Tuesday, February 23, 2010

Tara Minerals To Commence Production At San Felipe Vein

Tara Minerals has announced that is to advance the San Felipe gold and silver vein into production. The company has commenced a mine development plan and is enhancing the current mill design to incorporate the production of Gold and Silver concentrates. To date approximately 800 tonnes of material has been mined from San Felipe.

San Felipe is a Gold and Silver quartz vein located 1.5 km southeast of the Don Roman mine and mill near the town of Choix in Sinaloa state, Mexico. Recent channel samples returned an average grade of 10.06 grams per tonne Gold and 149.85 grams per tonne Silver.

The Don Roman mill is currently processing silver, zinc, and lead at a rate of 240 tonnes per day, which will be expanded to 360 tonnes per day by commissioning a third circuit. Further expansion will give a total plant production capacity of 660 tonnes per day. The expansion projects are anticipated to begin on 1 April this year and will be completed within nine months. The processing and sale of silver, zinc and lead concentrate will continue during the expansion work.

Tara Minerals President Francis Biscan Jr said "With the strong economics of the San Felipe Gold and Silver vein and the strategic location of this structure to our existing plant, we expect to achieve an expeditious return on investment. With the development of San Felipe, we will add to the diversity of metals produced, add substantial cash flow beyond our original expectations, and give our shareholders leverage to the Gold price."

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