Pan American Goldfields Reports Completion of Definitive Agreement for Restructure of Cieneguita JV & Additional Production Increase at Cieneguita Ag & Au Project

Pan American Goldfields (OTCQB:MXOM) reported that is has executed the definitive agreement with Minero Rio Tinto (MRT), a private Mexican company, for the restructure of its Cieneguita JV and significant increase in gold and silver production at the Cieneguita project.

 

The press release is quoted as saying:

A bulk sulfide concentrate is currently produced at the pilot operation at the Cieneguita project which is shipped for further processing to MRT’s mill at Choix, Mexico, where a lead concentrate containing the gold and silver is produced. This concentrate is shipped to the port of Manzanillo, Mexico where it is sold under contract to TrafiguraBeheer BV, a leading concentrate purchaser. Production highlights for August and the first part of September include the following:

• production reached design capacity of 500 tons per day in August and has remained stable at that level;
• August production totaled 544.2 oz gold and 36,304 oz silver
• 11,915 metric tonnes were processed in the first 24 days of September;
• average recoveries were 86 – 89% for gold and 90-91% for silver (from flotation – bulk concentrate);
• 514.65 oz gold and 29,151 oz silver were produced in the first 24 days of September.

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