January 9, 2018 (Source) — Para Resources Inc. (TSXV: PBR) (WKN: A14YF1) (OTC Pink: PRSRF) (the “Company” or “Para“) is pleased to announce that it has received an evaluation report from its consultant RPM Global (“RPM”) on the condition of the Gold Road Mill and an estimate of the capital necessary to begin processing mineralized material once the anticipated operation of the mine begins. In addition to the mill evaluation, RPM also reviewed the project infrastructure to confirm it was sufficient to support the successful operation of the mill. Below is a summary of the evaluation:
- RPM found the mill to be in excellent condition
- The infrastructure is in good condition and is currently functional with no need for repair or upgrading
- The capital needed to return to production, including the first supply of chemicals and grinding media, is estimated to be $500,000.
- Based on historical production data the expected gold recovery is 95%
- The mill is designed for and capable of a production rate of 500 TPD
- Gold production through the mill at full capacity should be 40,000 ounces per year
- Mill operating costs are estimated to be $27.50 /ton
- Facility G&A expenses are estimated at $15.00 per Ton at full operation
Ian Harris, Para’s President states, “This evaluation is an important step in preparing the Gold Road Mine for operations. The report by RPM validates the work and analysis we did in due diligence and will be an integral part of the PEA expected to be completed in Q1 2018. Using the average historical grade of 7.5 gpt, as detailed in the 2017 NI 43-101 Technical Report on Gold Road Mine, prepared by World Industrial Minerals LLC, our expected milling cost per recovered ounce of gold would be $132.00 per ounce. This estimate will be updated in the upcoming NI 43-101 Resource Estimate and PEA being prepared by RPM Global”. The Company is not treating the historical resource as a current mineral resource. Please refer to the Company’s 2017 Technical Report on the Gold Road Mine filed on SEDAR for additional details.
The full report: Process Site Visit Report — Gold Road Mine, Arizona, will be posted to SEDAR.
The report was prepared under the direction of Mr. Richard Addison, Principal Process Engineer with RPM Global. Mr. Addison is a Qualified Person under NI 43-101 and has reviewed and approved the technical information contained in this news release.
In addition, the Company previously announced that it has arranged a non-brokered private placement (the “Private Placement“) for total gross proceeds of up to $1,000,000. The Private Placement will consist of up to 5,000,000 units at a price of $0.20 per unit (each a “Unit“). Each Unit will be comprised of one common share of the Company and one-half common share purchase warrant (each whole such warrant a “Warrant“). Each Warrant will entitle the holder to acquire one common share of the Company for a period of 18 months at a price of $0.30, subject to an accelerated expiry if the closing trading price of the Company’s shares is greater than $0.40 per share for a period of 10 consecutive trading days (the “Acceleration Event“). The Company will give notice to the holders of the Acceleration Event and the warrants will expire 8 days thereafter.
ABOUT PARA RESOURCES:
Para is a junior producing gold mining company. Para owns approximately 80% of the El Limon project, in Colombia, which in addition to its current underground operation is purchasing mineralized rock mined by small artisanal miners working on the Company’s property. The El Limon and OTU properties also have exploration and development upside. The Company also owns 88% of the Gold Road Mine in the Oatman District of Arizona. The Company has hired RPM Global as consulting engineers in order to produce a NI 43-101 Technical Report which it expects will establish a current Mineral Resource estimate and anticipates that it will publish a NI 43-101 PEA thereafter. Para will continue to take advantage of current market conditions to acquire and develop additional highly economic, near-term production assets that have strong exploration and development upside.
On behalf of the Board of Directors
“C. Geoffrey Hampson”
C. Geoffrey Hampson, Chairman, Chief Executive Officer and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company‘s properties; success of exploration, development and mill processing activities; and the anticipated results to be achieved from operation of the Gold Road Mine. The Company also cautions that there is no assurance that past production or past recovery rates at Gold Road or production at nearby mines is indicative that the Company will achieve similar results. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to future mill operation and its estimated costs. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materiallydifferent from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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