PAN AMERICAN GOLDFIELDS LTD CIENEGUITA GOLD-SILVER PROJECT MILL COMMISSIONING
AND OPERATIONAL INTEGRATION WITH EXISTING FACILITIES COMPLETED
- Average Head Grade 1.25 grams Per Tonne Gold And 110 Grams Per Tonne Silver, Gold & Silver Recoveries in excess of 95%, Current Continuous Production at 500 Tonnes Per Day, On track to Achieve Planned Continuous Production of between 700 and 800 tonnes per day.
BROOMFIELD, CO, Nov. 9 /CNW/ - Further to its press release of October 11, 2010, Pan American Goldfields Ltd (OTCBB:"MXOM") (the "Company") is pleased to announce that the company's partner Minera Rio Tinto (MRT) continues to increase production and optimize operations at the Cieneguita project mill in Chihuahua, Mexico with a goal of reaching design capacity by year end These improvements have increased the daily production rate of ore through the mill as well as the recovery of gold, silver and other metals from the processing operations underway at the mill.
Both the ball mill and the new flotation cells have successfully undergone commissioning and start-up and full operational integration with the existing mill facilities. Successful operation at a rate of 400 tonnes per day began October 1st increasing, beginning October 16th to a continuous rate of 500 tonnes per day, with one 10 hour shut down due to a power outage caused by high winds. Recoveries of gold and silver averages in excess of 95% of the mined material, which has had an average head grade of 1.25 grams per tonne gold and 110 grams per tonne silver over the same period. The mill is expected to exit November at a continuous rate of 600 tonnes per day. Full commissioning is now being finalized to reach the planned operating level of between 700 and 800 tonnes per day with an appropriate grind size to continue to achieve the maximum recovery rate of gold, silver and other metals consistent with the mineralogy of the ore and the standards in the industry.
Placing the ball mill and the new flotation cells into operation marks a significant turning point in the Cienegita operations." Said Miguel Di Nanno, Pan American's new president. "Based on these improvements and guidance by our partner MRT we expect the performance of the operations to be greatly enhanced and the results to be felt in our bottom line in the very near future."
About Cieneguita
The Cieneguita mill makes a bulk sulfide flotation concentrate that is sent to the MRT owned mill at Choix where it is then reground and separate lead and zinc concentrates produced. These concentrates are then shipped to the port at Manzanillo where they are sold under contract to the trading company Trafigura. Most of the gold and silver report to the lead concentrate. The anticipated increase in the production capacity at Cieneguita will not require any modifications to the plant at Choix. Over the last quarter (July-September) during the start-up phase of operations, approximately 30,000 tonnes of material was mined from the pit and 2,000 tonnes of bulk concentrate shipped to Choix with the following average grades as follows:
| Au g/t | Ag g/t | Cu% | Pb% | Zn% | |
| Mined head from pit | 1.20 | 90 | 0.04 | 0.35 | 0.65 |
| Bulk concentrate | 12.0 | 900 | 0.40 | 3.5 | 4.0 |
Pan American currently has a joint venture agreement with MRT under which MRT can earn 60% of the project by successfully initiating production on a small scale, followed by the funding of an additional $4 million toward the completion of a bankable feasibility study. With the completion of the construction start-up phase at Cieneguita, the focus will now be the acceleration of the feasibility study. This study will evaluate a full-scale operation which will target a production rate of about 5,000 tonnes of material processed per day along with saleable metal production directly from the Cieneguita site.
The technical information in this release has been prepared by Gary A. Parkison, CPG, a Director of the Company and a Qualified Person as defined by NI43-101.
About Pan American Goldfields/MexoroMinerals
Pan American Goldfields is a Chihuahua, Mexico based precious metal producer and exploration company. It is a specialist in exploration, mine development and production in Mexico's booming Sierra Madre Gold-Silver Belt. The company's most advanced project is its now producing Cieneguita Gold Mine where a feasibility study to significantly increase the mine's already growing production profile is underway.
On behalf of the Board of Directors,
Mario Ayub, Chairman
Safe Harbor Disclosure
The information in this press release contains forward-looking statements regarding future events or the future financial performance of the Company. Please note that any statements that may be considered forward-looking are based on projections; that any projections involve judgment, and that individual judgments may vary. Moreover, these projections are based only on limited information available to us now, which is subject to change. Although those projections and the factors influencing them will likely change, we are under no obligation to inform you if they do. Actual results may differ substantially from any such forward looking statements as a result of various factors, many of which are beyond our control, including, among others, the timing and outcome of our feasibility study on our Cieneguita Project; the costs and results of our initial production activities on our Cieneguita Project; the future financial and operating performances of our projects; the timing and amount of funds received from the sale of our Guazapares Project the estimation of mineral resources and the realization of mineral reserves, if any, on our existing and any future projects; the timing of exploration, development, and production activities and estimated future production, if any; estimates related to costs of production, capital, operating and exploration expenditures; requirements for additional capital and our ability to raise additional capital on a timely basis and on acceptable terms; government regulation of mining operations, environmental risks, reclamation and rehabilitation expenses; title disputes or claims against our existing and any future projects; and the future price of gold, silver, or other minerals. These and other factors can be found in our filings with the SEC. The Company undertakes no obligation to release publicly the results of any revision to these forward-looking statements to reflect events or circumstances following the date of this release.
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