VANCOUVER, BC / ACCESSWIRE / October 28, 2015 / Para Resources Inc. (the "Company" or "Para") (PBR.V) (WKN:A14YF1) advises that it has received final acceptance from the TSX Venture Exchange (the "TSXV") for its indirect acquisition of an interest in the El Limon property and mine located in Zaragoza, Antioquia, Colombia. The Company entered into agreements to acquire an indirect interest in the El Limon mine on the terms and conditions set out in our news releases of July 20, and September 30, 2015. The acquisition has been transacted through Para's subscription of common shares in Colombia Milling Ltd. ("CML"), a Belize incorporated company, which has a 61.202% interest in the El Limon property and mine. Para has advanced its total required equity commitment of U.S. $1.0 million to CML, which was utilized to both acquire the El Limon mine and to upgrade the El Limon gold mine and mill.
Completion of the upgrades, which are designed to increase production from 50 tonnes per day to 200 tonnes per day and bring the mill to its fullest potential for gold recovery of plus-90 per cent, is proceeding on schedule and completion is expected in Q1, 2016. Para is pleased to advise that relevant permits required for installation of the additional ball mill at the El Limon facility are in hand. The upgrades include the addition of a 7' x 7' Denver ball mill, three additional flotation tanks and additional cyanidation capacity to support the increased ball mill capacity. Further, a second egress tunnel is being developed in the southern portion of the El Limon mine to provide added safety in the mine and to improve mine ventilation.
Upon completion of the upgrades, the El Limon mill will process material from its own mine facility and will also begin providing toll-milling services to independent, local mining operations. Para is assessing the numerous options for toll processing agreements from among 57 independent mining operations in the prolific Zaragoza gold district.
Geoff Hampson, Chairman and CEO of Para Resources, commented:
"We are pleased to have earned TSXV acceptance to our acquisition of an indirect interest in the El Limon gold mine and mill property. We have advanced our U.S. $1.0 million dollar capital commitment slightly ahead of schedule and have the option of increasing our interest in CML from the initial 33%. Consequently, CML is moving forward with the upgrades to the mine and milling facilities more quickly than anticipated, as demand for toll milling appears strong. We expect the toll milling operation to be able to process over 75,000 tonnes of material per year once the upgrades are completed."
El Limon Overview
The El Limon property is located in the northwest part of Colombia near the town of Zaragoza, Antioquia, Colombia and is accessible via both paved highways and gravel roads. The Mine is situated in the wide Zaragoza Gold District which extends south from El Bagre to Segovia and Remedios, all towns with considerable historical alluvium mining and large underground gold mines that have operated for generations. The El Limon claims cover a total area of approximately 277.5 hectares, including 86.4 hectares in RPP No. 12011 and 191.1 hectares in the concession contract No. 620 which is located west of the currently exploited zone. Gold grade at the El Limon mine ranges from 5 grams of gold per tonne to more than 100 grams of gold per tonne; the expected diluted average gold grade is 7-10 grams per tonne. Extremely high-grade mineralization is common in the narrow-vein underground mines in the region.
It is CML's intention to utilize a portion of any cash generated from mining to drill the El Limon property to expand the number of targeted areas for mining.
Mr. David Bikerman, a Member of the Australian Institute of Geoscientists (MAIG #3558), Mining Engineer, a CP/QP under NI-43-101, has reviewed and approved the scientific and technical information in this press release.
ABOUT PARA RESOURCES:
Para Resources is an exploration-stage gold mining and toll milling company. In addition to its existing properties, Para will continue to take advantage of current market conditions to acquire and develop additional assets that have strong exploration and development potential.
ON BEHALF OF THE BOARD OF DIRECTORS
"C. Geoffrey Hampson"
C. Geoffrey Hampson
Chief Executive Officer and Director
For further information, please contact Andrea Laird:
Telephone: 604-398-3227
Neither TSX Venture Exchange nor its regulation service provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements, analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The company does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change except as required by applicable laws. Investors should not place undue reliance on forward-looking statements.
SOURCE: Para Resources Inc.