Pan American Goldfields Ltd Announces Cieneguita Gold-Silver Project Pre-Concentrate/Concentrate Shipments On TargetBy Pan American Goldfields Ltd, PRNE
Sunday, November 28, 2010
Producing Gold, Silver and Lead in Concentrates
BROOMFIELD, Colorado, November 29, 2010 - Further to its press release of November 9, 2010, Pan American Goldfields
Ltd (OTCBB:"MXOM") (the "Company") is pleased to announce that the company's
partner Minera Rio Tinto (MRT) continues to increase production and optimize
operations at the Cieneguita project mill in Chihuahua, Mexico as projected
previously. Pre-concentrate produced at the Cieneguita mill is shipped for
further processing at MRT's mill at Choix, Mexico, where final concentrates
are produced and shipped to the Trafigura warehouse in Manzanillo for sale
under a contract with Trafigura.
Prior to the recent installation and commissioning of the ball mill and
additional flotation cells, bulk sulfide pre-concentrate production included
380 tonnes in July, 462 tonnes in August, and 499 tonnes in September of
2010. In October, over 1,000 tonnes were produced, although only 702 tonnes
were shipped due to the installation schedule associated with the
filtration/drying equipment, which is now fully installed and operating. It
is estimated that over 1,500 tonnes will be shipped in November, including
the unshipped October production.
Following further treatment at Choix, final lead and zinc concentrates
are shipped for sale to Trafigura in Manzanillo, Mexico. Final concentrates
produced and shipped to Trafigura during October and the first 10 days of
November are summarized in the table below::
FINAL CONCENTRATE SHIPMENTS SENT FOR SALE TO TRAFIGURA Date of Shipment Tonnes Gold grams/tonne Silver grams/tonne Lead Content % October 10 59.6 62 4,445 24 October 22 36.0 54 4,220 23 November 4 30.3 61 4,630 27 November 10 33.2 54 3,450 23
Another 100 tonnes is being readied for shipment as of the date of this
"We are very pleased with progress to date as the initial production
following the installation of the ball mill is as forecast," said Mario Ayub
Chairman, Pan American Goldfields.
MRT, the company's partner, has advised the Company that it expects to
continue increasing pre-concentrate production at Cieneguita along with
improved metal recoveries as the ball mill grinding process is fine-tuned.
The amount of ore material mined and processed at Cieneguita is currently
about 500 tons per day and it is intended to increase this amount to 600 tons
per day by year end. This amount of ore production would relate to the
production of approximately 260 tons of concentrate per month with metal
contents similar to current concentrate shipments.
The Cieneguita mill makes a bulk sulfide flotation concentrate that is
sent to the MRT owned mill at Choix where it is then reground and separate
lead and zinc concentrates produced. These concentrates are then shipped to
the port at Manzanillo where they are sold under contract to the trading
company Trafigura. Most of the gold and silver report to the lead
concentrate. The anticipated increase in the production capacity at
Cieneguita will not require any modifications to the plant at Choix. Pan
American currently has a joint venture agreement with MRT under which MRT can
earn 60% of the project by successfully initiating production on a small
scale, followed by the funding of an additional $4 million toward the
completion of a bankable feasibility study. With the completion of the
construction start-up phase at Cieneguita, the focus will now be the
acceleration of the feasibility study. This study will evaluate a full-scale
operation which will target a production rate of about 5,000 tonnes of
material processed per day along with saleable metal production directly from
the Cieneguita site.
The technical information in this release has been prepared by Gary A.
Parkison, CPG, a Director of the Company and a Qualified Person as defined by
About Pan American Goldfields/MexoroMinerals
Pan American Goldfields is a Chihuahua, Mexico based precious metal
producer and exploration company. It is a specialist in exploration, mine
development and production in Mexico's booming Sierra Madre Gold-Silver Belt.
The company's most advanced project is its now producing Cieneguita Gold Mine
where a feasibility study to significantly increase the mine's already
growing production profile is underway.
On behalf of the Board of Directors,
Mario Ayub, Chairman
Safe Harbor Disclosure
The information in this press release contains forward-looking statements
regarding future events or the future financial performance of the Company.
Please note that any statements that may be considered forward-looking are
based on projections; that any projections involve judgment, and that
individual judgments may vary. Moreover, these projections are based only on
limited information available to us now, which is subject to change. Although
those projections and the factors influencing them will likely change, we are
under no obligation to inform you if they do. Actual results may differ
substantially from any such forward looking statements as a result of various
factors, many of which are beyond our control, including, among others, the
timing and outcome of our feasibility study on our Cieneguita Project; the
costs and results of our initial production activities on our Cieneguita
Project; the future financial and operating performances of our projects; the
timing and amount of funds received from the sale of our Guazapares Project
the estimation of mineral resources and the realization of mineral reserves,
if any, on our existing and any future projects; the timing of exploration,
development, and production activities and estimated future production, if
any; estimates related to costs of production, capital, operating and
exploration expenditures; requirements for additional capital and our ability
to raise additional capital on a timely basis and on acceptable terms;
government regulation of mining operations, environmental risks, reclamation
and rehabilitation expenses; title disputes or claims against our existing
and any future projects; and the future price of gold, silver, or other
minerals. These and other factors can be found in our filings with the SEC.
The Company undertakes no obligation to release publicly the results of any
revision to these forward-looking statements to reflect events or
circumstances following the date of this release.
For further information:
Christopher R Anderson, Investor Relations, +1-604-628-7065,
+44(0)20-3-371-7844, UK, London, info@PanAmericanGoldFields.com
For further information: Christopher R Anderson, Investor Relations, +1-604-628-7065, +44(0)20-3-371-7844, UK, London, info at PanAmericanGoldFields.com
Tags: Broomfield, Colorado, November 29, Pan American Goldfields Ltd