VANCOUVER – Timmins Gold Corp. (TSX:TMM) says its revised plan for the San Francisco gold mine in Mexico calls for a much larger crushing system to take advantage of the project’s increased reserves and current high gold prices.
Based on processing 32,000 tonnes of ore per day and gold at US$ 1,200 an ounce, the Vancouver-based company estimates it can produce 128,062 ounces in 2012 and generate about $ 153 million in gross revenue.
The previous mine plan filed in November 2010 called for the installation of a crushing system capable of processing 18,000 tonnes per day but since then gold prices have soared as investors seek alternatives to volatile currencies amid uncertainty caused by the eurozone’s debt crisis.
Timmins said Wednesday that the higher gold price, as well as a 104 per cent increase in the estimated mineral reserves at the mine, will make the larger throughput economically feasible.
A technical report that complies with Canadian regulatory standards was prepared for the company by Micon International of Toronto.
“The technical report continues to confirm the robust economics of the San Francisco mine,” Timmins Gold president Arturo Bonillas said in a statement.
He added that the Nov. 1, 2011, technical report incorporates results from drilling up to June 30 and another report planned for the first quarter of 2012 will include results from drilling after July 1.
The company says, based on gold at US$ 1,100 an ounce, the San Francisco pit has an estimated 1.2 million ounces of gold — including 831,000 classified as proven and 383,000 classified as probable.
In addition, the Chicharra pit has an estimated 116,000 ounces of proven and probable reserves.
On the Toronto Stock Exchange, Timmins shares were down three cents at $ 2.10 Wednesday morning.
Local news from metronews.ca/vancouver
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