Vancouver, British Columbia--(Newsfile Corp. - February 5, 2019) - Para Resources Inc. (TSXV: PBR) (WKN: A14YF1) (OTC Pink: PRSRF) (the "Company" or "Para") is pleased to announce that underground mining has commenced at the Company's Gold Road Mine in Oatman, Arizona. The initial plant production target is 250 TPD, ramping up to full capacity of 500 TPD in Q2 2019. Mineralized rock is being stockpiled on the patio at the mill site. The mill will begin operations by the middle of February and first pour is expected before the end of the month.
Ian Harris, the Company's President states, "Mining at the 4158 stope, the first operational production face, is a significant step forward for Gold Road. With the plant preparing for restart, our contractor ramping up operations and a world-class team led by Gold Road General Manager, Ken Kins, we look forward to the first production of doré and to incrementally increasing production. Achieving the full production capacity of the Gold Road Mine is fundamental to our strategy of unlocking the full potential of the entire Oatman district."
In addition, planning and geological work has begun to design the anticipated drilling program on the adjacent TR-UE vein which is expected to begin in 2019. The TR-UE vein is 1.5 kilometers away from the Gold Road mill, over a paved road. Over 1.3 million ounces of gold were produced from the TR-UE vein from 1890 - 1942 when mining ceased due to the USA entering the second World War.
ABOUT PARA RESOURCES:
Para Resources Inc. ("Para") is a junior gold mining and exploration company. The Company owns two projects in that couple areas of highly prospective exploration potential with an existing mining and milling operation that can generate cash flow to support an exploration program. Purchasing existing and fully permitted mines and facilities dramatically reduces the exploration risk as the small mining operations are profitable and provide excellent returns as a stand-alone entity. This is a unique approach to developing "world class" assets. In addition, Para is unique in that the Insiders have invested more than $20 million of their own capital and own approximately 70% of the equity.
Para's management team is seasoned and proven, having discovered, built, managed and sold several different mines over the last 40 years.
The Company has two major projects: The Gold Road Mine in Arizona, USA and the El Limon Mine in Zaragoza, Colombia.
The Gold Road Mine, Arizona, USA
In August 2017, Para, through its 88% owned subsidiary Gold Road Mining Corp., acquired the 500 TPD CIL/CIP Gold Road Mine and Mill, including patented claims and a mill and processing facility, located in the historic Oatman Mining District in Northwestern Arizona.
The Oatman District is the largest primary gold producing district in Arizona with a historical gold production including Gold Road of more than 2.1 million ounces. The vast majority of the production has come from two sub-parallel vein systems, the Gold Road system and the Tom Reed-United Eastern (Tr-Ue vein) system. In addition to these two systems there is a third vein system, the Pioneer-Midnight system, which is southwest of the Tr-Ue system for which production records are mostly unknown. The distance between these veins is less than 1 kilometer. Para is the first company to have secured the rights to all of the patented and unpatented claims along the Gold Road and the Tr-Ue veins which includes the sites of over 7 historical underground mines. These mines mostly ceased production in 1942 as a result of the US war effort. It is important to note that the mines stopped production while still mining high grade ore. Para believes that there is significant potential to re-open these mines and to process the mineralized material at Gold Road which is approximately 1 km away on a paved road.
In February 2018, Para published a NI 43-101 Preliminary Economic Assessment on the Gold Road Mine and in April 2018, a NI 43-101 Technical Report on Report on the Oatman Gold Mining District for the Tr-Ue vein. Both reports recommend multi-year exploration plans that together target and additional 1,600,000 to 2,150,000 ounces for an estimated cost of US$14.2 million.
El Limon Mine in Zaragoza Colombia
Para owns approximately 86% of the El Limon project, in Colombia, which in addition to its current underground operation is purchasing mineralized rock mined by formalized small artisanal miners working on the Company's property. The El Limon and OTU properties also have exploration and development upside. Para completely re-built and re-habilitated the El Limon mill and increased capacity from 75 TPD to 225 TPD. That re-habilitation and upgrade has now been completed and commissioned. Mineralized rock from the El Limon underground and from the formalized small miners is has begun to flow with full capacity anticipated by mid-2019.
This press release contains forward-looking information under Canadian securities legislation. Forward-looking information. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Para to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in its public documents filed on SEDAR from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Para has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Para does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Para's Readers should also review the risks and uncertainties sections of Para's annual and interim MD&As.
On behalf of the Board of Directors
"C. Geoffrey Hampson"
C. Geoffrey Hampson, Chairman, Chief Executive Officer and Director
For further information, please contact Andrea Laird, telephone: +1-604-259-0302
Neither the TSX Venture 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.