Excalibur Signs Letter of Intent for San Pedro
June 25 2014 - 2:21PM
Marketwired
Excalibur Signs Letter of Intent for San Pedro
TORONTO, ONTARIO--(Marketwired - Jun 25, 2014) - Excalibur
Resources Ltd. ("Excalibur" or the "Company')
(CSE:XBR)(OTCQX:EXCFF)(FRANKFURT:X9CN) is pleased to announce it
has signed a letter of intent with Carbocol Peru S.A.C.(Carbocol),
to acquire 100% of San Pedro, a 900 hectare gold concession held in
the state of Piura in northern Peru, on the border of Ecuador, for
1 million shares of Excalibur. German CastaƱo, President, Carbocol
Inc. and Legal Representative was recently appointed to Excalibur's
Board of Directors. San Pedro is located 17 kilometers northeast of
the town of Tambogrande which hosts one of the richest undeveloped
volcanogenic massive sulphide (VMS) deposits of Cu-Zn-Au-Ag in the
world. Currently, there are 25 informal miners legally registered
on this concession; however, 2 miners which have some equipment are
producing most of the gold ore of 100-200 tons per week, of which a
5% royalty in tons is provided to the concession owner. This rock
is sent to a local toll mill plant on a weekly basis for
processing, generating an average of US$450-US$500 per ton in value
and a weekly gross cash flow of approximately US$7,000-US$9,000
depending on local mining conditions. The goal is to increase the
production on this concession primarily by providing proper mining
equipment for an increased share of the ore produced, which has
been averaging .75 to .85 ounces per ton gold according to assays
taken at the plant. In due course, the intent is to ship this ore
to a new 100-120 TPD plant in the new 'mining park', a desert
region about 1.5 hours drive west of San Pedro just off the
Pan-American highway and very near the Port of Paita. The company
estimates there are over 4,000 tons of gold ore being processed per
week by the informal miners in this area.
Small scale, artisanal or informal mining is virtually
non-existent in North America, however, in South America, there are
many small but very rich deposits at surface that can be exploited
with less efficient techniques. It is important to note the huge
grade and value per ton difference between large gold mining open
pit operations which typically average less than 1 gram gold per
ton versus 10-31 g/t Au grades of veins mined by an estimated 1,000
informal miners in the state of Piura. By providing some technical
assistance, drills, compressors, trucks, etc there is the potential
to substantially increase productivity.
"It has been 3 years since gold and silver prices peaked in 2011
and the significant decline in price has negatively impacted gold
operators around the world and fundamentally changed the business
model for junior resource companies who are unable to raise capital
for drilling campaigns. Excalibur is an advocate of a traditional
but new self-sustaining business model operating in mining friendly
areas with significant undeveloped geology," commented Tim
Gallagher, Chairman and CEO of Excalibur.
Excalibur Resources Ltd. is a junior exploration mining
company focused on the discovery, development and mining of
economically viable precious metal mineral resources.
On behalf of the Board of Directors:
Tim Gallagher
Chairman & CEO
Neither the Canadian National Stock Exchange nor its
Regulation Services Provider accepts responsibility for the
adequacy or accuracy of this release.
Excalibur Resources
Ltd.416-925-0090info@excaliburresources.cawww.excaliburresources.ca