8th October, 2012, Arequipa, Peru
(FSE: GKW) (“Gold Horizons Mining Co. Ltd.” or the “Company”) is pleased to report our senior joint venture partner, Gold Horizons SAC, has signed a non-binding letter of intent to purchase two 1-hectare parcels, from the Asociacion Irrigadora Colonizadora Yuramayo. This property will be used the future mineral processing location for the Company.
The Parties have instructed their respective legal counsel to prepare a definitive purchase agreement containing the terms of the LOI containing representations, closing conditions and such other terms and agreements as are customarily contained in agreements of this nature which upon execution will replace and supersede the LOI.
This property is ideally situated for a variety of reason as the future processing facility for the Gold Horizons Mining. Economics and profit margins are the first considerations when choosing your location. Our proposed location is within 25 kilometers of the mine thereby keeping mineral transportation cost to below $10 per ton. It is not unusual for gold producers to have to ship their mineral several hundred kilometers in order for it to be processed. Next is the proximity to electricity. Often times mineral processing plants are required to generate their own electricity using a diesel generator. The cost of fuel is several times that of the electrical grid. For example a small processing plant of 25 tons per day can consume up to $25,000 in diesel per month compared to approximately $5,000 from the electrical grid. The savings are substantial and the reliability of the grid is superior with fewer power interruptions. Our future proposed property is within 3 kilometers of the grid, which provides three phases, 220-volt electricity ideal for industrial processing. In addition to the economics one must consider the environment when choosing the location for a mineral processing plant. Our location is ideally situated away from any watershed systems. We are located in a desert environment away from any major ground water or river systems. The majority of the water is this region arrives by canals. Our location is far removed from these water canal systems thereby allowing the local nearby community to sleep well knowing we are not a potential pollution threat to their water supply. Lastly, processing plants can be noisy and dusty. Distance away from people and businesses is critical, otherwise complaints are sure to follow. Our proposed location is secluded and very private, several kilometers away from the nearest town.
President and CEO, Scott Francis, ” We are very excited with this land acquisition for several reasons. First and most important it provides the Company a solution to ramp up gold production. Second it provides the Company a potential additional independent revenue stream. There are many mines in the surrounding areas that may choose to use our processing services. We anticipate we have the opportunity to build a facility that can process up to 300 tons per day, thereby exceeding our mines capacity. This excess capacity can be used to process mineral from other nearby mines. Lastly I see no reason why we cannot complete this purchase within a matter of days, thereby allowing the Company to begin construction of the new plant. Our mining plant engineers believe we can have the first phase of this plant operational within 60 days from the beginning of construction. It has taken us several months and much time in order to find the ideal location for the Company’s off site mineral processing plant. We have had several false starts but I now believe we have finally solved the last piece of the puzzle.”
Gold Horizons Mining Co. Ltd is in the midst of a Rights Offering to its existing shareholders. The Company will utilize the funds raised to purchase additional mining equipment, ramp up monthly gold production and construct an offsite processing plant’s with a capacity to process up to 150 tons per day.
About Gold Horizons Mining Co. Ltd.
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 the total costs by up to 50% per ounce. The Company, in partnership with its Peruvian joint venture partner, locates, develops, and operates near production ready mineral projects in Peru.
Forward Looking Statements
Forward Looking Statements 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”,”anticipate”, “proposed”, “potential”, “believe”, 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.