Post by Zoinkers on Jul 12, 2006 19:29:52 GMT -5
Mon Jun 19, 2006
Morgain Minerals - Castillo Gold Project Update
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Vancouver, BC, June 19, 2006 - Morgain Minerals Inc. ("Morgain") (TSX-V: MGM) is pleased to provide an update on its 100% owned Castillo Gold Project ("the Project") located in the State of Durango, Mexico.
Mining
Reverse Circulation (RC) infill drilling on approximately 1,000,000 tonnes of ore is complete. All cuttings have been sampled and assayed. This information is being compiled and will be used to generate a detailed production schedule for the first year of commercial production. Internal studies have concluded that 8,000 tonnes per day (ore plus waste) is an optimum start-up rate.
To minimize start-up capital costs, Morgain will utilize contract mining for mine start-up. Five mining contractors are presently tendering bids for contract mining operations. Morgain expects to select the successful contractor within the Third Quarter of 2006.
Metallurgy
Testwork by Kappes, Cassiday & Associates of Reno, Nevada is nearing completion, and has demonstrated gold recovery approaching 70% by crushing the ore to minus ½ inch. This confirms the conclusion of METCON Research of Tucson, Arizona, who noted in its March 9, 2006 report that "Heap leaching of material at a minus ¾ inch crush size will enhance recovery.".
As previously reported (see March 8, 2006 Press Release), two trial heaps with a total of 27,000 tonnes were leached. Results indicated favourable reagent costs, rapid leach kinetics, and negligible levels of deleterious impurities in leach solutions.
Morgain is now commencing detailed engineering for heap-leach pad, ponds and recovery plant. This is expected to be completed by the end of Third Quarter of 2006.
Permitting
The Project is currently permitted for a 100,000 tonne Test Program. Morgain has initiated life-ofmine environmental permitting, and anticipates receiving its Environmental Permit by the end of the Third Quarter of 2006.
Morgain is in possession of an Explosives Permit for the Project and is now seeking an amendment to enable on-site storage for commercial operations.
Construction
Construction of Morgain's heap-leach pad, ponds and recovery plant, as well as capital waste stripping, is scheduled to commence as soon as Morgain receives its Environmental Permit.
About Morgain Minerals Inc.
Morgain Minerals is a resource exploration company with a number of precious and base metal properties in Mexico. Its corporate strategy is to acquire properties with known resources that can be further developed to production status. Visit our website at www.morgainminerals.com for the latest corporate information.
For further information, please contact:
Chester F. Millar - Chairman and President
Telephone: 604-643-1727
Facsimile: 604-643-1726
morgain@telus.net
www.morgainminerals.com
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.
Morgain Minerals - Castillo Gold Project Update
--------------------------------------------------------------------------------
Vancouver, BC, June 19, 2006 - Morgain Minerals Inc. ("Morgain") (TSX-V: MGM) is pleased to provide an update on its 100% owned Castillo Gold Project ("the Project") located in the State of Durango, Mexico.
Mining
Reverse Circulation (RC) infill drilling on approximately 1,000,000 tonnes of ore is complete. All cuttings have been sampled and assayed. This information is being compiled and will be used to generate a detailed production schedule for the first year of commercial production. Internal studies have concluded that 8,000 tonnes per day (ore plus waste) is an optimum start-up rate.
To minimize start-up capital costs, Morgain will utilize contract mining for mine start-up. Five mining contractors are presently tendering bids for contract mining operations. Morgain expects to select the successful contractor within the Third Quarter of 2006.
Metallurgy
Testwork by Kappes, Cassiday & Associates of Reno, Nevada is nearing completion, and has demonstrated gold recovery approaching 70% by crushing the ore to minus ½ inch. This confirms the conclusion of METCON Research of Tucson, Arizona, who noted in its March 9, 2006 report that "Heap leaching of material at a minus ¾ inch crush size will enhance recovery.".
As previously reported (see March 8, 2006 Press Release), two trial heaps with a total of 27,000 tonnes were leached. Results indicated favourable reagent costs, rapid leach kinetics, and negligible levels of deleterious impurities in leach solutions.
Morgain is now commencing detailed engineering for heap-leach pad, ponds and recovery plant. This is expected to be completed by the end of Third Quarter of 2006.
Permitting
The Project is currently permitted for a 100,000 tonne Test Program. Morgain has initiated life-ofmine environmental permitting, and anticipates receiving its Environmental Permit by the end of the Third Quarter of 2006.
Morgain is in possession of an Explosives Permit for the Project and is now seeking an amendment to enable on-site storage for commercial operations.
Construction
Construction of Morgain's heap-leach pad, ponds and recovery plant, as well as capital waste stripping, is scheduled to commence as soon as Morgain receives its Environmental Permit.
About Morgain Minerals Inc.
Morgain Minerals is a resource exploration company with a number of precious and base metal properties in Mexico. Its corporate strategy is to acquire properties with known resources that can be further developed to production status. Visit our website at www.morgainminerals.com for the latest corporate information.
For further information, please contact:
Chester F. Millar - Chairman and President
Telephone: 604-643-1727
Facsimile: 604-643-1726
morgain@telus.net
www.morgainminerals.com
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.