Plexmar may resume Bolsa del Diablo exploration in May
2009-05-04 10:09 ET - News Release
Mr. Guy Bedard reports
PLEXMAR RESOURCES INC.: PROJECTS UPDATE
Plexmar Resources Inc. is providing information on Ucucha's progress in the Bolsa del Diablo project area. Plexmar has been notified by Ucucha that exploration can resume in May. Plexmar has its technical team ready for an imminent return on the project. Ucucha will notify Plexmar as soon as the communities' permission to bring equipment, such as the geophysical contractor's equipment and small diamond drilling rigs, is obtained. However, geologists will be back in the field this month. They will pursue the continuing sampling program and get ready for the continuation of the ground geophysical program.
Ucucha reported to Plexmar that, since January, a lot of progress was made toward the commercialization of ore and obtaining the acceptation to start the drilling program. Ucucha has purchased a 300-hectare piece of land, north of Piura, to accommodate its future processing plant. The land was chosen for its proximity to the gold producing areas and accommodations, while located in a desert environment away from agricultural areas. In order to process the ore until the local plant is ready, an increase in milling capacity was required at Ucucha's plant located near Nazca, in southern Peru. Capacity was increased from 150 tons per day to approximately 400 tons per day, two 20-foot-diameter leaching tanks were built, and a ball mill circuit was installed.
Following plant modifications, Ucucha reported the purchases of gold-bearing material from Plexmar's and adjoining concessions at a steadier rate. In the past two weeks, over 125 tons of waste material was bought from miner stockpiles grading 0.8 ounces per ton. Over 75 tons of hardrock material were also bought, with an average of 4.5 ounces of gold per ton. In the coming weeks, gold-bearing material purchases will ramp up to an average of 70 tons per day.
On the contractual side, Ucucha remains within the 90-day period imposed by the contracts (see Jan. 16, 2009, news release in Stockwatch). The days are working days, and the 90th working day falls May 19, 2009. Also, under the Peruvian mining law, mining contracts, such as the ones between Ucucha and Plexmar's subsidiary, need to be registered in the national public registry, and with the Ministry of Mines, before having full legal force. Due to extended delays in the legal system, those contracts have been fully registered and in full legal force only since this week. Notwithstanding this fact, Ucucha has made significant progress toward fulfilling its obligations.
Pictures of Ucucha's plant modifications have been posted on the Plexmar website.
In Ecuador, Plexmar is in steady contact with representatives from the Ecuador Ministry of Mines. Following the passing of the new law's regulations in the coming months, management expects to have better clarity on the status and future of its concessions. The company's activities have been limited to administrative and legal matters due to the mining mandate issued by the Ecuador Constituent Assembly on April 18, 2008, which, among other provisions, provided for the suspension of exploration activities in Ecuador for a period of 180 days. Ecuador recently passed a new mines law, which replaces the mining mandate, and is working on developing regulations, and finalizing terms and conditions of future mining operations. The company looks forward to working with government officials to this end.
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