Plexmar Resources Inc.: Joint Venture for Malin Plant
12/16/2009 11:35:58 AM - Market Wire
QUEBEC CITY, QUEBEC, Dec 16, 2009 (MARKETWIRE via COMTEX News Network) --
Plexmar Resources Inc. (TSX VENTURE: PLE) Plexmar's is pleased to report that it has signed, through one of its subsidiaries, a joint venture to operate the Malin plant with J&M Business, an important Peruvian producer and exporter of precious and base metals with average annual sales of $US 48 million.
The joint venture will produce copper, silver and gold from properties owned by J&M Business and Plexmar using the Malin plant. The plant will be rehabilitated and a carbon in pulp circuit will be installed to process gold ores. The copper line will have an initial rate of 100 tons per day. According to J&M, the average copper grade will be 5% and at a price of US$ 3.00/lb with a production of 2,500 tons per month, projected net profits before taxes amount to US $4.8 M annually.
The gold circuit will have an initial installed capacity of 100 tons per day and will be increased to 200 tons per day after 6 months of operation. Projected profits from the gold circuit are US $7.2 M annually with gold at US $ 1,000 per ounce.
The Joint Venture profits will be split 50-50 between Plexmar and J&M.
J&M will refurbish and put the plant into production. The rehabilitation process has already started and the plant should be operational in March 2010 according to the schedule presented by J&M. When in operation, the Malin plant will be able to process high grade copper, silver and gold material being currently mined in the northern part of Peru, from the La Libertad to the Piura department.
The Malin plant is located 110 kms northeast of the city of Trujillo in the La Libertad department. It is a flotation plant with an installed capacity of approx. 100 tons per day. Plexmar purchased the plant in 2003 when the Cascajal project located nearby was being drilled. Plexmar owns 6 concessions covering more than 2,500 hectares in the Malin plant area.
This press release was prepared by Guy Bedard, P.Eng., Qualified Person as defined under NI 43-101 guidelines.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
168 M shares outstanding
Contacts: Plexmar Resources Inc. Guy Bedard President 418-658-6776 ext.107
SOURCE: Plexmar Resources Inc.
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