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
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
"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
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
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
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.