) is pleased to
announce that it has successfully concluded physical testing over the
past number of weeks at its La Yesca facility in Mexico. The results
of the testing indicate that tailings already processed at La Yesca
can be reprocessed by the Company to achieve a reasonable recovery
return for silver and gold. The results from the test showed that
approximately 75% of original recovery could be achieved from the
reprocessing of tailings previously processed. Other associated costs
of production such as cyanide usage and equipment usage are lower on
reprocessed tailings, so the Company believes the net result will be
that revenues will be closer to approximately 80% of normal, once
these factors a
re taken into account.
The significance of the testing is that the Company will now be able
to proceed to process all tailings accumulated in three separate
tailings ponds at the site. In order to accommodate this production,
the Company has entered into an agreement with Clifton Environmental
Services Ltd for the development of a larger tailings pond facility
to accommodate the Company's production for the next approximately
five years of processing, reprocessing and virgin ore extraction.
"We attribute the positive results of the La Yesca physical testing
to the recent improvements we've made to the machinery and personnel
at the facility, as well as the cost saving measures we have taken
following our analysis of the facility's operations," said Jim
Voisin, President and COO of UC.
The Company plans to run a mix of newer tailings combined with older
tailings to maximize and extend production as much as possible at La
Yesca. This does not include the raw material the Company believes it
will obtain through the narrow mining of the XORA concession. The
Company announced on December 2012 that it had discovered a
significant silver vein structure at XORA.
The Company will begin discussions with a Narrow Vein Mining
Contractor firm for the XORA concession. The Company plans to mine,
deliver, crush and process this raw material at the La Yesca mill.
The Company is also in negotiations with an
off site location to
acquire additional higher grade feed to the La Yesca mill operation.
The Company has had an extensive testing period at La Yesca. It is
also important to note that the Company has not completed an
independent feasibility study on the La Yesca milling operation.
The Company is positioning itself now to take advantage of any
possible Silver and Gold price increases that may occur in 2013
Recently the Company contracted an industry specialist to assist the
Company in the development of practices, proper reporting and
accounting procedures for the Company as it relates to Commercial
Production. It will be necessary to accurately and readily report on
Commercial Production at La Yesca to regulators and other interested
parties. The Company has not yet claimed Commercial Production Status
but it is necessary for these reporting functions and procedures to
be in place prior to that taking place.
Under IFRS accounting standards, commercial production is determined
to have begun when the following are true:
-- all major capital expenditures to bring the mine to the condition
necessary for it to be capable of operating in the manner intended by
management have been completed;
-- the completion of a reasonable period of testing of the plant and
-- the ability to produce saleable product (e.g., the ability to produce
precipitate / concentrate within specifications);
-- the mill has reached a pre-determined percentage of design capacity;
-- mineral recoveries are at or near the expected production level; and,
-- the ability to sustain ongoing production.
The Company believes that it has demonstrated that it has achieved
all of the elements of commercial production except for the final
element, "the ability to sustain ongoing production."
In accordance with commercial production reporting requirements, the
Company will make any announcement regarding the move to Commercial
Production concurrently with the beginning of a Reporting Quarter.
On behalf of the Board of Directors,
Gary Monaghan, Chief Executive Officer
We seek safe harbour.
Investors or interested parties are invited to visit the UC Resources
Website at http://www.ucresources.net - where they can choose to join
the opt-in e-mail list to receive all future press releases and
updates in real time.
This news release includes certain forward-looking statements or
information. Forward-looking statements in this release include that
reprocessed tailings will result in higher recovery returns for
silver and gold at increases from approximately 75 to 80% of normal,
UC will proceed to process all tailings accumulated in its three,
separate tailings ponds, UC will process the described mix of
tailings to maximize and extend production at La Yesca, UC will
obtain new raw material through the narrow mining of the XORA
concession, UC will begin discussions with a Narrow Vein Mining
Contractor firm for the XORA concession, UC will mine, deliver, crush
and process raw material from XORA at the La Yesca mill and that UC
will take advantage of any possible Silver and Gold price increases
that may occur in 2013 forward. Forward-looking statements in this
release include all statements other than those of historical fact,
including, statements relating to the potential mineralization and
geological merits of the La Yesca properties and other future plans,
objectives or expectations of the Company. Forward-looking statements
involve various risks and uncertainties. There can be no assurance
that such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to
differ materially from the Company's plans or expectations include
risks relating to the actual results of current exploration
activities, fluctuating gold and silver prices, the possibility of
equipment breakdowns and delays, exploration cost overruns,, the
availability of capital and financing, general economic, market or
business conditions, regulatory changes, timeliness of government or
regulatory approvals and other risks detailed herein and from time to
time in the filings made by the Company with securities regulators.
The Company expressly disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events or otherwise except as otherwise required
by applicable securities legislation.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
UC Resources Ltd.
Chief Executive Officer
Press spacebar to pause and continue. Press esc to stop.