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Wednesday, 21 November 2012
Timmins Gold says metallurgical testing shows potential to further improve recoveries at San Francisco mine
Vancouver-based Timmins Gold Corp. (TSE:TMM)(NYSE MKT:TGD)(AMEX:TGD) reported Wednesday results from bulk sample leach testing at its San Francisco mine in Mexico, showing average gold extraction rates as high as 80.9 per cent.
"We are encouraged by the metallurgical results from this recent metallurgical testing program," said CEO Bruce Bragagnolo.
"We will continue to use a Life of Mine (LOM) recovery of 68.6% gold recovery in our planning and analyses, based on our most recent mine plan and block model.
"We believe, however, that the results of this testing program indicate there is potential to further improve our recoveries through process optimization."
The recent column leach testing results, based on a crush size of 80 per cent of the particles, passing 3/8 inch, showed an average gold extraction of 71 per cent on ore from the San Francisco deposit.
Based on a crush size of 80 per cent of the particles passing 1/4 inch on samples from the San Francisco deposit, the average gold extraction rate was higher at 77.1 per cent.
For ore samples from the La Chicharra deposit - located 1.5 km west of the San Francisco pit - the column testing results indicated an average gold extraction of 78.3 per cent and 80.9 per cent, based on a crush size of 80 per cent passing 3/8 inch and a crush size of 80 per cent passing 1/4 inch, respectively.
The miner, which is in commerical production at its San Francisco gold mine in Sonora, Mexico, said that no percolation issues were seen in the locked cycle tests.
Six composite samples were tested in the metallurgical study, five from the San Francisco deposit, and one from La Chicharra. They were tested at the Metcon Research lab in Tucscon, Arizona.
The San Francisco gold mine is a past-producing open pit, heap leach operation, that has a forecast production rate of around 130,000 ounces of gold per year.
Earlier this month, the precious metals producer saw another strong quarter as it tripled its earnings per share, with metal revenues rising 48 per cent.
For the three months that ended September 30, the Mexico-focused gold producer reported earnings of $13.1 million, or 9 cents per share, compared to $3.6 million, or 3 cents per share, a year ago.
Profit from operations at its San Francisco gold mine was $18.3 million, compared to $10.3 million during the same prior year period. Metal revenues rose 48 per cent to $41.7 million, as the miner sold significantly more gold and silver.
The Canadian company produced a record 25,153 ounces of gold, up 46 per cent from a year ago.