Latin American Minerals Inc. is pleased to provide an update of events pertaining to mining and exploration on its Paso Yobai gold mining operation in Paraguay.
In order to determine the most efficient and cost effective methods for producing gold from the Company's operation, the services of the John T. Boyd Company, Professional Mining Consultants (BOYD) based in Pittsburg, PA, were engaged in December 2015. Their review included assessment of the Paso Yobai process plant as well as near term plant feed alternatives and includes specific recommendations to maximize near-term cash flow generating potential under the scope of Phase I; the reprocessing of tailings and stockpiles. This analysis and report have now been received.
In its Phase I Report, BOYD has recommended several important changes to improve recoveries, improve operating efficiency and reduce operating costs. These changes are projected to be fully implemented with full production reached by July 2016, including approximately two months of commissioning and ramp-up time. BOYD has estimated that monthly production should rise to roughly 300 ounces of gold per month for the balance of 2016.
"The BOYD report has provided a great deal of insight as to what is required from a processing and metallurgical standpoint which will enable the Company to achieve a higher recovery rate, greater throughput and significantly lower production cost per ounce of gold produced.
"Phase 2 envisages further extraction of soft saprolite from the existing Independencia Mine pit and Phase 3 will focus on the mining of hard rock from the Independencia pit. The timing of these phases will be dependent on gold price and financing, however only the front end of the operating process will require minor changes to handle the different material," said Basil Botha, Chairman.
In addition, the Company will be appointing a qualified mining engineer to be stationed at the mine site full time to manage day-to-day mining and processing operations, with on-going oversight by BOYD's engineers and metallurgists.
The Company is currently seeking investment partners to fund the required upgrades to the gold processing plant, either through a debt facility or via a gold streaming arrangement.
Miles Rideout has been appointed VP Exploration to initially focus on the evaluation of the drill-ready targets on the Paso Yobai project. Through previously completed geophysical surveys, soil and auger samples, and trenching, the Company has identified six high quality target areas and is actively seeking potential joint venture partners to advance the project.
A new community relations program has been launched in co-operation with the Mayor and Municipality of Paso Yobai. Included in this program are road repairs and a program to assist local schools. The Company's community relations team is preparing a plan and budget for a more extensive program, once gold production is restarted.
Following an oversubscribed private placement of $1,566,962 on November 2015, a 10:1 consolidation of the shares of LAT was undertaken on 30th December 2015. The current capital structure is 28,503,137 shares outstanding, plus 19,610,156 warrants, which are net of 500,000 warrants that expired on February 4, 2016.
Insiders now hold 6.09% of the company and total options issued stand at 2,546,500.