Rochester Resources Ltd. (TSX VENTURE: RCT)(FRANKFURT: R5I) is
pleased to announce financial results for the third quarter ended
February 28th, 2010 and provide a summary of its recent exploration
and development activities in Mexico.
The Company realized net revenue of $1,907,094 on 476.05 ounces
of gold and 88,128.62 ounces of silver sold during the three months
ended Feb. 28, 2010 (the 2010 third quarter), and generated an
operating profit of $233,035 before non-cash charges for depletion
and amortization of $250,780 and accretion of reclamation
obligation of $17,242.
The Company is currently processing an average of 198 tonnes a
day and is continuing to work towards ramping up to 300 tpd later
this year. A total of 15,433 tonnes were processed for the quarter
ended February 28, 2010. During the quarter head grades averaged
1.17 g/t gold and 294 g/t silver. Recovery rates for gold were 83.5
percent, and 62 percent for silver.
At current prices for both metals, a total of 1,873 ounces of
gold equivalent were produced, a 0.54 percent increase over the
previous quarter's production. Silver grades were in line with
expectations and projections however gold grades were below
expectations. The gold grade achieved in the last quarter was 1.17
g/t gold whereas projection was for 1.94 g/t gold.
During the month of March 2010, 6,135 tonnes were milled with an
average grade of 1.68 g/t gold and 241 g/t silver. Subsequent to
quarter end recoveries of gold and silver showed additional
improvements. Silver recoveries were approximately 70% for the
month of March 2010 and 76% through April 26, 2010. Gold recoveries
were approximately 90% for the month of March through April 26,
2010.
Mine Operations and Development
Mine production in Q3 was focused at the Tajos Cuates Mine. The
Company mined 13,071 tonnes sourced from several different levels.
The average grade of the material delivered to the mill was 1.75
g/t of gold and 391.37 g/t of silver.
Development projects at Macedo and Florida 1240 were restarted
during the reported quarter, resulting in 61% of total development
in the quarter allocated to exploration and mine infrastructure
projects.
Exploration and development work at Macedo during the reported
quarter generated positive results. During the period, a new
mineralized body was identified for possible future development
with estimated grades averaging 3.16 g/t gold and 108 g/t silver
over a 1.43 metre width.
(ii)Note that these assay results are from the Company's
in-house assay lab and while management is confident of the lab
procedures, the data is subject to on-going third party checks and
verification. The Company is in the process of up-grading the mine
laboratory based on recommendations made in a report by SGS in
January 2010.
Drift development in Q3 increased 9.98% over the previous
quarter. Of the total drift development during the quarter, 61% was
allocated to exploration and infrastructure projects, showing an
increase of 14% over the previous quarter.
During the reported quarter, 5.4 km of access roads to drilling
locations and 12 drilling platforms were constructed.
Exploration and Development
As at February 28, 2010, 436 metres of drilling had been
completed. Two drill holes, FNW-01 and FNW-02, have been completed
and two more are in progress. It is planned to use a total of three
rigs for the surface drilling and one for underground drilling.
Assay results are pending and will be released once received,
verified and evaluated.
The drill program at Florida NW area will drill test 13 veins
identified on surface up to 1.5 kilometres in length to the
northwest of the intrusive at the Florida Mine. These veins are
oriented parallel to the Florida Mine and previous surface work
supports continuity of the vein system to the northwest of the
post-mineral intrusive.
Concurrently, the development of a crosscut at Florida NW which
is now underway. The crosscut of 300m is at the 1240 elevation and
will cut the continuity of the mineralized zones of the Florida I,
II and III, northwest from the intrusive. The crosscut will provide
underground access to the 13 veins identified at surface. This is
part of the overall mine infrastructure plan of developing over
2.5km in three areas; Crosscut - Florida NW, Footwall drift at
level 1240, and the San Eduardo Tunnel.
Mr. Alfredo Parra, a QP as defined under NI 43-101 has reviewed
and approved the technical disclosure herein.
ON BEHALF OF THE BOARD
Eduardo Luna, President and CEO
About Rochester Resources Ltd.
Rochester represents a pure-play in the exploration and
development of high-grade gold and silver properties located in
Nayarit, Mexico. The Company is a niche player in Mexico which has
assembled an attractive portfolio of properties in the Sierra Madre
Occidental Range. This is the largest epithermal precious metal
region in the world, hosting the majority of Mexico's large tonnage
gold and silver deposits. Current production helps generate cash
flow and helps fund our ongoing exploration and development.
Rochester is well positioned to advance its Projects and can very
quickly become a significant player in Mexico. Rochester has a
strong senior management team based in Mexico, a workforce in place
to advance its projects through to mine development, and strong
financial backing to implement and advance our work programs.
Forward Looking Statements
This Company Press Release contains certain "forward-looking"
statements and information relating to the Company that are based
on the beliefs of the Company's management as well as assumptions
made by and information currently available to the Company's
management. Such statements reflect the current risks,
uncertainties and assumptions related to certain factors including,
without limitations, competitive factors, general economic
conditions, customer relations, relationships with vendors and
strategic partners, the interest rate environment, governmental
regulation and supervision, seasonality, technological change,
changes in industry practices, and one-time events. In addition,
the Company has not conducted an independent feasibility study on
the Mina Real project which may increase the risk that the planned
operations are not economically viable. Should any one or more of
these risks or uncertainties materialize, or should any underlying
assumptions prove incorrect, actual results may vary materially
from those described herein.
Neither 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.
Contacts: First Canadian Capital Investor information
416.742.5600 or Toll Free: 866.580.8891 info@rochesterresources.com
www.rochesterresources.com
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