Timmins Gold Corp. (TSX: TMM; NYSE MKT: TGD) says expected operations at the San Francisco mine in the Mexican state of Sonora have been extended into 2023 as a result of a National Instrument 43-101 technical report. The company anticipates 2016 production between 90,000 and 100,000 gold ounces at cash costs of $750 to $800 per gold ounce and total capital expenditures of $4 million, then 2017 production between 65,000 and 70,000 ounces at cash costs of $900 to $950 per ounce and total capital expenditures of $4 million. The company lists updated reserves, after mining recovery and dilution, of 574,000 gold ounces grading 0.56 grams per tonne at $1,250 per ounce; additionally, stockpiled ore totals 61,000 ounces grading 0.26 g/t. Updated measured and indicated resources are listed at 1 million gold ounces grading 0.58 g/t at $1,350 per gold ounce. Timmins Gold President Arturo Bonillas says continued operations at San Francisco “will generate significant free cash flow and offers the company continued exposure to the rising gold-price environment. Over the course of the past year, we made significant reductions in costs and increased operating efficiencies, which contribute greatly to the estimated profitability of the new life of mine plan. Additionally, the low capital requirements throughout the mine life result in very attractive all-in costs.”
By Allen Sykora of Kitco News; asykora@kitco.com
First Mining Sells Three Mexican Assets To BRS Ventures
Tuesday August 23, 2016 09:11
First Mining Finance Corp. (TSXV: FF) says it has signed an agreement with BRS Ventures Ltd. to sell three Mexican assets. First Mining will sell all outstanding shares of Minera Terra Plata S.A. de C.V., a subsidiary of First Mining, which owns the Peñasco Quemado, La Frazada and Pluton properties in Mexico, with First Mining to receive 6 million shares of BRS on a post-split basis. After closing, First Mining will own 7.2% of shares of BRS. First Mining also reports that upon completion of sale, the company will retain a 2.5% net-smelter-return royalty for each property and 1.5% may be purchased by BRS for $1 million. Meanwhile, BRS is planning to change its name to Silver One Resources Inc. The transaction is subject to approval by the TSX Venture Exchange. Keith Neumeyer, chairman of First Mining, says the transaction “helps to unlock the value” of three underexplored Mexican silver assets. “This transaction follows our mineral bank business model of monetizing assets by entering into agreements with third parties that move our projects forward while First Mining retains residual interests in the properties,” he adds.
By Allen Sykora of Kitco News; asykora@kitco.com
