December 21, 2012 - Arequip, PERU
(FSE: GKW) (“Gold Horizons Mining Co. Ltd.” or the “Company”) is currently working to complete the construction of its Yuromayo processing plant located in Vitor, Peru. This past October GHM signed a 30% joint venture contract with Gold Horizons SAC to build a 300-ton processing plant. The first 60-ton per day circuit is scheduled to come online in Q1, 2013. Over the next 18/24 months with revenues ranging from $110 to $300 per ton in processing fees and processing 60 tons per day the plant is forecasted to generate an operating profit of over $900,000 per annum and at 200 tons a day over $5,000,000 per annum, operating profit. Since the purchase of the 4.8 acre Yuromayo property in late October, 2012 the following has been accomplished:
- Construction of a 5km access road linking the plant to the main highway capable of handling 20-ton dumpers and water trucks.
- As of early December the grading of the step elevations (6 in total) has been completed preparing the way for the cement slab construction to begin.
- Construction of the temporary camp with full facilities capable of sleeping and feeding 15 workers.
- Signing of the contract with “W and R Fabricaciones SAC” was duly completed on November 1st, 2012 to manufacture and install the remaining processing plant equipment necessary to complete the first 60-ton circuit. This included two 75-ton ore bins, 3 separate conveyors to transport mineral from the ore bins to the ball mills and crushers and 3 agitation tanks. The processing plant equipment is scheduled to arrive at the plant facility starting January 2nd, 2013 and the full installation is due to be completed mid February 2013.
- Signing of the contract with “Constructora Pika Pika” was duly completed on November 20th, 2012 to construct the concrete slabs, retaining walls, offices/living quarters and water storage tanks. Currently ahead of schedule all concrete slabs and retaining wall work will be completed by the first week of January 2013.
- Signing of a third contract was duly completed on December 22nd, 2012 with “FDN Ingenieria y Gesarrollo Electrico” an electrical contractor who will connect high-tension 3-phase electricity to the processing plant. Installation will require approximately 60 days and will involve installing a transformer and several electrical poles between the processing plant and the electrical grid a distance of some 2 kilometers.
CEO and President, Mr. Scott Francis explains, “ I am delighted with the synergy between the 2 joint venture partners we have secured this past year, the Angostura Project and the Yuromayo Processing Plant. The Company becomes substantially more profitable since securing the processing plant within 20 kilometers of the mine and 5 kilometers of the Pan American Highway. The processing plant has an exclusive contract with Atlantis Gold SAC to purchase all their mineral ensuring the plant will have immediate earnings and the ability to self finance itself in order to rapidly grow its processing capacity up to 300 tons of ore per day.”
Please note that this processing plant is a new revenue stream. It is to be considered as significant added value to the main source of income produced by the gold mine and mining operation itself (138,000 inferred gold ounces) and should not be overlooked. Management is committed to and will continue in their efforts to add significant value to the Company and its shareholders to take maximum advantage of the strong surge in both global gold demand and market price.