UC Resources Announces Significant Results at La Yesca
01 March 2013 - 11:30PM
Marketwired Canada
UC Resources Ltd. ("UC" or the "Company") (TSX VENTURE:UC) is pleased to
announce that it has successfully concluded physical testing over the past
number of weeks at its La Yesca facility in Mexico. The results of the testing
indicate that tailings already processed at La Yesca can be reprocessed by the
Company to achieve a reasonable recovery return for silver and gold. The results
from the test showed that approximately 75% of original recovery could be
achieved from the reprocessing of tailings previously processed. Other
associated costs of production such as cyanide usage and equipment usage are
lower on reprocessed tailings, so the Company believes the net result will be
that revenues will be closer to approximately 80% of normal, once these factors
are taken into account.
The significance of the testing is that the Company will now be able to proceed
to process all tailings accumulated in three separate tailings ponds at the
site. In order to accommodate this production, the Company has entered into an
agreement with Clifton Environmental Services Ltd for the development of a
larger tailings pond facility to accommodate the Company's production for the
next approximately five years of processing, reprocessing and virgin ore
extraction.
"We attribute the positive results of the La Yesca physical testing to the
recent improvements we've made to the machinery and personnel at the facility,
as well as the cost saving measures we have taken following our analysis of the
facility's operations," said Jim Voisin, President and COO of UC.
The Company plans to run a mix of newer tailings combined with older tailings to
maximize and extend production as much as possible at La Yesca. This does not
include the raw material the Company believes it will obtain through the narrow
mining of the XORA concession. The Company announced on December 2012 that it
had discovered a significant silver vein structure at XORA.
The Company will begin discussions with a Narrow Vein Mining Contractor firm for
the XORA concession. The Company plans to mine, deliver, crush and process this
raw material at the La Yesca mill.
The Company is also in negotiations with an off site location to acquire
additional higher grade feed to the La Yesca mill operation. The Company has had
an extensive testing period at La Yesca. It is also important to note that the
Company has not completed an independent feasibility study on the La Yesca
milling operation.
The Company is positioning itself now to take advantage of any possible Silver
and Gold price increases that may occur in 2013 forward.
Recently the Company contracted an industry specialist to assist the Company in
the development of practices, proper reporting and accounting procedures for the
Company as it relates to Commercial Production. It will be necessary to
accurately and readily report on Commercial Production at La Yesca to regulators
and other interested parties. The Company has not yet claimed Commercial
Production Status but it is necessary for these reporting functions and
procedures to be in place prior to that taking place.
Under IFRS accounting standards, commercial production is determined to have
begun when the following are true:
-- all major capital expenditures to bring the mine to the condition
necessary for it to be capable of operating in the manner intended by
management have been completed;
-- the completion of a reasonable period of testing of the plant and
equipment;
-- the ability to produce saleable product (e.g., the ability to produce
precipitate / concentrate within specifications);
-- the mill has reached a pre-determined percentage of design capacity;
-- mineral recoveries are at or near the expected production level; and,
-- the ability to sustain ongoing production.
The Company believes that it has demonstrated that it has achieved all of the
elements of commercial production except for the final element, "the ability to
sustain ongoing production."
In accordance with commercial production reporting requirements, the Company
will make any announcement regarding the move to Commercial Production
concurrently with the beginning of a Reporting Quarter.
On behalf of the Board of Directors,
Gary Monaghan, Chief Executive Officer
We seek safe harbour.
Investors or interested parties are invited to visit the UC Resources Website at
http://www.ucresources.net - where they can choose to join the opt-in e-mail
list to receive all future press releases and updates in real time.
This news release includes certain forward-looking statements or information.
Forward-looking statements in this release include that reprocessed tailings
will result in higher recovery returns for silver and gold at increases from
approximately 75 to 80% of normal, UC will proceed to process all tailings
accumulated in its three, separate tailings ponds, UC will process the described
mix of tailings to maximize and extend production at La Yesca, UC will obtain
new raw material through the narrow mining of the XORA concession, UC will begin
discussions with a Narrow Vein Mining Contractor firm for the XORA concession,
UC will mine, deliver, crush and process raw material from XORA at the La Yesca
mill and that UC will take advantage of any possible Silver and Gold price
increases that may occur in 2013 forward. Forward-looking statements in this
release include all statements other than those of historical fact, including,
statements relating to the potential mineralization and geological merits of the
La Yesca properties and other future plans, objectives or expectations of the
Company. Forward-looking statements involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and
actual results and future events could differ materially from those anticipated
in such statements. Important factors that could cause actual results to differ
materially from the Company's plans or expectations include risks relating to
the actual results of current exploration activities, fluctuating gold and
silver prices, the possibility of equipment breakdowns and delays, exploration
cost overruns,, the availability of capital and financing, general economic,
market or business conditions, regulatory changes, timeliness of government or
regulatory approvals and other risks detailed herein and from time to time in
the filings made by the Company with securities regulators. The Company
expressly disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future events
or otherwise except as otherwise required by applicable securities legislation.
FOR FURTHER INFORMATION PLEASE CONTACT:
UC Resources Ltd.
Gary Monaghan
Chief Executive Officer
monaghan@ucresources.net
www.ucresources.net
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