Operational Update on the G-9 Mine
VANCOUVER, BC - Dick Whittington, President and CEO of Farallon Resources Ltd. reported operational update on the Company's G-9 mine at the Campo Morado polymetallic (zinc, copper, lead, silver, gold) property in Guerrero State, Mexico. The commissioning process advanced substantially during the fourth quarter of 2008, and the mine and mill are still targeting full design production capacity in January 2009.
As previously announced, all major construction activities on site were essentially complete at the end of October 2008. Since that time, Farallon has continued with its "Parallel Track" approach, completing "operational" construction of the mill, developing underground access to the high grade Southeast zone, opening stopes for production and drilling underground delineation holes concurrently with mine production and mill commissioning.
In general, the Company's initial production targets have been met. Commissioning of the mill continues. The mill has been producing zinc, copper and lead concentrates which are being trucked to the port of Manzanillo. The Company has been receiving advance payments for the concentrates from Trafigura Beheer BV Amsterdam under existing off-take agreements on a regular basis. The Company anticipates that the first shipments of concentrates, totalling some 6,500 tonnes, will be shipped in early February. To date, no major obstacles have developed that would cause the Company to materially adjust its production targets and goals, although the recovery of copper in the copper concentrates has been disappointing to date.
The mine has met the initial months projections in the 20 month mine plan announced in November 2008. Main access development has been completed and the Company is now starting to mine in the Southeast zone. Concurrently, sufficient working faces have been opened to begin to deliver design tonnage of 1,500 tonnes per day to the mill. Meanwhile, underground delineation drilling has been focused on confirming and adding resources to the areas in the North zone where mining is also underway.
The mill has performed well during the commissioning phase and has operated for extended periods at design throughput rates. Metallurgy continues to improve as steady-state operations are approached and zinc, copper and lead concentrates are all now meeting, or very close to meeting, contract specifications. Metal recoveries are now a key focus for improved performance. Full design production rates were still expected to be achieved by the end of January.
Over the past quarter, the downturn in metal prices has necessitated continued management of the costs associated with bringing the G-9 mine and mill into full production. Concerted efforts have been made by the Company to reduce and contain costs in all areas including freezing of all salaries, a general hiring freeze, some staff lay-offs, and the renegotiation of supply contracts. The primary objective during these volatile times is to optimize operations, maximize cash flow and conserve cash.
The companyÕs address is 428- 800 West Pender Street, Vancouver BC V6C 2V6, 604-638-2050.
VANCOUVER, BC - Dick Whittington, President and CEO of Farallon Resources Ltd. reported operational update on the Company's G-9 mine at the Campo Morado polymetallic (zinc, copper, lead, silver, gold) property in Guerrero State, Mexico. The commissioning process advanced substantially during the fourth quarter of 2008, and the mine and mill are still targeting full design production capacity in January 2009.
As previously announced, all major construction activities on site were essentially complete at the end of October 2008. Since that time, Farallon has continued with its "Parallel Track" approach, completing "operational" construction of the mill, developing underground access to the high grade Southeast zone, opening stopes for production and drilling underground delineation holes concurrently with mine production and mill commissioning.
In general, the Company's initial production targets have been met. Commissioning of the mill continues. The mill has been producing zinc, copper and lead concentrates which are being trucked to the port of Manzanillo. The Company has been receiving advance payments for the concentrates from Trafigura Beheer BV Amsterdam under existing off-take agreements on a regular basis. The Company anticipates that the first shipments of concentrates, totalling some 6,500 tonnes, will be shipped in early February. To date, no major obstacles have developed that would cause the Company to materially adjust its production targets and goals, although the recovery of copper in the copper concentrates has been disappointing to date.
The mine has met the initial months projections in the 20 month mine plan announced in November 2008. Main access development has been completed and the Company is now starting to mine in the Southeast zone. Concurrently, sufficient working faces have been opened to begin to deliver design tonnage of 1,500 tonnes per day to the mill. Meanwhile, underground delineation drilling has been focused on confirming and adding resources to the areas in the North zone where mining is also underway.
The mill has performed well during the commissioning phase and has operated for extended periods at design throughput rates. Metallurgy continues to improve as steady-state operations are approached and zinc, copper and lead concentrates are all now meeting, or very close to meeting, contract specifications. Metal recoveries are now a key focus for improved performance. Full design production rates were still expected to be achieved by the end of January.
Over the past quarter, the downturn in metal prices has necessitated continued management of the costs associated with bringing the G-9 mine and mill into full production. Concerted efforts have been made by the Company to reduce and contain costs in all areas including freezing of all salaries, a general hiring freeze, some staff lay-offs, and the renegotiation of supply contracts. The primary objective during these volatile times is to optimize operations, maximize cash flow and conserve cash.
The companyÕs address is 428- 800 West Pender Street, Vancouver BC V6C 2V6, 604-638-2050.