Arequipa, Peru, 30th October, 2012
(FSE:GKW) (“Gold Horizons Mining Co. Ltd.” or the “Company”) is pleased to report our senior joint venture partner, Atlantis Gold SAC has signed and notarized a contract with W and R Fabricaciones E Inversiones SCRL to complete the construction and installation of our new processing plant.
Over the next 20 days W & R Fabricaciones will fabricate the remaining needed equipment in order for the Company to complete the first 50 tons circuit for our processing plant.
Items being manufactured include two 70 ton ore bins, shaker/classifier table, a grizzly and several conveyor systems. Additionally they will deliver the equipment to the new site and assemble it insuring all the components fit and work together in the field.
President and CEO, Scott Francis commented: “It has been a very busy past few months locating and securing the property, preparing the site plans and coordinating the various contractors in order for the processing plant to be completed in early January. I am very pleased with this contract, this deal ties together all the various moving parts and has a completion date of January 3rd, 2013.”
The significance of the processing plant and its close proximity to both the mine and 3-phase grid connected electricity cannot be understated. Overheads can now be kept to a minimum. Significantly the Company is projecting the total cost to produce an ounce of gold to be under $600 per ounce.
The plant will begin producing 50 tons per day upon completion of the first circuit. With the continued support from our investors we will continue to purchase additional mining equipment in order to ramp up daily gold production at the mine in order to match the plant’s capacity. Working the plant/mine 26 days per month at 50 tons per day with a projected 6 grams of gold per ton average the mine will produce approximately 7 kilos of gold per month. Over the next 24 months the Company plans to double and/or triple this daily production level.
Gold Horizons Mining Co. Ltd is currently closing out their Rights Offering. The Company will utilize the funds raised to increase monthly production at the mine and at the same time upgrade the processing plant’s capacity to some 1500 tons per month.
Gold Horizons Mining Co. Ltd is a start up gold and silver producer as well as an exploration company operating in Arequipa, Peru. The Company is committed to building long-term shareholder value through strategic opportunity and identification in the mineral resource sector. The Company specializes in small mine development specifically underground, narrow vein mining. The Company’s strategy has evolved to include the processing of its own mineral which has lowered total production costs by up to 50% per ounce. The Company in tandem with its Peruvian joint venture partner locates, develops and operates near production ready mineral projects in Peru.
This press release contains “forward-looking information”. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include statements regarding production estimates and targeted production for 2012. Generally, forward-looking information can be identified by the use of forward looking terminology such as “planned”, “expects” and “estimated”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.