Timmins Gold (TSE:TMM)(AMEX:TGD) Wednesday filed an updated technical report for its San Francisco gold mine located in Sonora, Mexico.
Total proven and probable NI 43-101 mineral reserves at San Francisco were 72.4 million tonnes at a grade of 0.572 grams per tonne gold with 1.3 million contained ounces. The Mineral Reserves are based on a gold price of $1,100 per ounce.
Amongst the highlights of the report, total gold production was projected at 810,065 ounces from 2011 to 2017, the expansion of crushing facilities are seen at 32,000 tonnes per day in 2012 from the 18,000 tonnes per day given in a prior report.
Average annual production is seen at approximately 130,000 ounces of gold from 2012 to 2017 with base case life of mine cash costs of $633 per ounce and a life of mine operating profit of $455 million.
Timmins Gold president Arturo Bonillas said: "The technical report continues to confirm the robust economics of the San Francisco Mine. The increase in the mineral reserves at the San Francisco Mine has been obtained from the successful drilling undertaken up to June 30, 2011 and higher gold prices."
The report provides a base case scenario for increased production at the San Francisco Mine as a result of rising gold prices and a 104 percent increase in the estimated mineral reserves at the mine. The technical report was prepared by Micon International.
"The decision to increase the capacity of the crushing system to 32,000 tonnes per day has been derived from a number of factors, including the successful drill program and resulting increase in estimated reserves, rising gold prices and the commensurate decrease in cutoff grade and management's conviction that additional reserves are likely to be established in and around the pit and at La Chicharra as a result of the extensive drilling program of over 100,000 metres completed in the second half of 2011," Bonillas said.
The results of of the latest drill program were not included in the technical report. A further updated NI 43-101 technical report incorporating drilling from July 1, 2011 is scheduled for completion in the first quarter of 2012.
Given the known extent of mineralization on the property, compared to the amount of mining activity, the San Francisco project has the potential to host further deposits or lenses of gold mineralization, Timmins Gold said, similar in character and grade to those exploited in the past, outside the present resource base.
Given the prospective nature of the property, it is Micon's opinion that the San Francisco project merits further exploration and that Timmins' proposed exploration plans are properly conceived and justified.
Amongst the highlights of the report, total gold production was projected at 810,065 ounces from 2011 to 2017, the expansion of crushing facilities are seen at 32,000 tonnes per day in 2012 from the 18,000 tonnes per day given in a prior report.
Average annual production is seen at approximately 130,000 ounces of gold from 2012 to 2017 with base case life of mine cash costs of $633 per ounce and a life of mine operating profit of $455 million.
Timmins Gold president Arturo Bonillas said: "The technical report continues to confirm the robust economics of the San Francisco Mine. The increase in the mineral reserves at the San Francisco Mine has been obtained from the successful drilling undertaken up to June 30, 2011 and higher gold prices."
The report provides a base case scenario for increased production at the San Francisco Mine as a result of rising gold prices and a 104 percent increase in the estimated mineral reserves at the mine. The technical report was prepared by Micon International.
"The decision to increase the capacity of the crushing system to 32,000 tonnes per day has been derived from a number of factors, including the successful drill program and resulting increase in estimated reserves, rising gold prices and the commensurate decrease in cutoff grade and management's conviction that additional reserves are likely to be established in and around the pit and at La Chicharra as a result of the extensive drilling program of over 100,000 metres completed in the second half of 2011," Bonillas said.
The results of of the latest drill program were not included in the technical report. A further updated NI 43-101 technical report incorporating drilling from July 1, 2011 is scheduled for completion in the first quarter of 2012.
Given the known extent of mineralization on the property, compared to the amount of mining activity, the San Francisco project has the potential to host further deposits or lenses of gold mineralization, Timmins Gold said, similar in character and grade to those exploited in the past, outside the present resource base.
Given the prospective nature of the property, it is Micon's opinion that the San Francisco project merits further exploration and that Timmins' proposed exploration plans are properly conceived and justified.
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