Farallon Reports First Quarter Production Results

VANCOUVER - Dick Whittington, President and CEO of Farallon Resources Ltd. reported the production results for the first quarter of 2009 at the G-9 Mine in Guerrero State, Mexico. The mine produced zinc, copper and lead concentrates containing 16.9 million pounds of zinc, 1.2 million pounds of copper, 0.3 million pounds of lead, 229,500 ounces of silver and 3,300 ounces of gold.
The Company remains on track to achieve its key production targets and goals for the balance of the year. Key highlights from operating results for the First Quarter of 2009 at the G-9 Mine are as follows:
¥ Commenced mining activity in the high-grade Southeast zone and ramped-up the mine and mill operations to design throughput rates of 1,500 tpd. As a result of access to the main mining area, a step-change improvement was made in mine and mill production during the month of March and commercial production was declared effective, April 1, 2009.
¥ Produced 14,800 tonnes of zinc concentrate, 3,000 tonnes of copper concentrate and 650 tonnes of lead concentrate. Concentrates are trucked to the Port of Manzanillo and the Company receives advance payments from Trafigura totaling 90% of the value on a regular basis.
¥ Completed concentrate shipments of approximately 10,800 tonnes of zinc concentrate, 2,100 tonnes of copper concentrate and 1,300 tonnes of lead concentrate. The Company received provisional payments for 100% of the value of the concentrates from these shipments which were made in vessels loaded at the Port of Manzanillo. The Company also initiated silver sales to Silver Wheaton, totaling approximately 57,000 ounces.
During the period, the mine accessed and began mining mineralized material from the high-grade Southeast zone. As a result, mine grades improved consistently over the quarter and averaged 11.9% Zn, 1.7% Cu, 1.2% Pb and 190 g/t Ag during the month of March with 43,000 tonnes of mineralized material mined. Further development activity continues in the Southeast zone to open more mining faces for the second quarter. It is anticipated that mine grades will average 11.5% Zn, 1.7% Cu and 1.1% Pb during the second quarter of 2009 as production continues from the Southeast zone.
Mill commissioning took place throughout the period with the mill ramping up to full commercial production on April 1, 2009.
The company’s address is 428- 800 West Pender Street, Vancouver BC, V6C 2V6.