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Excalibur Resources Provides Update on Catanova Operations

Excalibur Resources Ltd. provides an update on the activities at its 49% owned subsidiary Minera Catanava de C.V. Since the plant manager started in February, he has been instrumental in analyzing the ore from the various veins and dumps in order to optimize plant operations.

He has made many improvements including changing the wave table location, installing the cyclone classifier, changing the water pump and starter panel, preparing the concrete vats for the recycling of water from the tailings, various safety items(trip wires, signage, equipment guards, etc). The plant schedule is to complete the installation of the two new iCON concentrators, change the liners in the ball mill this week, followed by repositioning of the conveyor belts and the base for a new cone crusher, which should be installed in early August. Then, lighting will be installed in the plant building to accommodate a 2nd shift for a two 12 hour shift operation. Finally, flotation cells will be installed in the Fall to improve the recovery of silver.

Don McLeroy commented, "The strategy from the outset was to try to get into production at the lowest cost possible and to use the cash flow to improve and expand operations on an ongoing basis. Unfortunately, it has taken much longer than anticipated due to periodic mechanical breakdowns of used equipment, in particular, the Telsmith cone crusher. Hence, we have ordered a new Symons design 3 foot short head cone crusher rated at 55-70 tph for 3/8 inch feed, from Sanland."

"Although the operation is not overly complicated and our team is not large with 39 employees, it is still a mining operation subject to government oversight by the environmental, labour and military departments including ongoing site visits and regular reporting. These inspections have led to numerous improvements in safety and security. It has also taken time to test the various ores, make improvements to the plant, research, obtain quotes for new equipment, inspect used equipment and to ensure the reliability, service capability and delivery of various suppliers. The mining operation has averaged about 50tpd or 1000 tons per month, having now advanced over 400 meters in 5 adits, but the focus has been on mine development to access the veins and the building of the tailings walls with the waste material so ore has been delivered to the plant only for testing purposes. The delivery of a scooptram this week will lead to more efficient mining by minimizing ore dilution. So despite our delays, Catanava is now well positioned to operate as a low cost producer in the new lower gold and silver price environment," stated Tim Gallagher.

Excalibur Resources Ltd. is a junior exploration mining company focused on the discovery, development and mining of economically viable precious metal mineral resources.



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