Thursday, 15 March 2012

Timmins Gold increases inferred resources at San Francisco gold project by 34%

Timmins Gold Corp. (TSE:TMM)(AMEX:TGD) Wednesday unveiled an updated NI 43-101 resource estimate for its San Francisco gold project in Sonora, Mexico, boosting inferred resources by 34 percent.
Timmins Gold said that in the inferred category, total resources at the San Francisco and La Chicharra pits now stand at 1.5 million ounces of gold represented by 81.8 million tonnes grading 0.6 grams per tonne (g/t) gold.
Total measured and indicated resources amount to 1.4 million ounces of gold represented by 93.2 million tonnes grading 0.45 g/t gold.
The most recent drill program added 134,000 ounces of measured and indicated resources and 346,000 ounces of inferred resources, the company said.
"This is another important milestone for the company as the updated resources continue to show that the San Francisco mine life will most certainly expand again beyond its current level," said Timmins Gold's chief executive Bruce Bragagnolo.
"Based on the success of this drill program, the company has restarted the drill program at San Francisco and La Chicharra, and anticipates completing an additional 100,000 metres of drilling in this program."
The last resource estimate for San Francisco was announced in September 2011, when Timmins Gold reported total inferred resources of 1 million ounces of gold represented by 73.7 million tonnes grading 0.42 g/t gold, and total measured and indicated resources of 1.4 million ounces of gold represented by 73.6 million tonnes grading 0.609 g/t gold.
Timmins Gold's San Francisco project comprises the San Francisco and La Chicharra pits. The past-producing La Chicharra pit is located 1.5 kilometres west of the San Francisco open pit.
The updated mineral resource was audited by Micon International and is derived from information obtained from a drill program of 370 holes of core and reverse circulation drilling totaling 85,166 metres, completed between July and November 2011.
In late 2011, Timmins Gold published a technical report projecting total gold production at San Francisco of 810,065 ounces from 2011 to 2017, with average annual production seen at approximately 130,000 ounces of gold from 2012 to 2017. Base case life of mine cash costs were estimated at $633 per ounce, with a life of mine operating profit of $455 million.
Timmins Gold is a Mexico-focused gold producer. It has forecast production at a rate in excess of 100,000 ounces of gold per year.

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