(all financial figures in US$)
TORONTO
,
Nov. 16
/CNW/ - Zaruma Resources Inc., (TSXV-ZMR.H), (the "Company") today reported that the Consolidated Financial Statements and Management's Discussion and Analysis report for the nine and three months ended
September 30, 2009
is available on SEDAR and is posted on the Company's website, www.zaruma.com.
Activity on the
San Antonio
, Sonora,
Mexico
site during the three months was limited to maintaining security and the protection of the nearly completed infrastructure of the Luz del Cobre Copper Project. The heavy rain season at
San Antonio
has ended, and steps taken to mitigate damage proved to be successful, with the internal roads and the leach pad requiring only minor remedial work.
A formal demand for payment of the
$25 million
owing to a subsidiary company of Glencore International AG for the funding of Luz del Cobre was received, and the Company filed motions with the court in
Mexico
which had the effect of suspending proceedings.
With a currently projected cash cost of producing copper of US$1.15 per pound, and the current market price of copper of US$2.95, the Luz del Cobre Copper Project looks very attractive. The project could be producing copper at a planned rate of 15 million pounds per year for six years within six months of completing new financing arrangements. In addition to resolving the secured debt issue, an additional
$15 million
will be required to complete the construction and development in order to start production.
As reported in the news release on
June 16, 2009
, the Company also has 2.2 million tonnes of 1.04 g/t Au open pit, heap leachable Measured and Indicated oxide gold resources for 74,000 ounces and an Inferred resource of 0.9 million tonnes of 0.86 g/t Au for 24,000 ounces, known as the "Sapuchi Gold Project" on the same property as Luz del Cobre. (Note: mineral resources that are not mineral reserves do not have demonstrated economic viability.) The resource is open ended in three directions, and at a capital cost of approximately US$9 million, could be in production at the rate of 25,000 ounces per year within a matter of six months from completing a minor amount of drilling and completing the feasibility study referred to in the
June 15, 2009
Technical Report, which estimated the cash operating cost to be
$440
per ounce, based on an estimated waste to ore ratio that will very likely drop with further drilling.
The Company has continued its negotiations on the financing of Luz del Cobre and the Sapuchi Gold Project, with the expectation that an agreement can be reached on the terms and conditions in the near future.
The net loss for the nine months was
$1,733,000
, (1.5 cents per share), including
$1,137,000
in costs pertaining to the mining projects, compared to a net loss of
$1,730,000
, (1.5 cents per share) for the same period in 2008. For the three months, the net loss was
$551,000
compared to
$681,000
for the three months to
September 30, 2008
.
This News Release contains forward-looking statements which are typically preceded by, followed by or including the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions, including securing additional funding to continue its development programs.
Zaruma Resources Inc. is a pre-production stage company listed on the TSX-V NEX Board (symbol ZMR.H) and the
Frankfurt
Stock Exchange (symbol: ZMR). Common shares currently outstanding: 117,608,747.
Neither TSXVenture 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.
For further information: Zaruma Resources Inc., 20 Toronto Street, 12th Floor, Toronto, ON, M5C 2B8, Canada, Fax: (416) 367-3638, [email protected], www.zaruma.com; Dr. Thomas Utter, President and CEO, Tel: +1 521 662 210 5650, [email protected]; Frank van de Water, CFO and Secretary, Tel.: (416) 869-0772, [email protected]
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