2012 was a banner year for the company. With the geological study in hand we moved the equipment to the mine and began opening up the veins, culminating with our first sale of processed mineral (gold). In July we put investor relations in place and began communicating regular updates and a road map to our plan moving forward. We continued testing samples of mineral to ascertain the best method of processing and brought in specialists to map out a plan for the most efficient map to mining the mineral. December saw the company finalize negotiations to purchase a the property for our new processing plant that we plan to build to eventually process up to 300 tons per day, thereby providing us with cost effective mineral processing and an independent revenue stream. We finished the year off with submitting a new application for a new listing on a Stock Exchange.
We are happy to announce that our momentum carried forward as we entered 2013. We hit the ground running and have picked where we left off working on completing the Yuromayo processing plant. We are pleased to report that we are approximately 70% from finish the plant.
To review, we purchased the 4.5-acre property last October. We spent the month of November building an access into the property and grading the property to prepare it for the cement contractors. During the entire month of December and part of January the concrete slabs and retaining walls were built. We then transported to the processing plant our mills, tanks, and crushers. This month we are busy fabricating the remaining equipment i.e. ore-bins, conveyors, and agitation tanks. We expect the equipment will be completed by the end of February. Installation including electrifying all the equipment as well as making all the mechanical connections necessary to bring the plant into operations will be carried out during the first weeks of March. We are anticipating to be processing our first mineral by April 1st if not sooner.
The processing plant gives the company a great deal of added value and a strategic advantage over its competition. Let me explain. Extracting the mineral is only half the job in mining. Once the ore has been attained it must be transported and processed. To maximize profits and keep the overhead to a minimum, the distance between the processing plant and mine must be near, otherwise freight cost will quickly eat up profits. Furthermore subcontracting out mineral to other processing plants is expensive and has proven unreliable for us this past year. The Yuromay Plant addresses both of these issues. First the processing plant is a joint venture project sharing in ownership and profits between Gold Horizons Mining and it’s senior J.V. There will be no markup on the processing of our mineral. Second the processing plant is strategically located 8 miles from the mine, 1 mile from the Pan American Highway and a quarter of a mile from 3-phase grid connected electricity. Our location keeps the logistics simple, energy costs to a minimum, and convenient for other nearby mines seeking to have their mineral processed at our plant.
Scott J. Francis
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
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 “plan”, “expect”, “anticipating” and “approximately”. 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.