Arequipa, Peru, May 16th, 2013 — Gold Horizons Mining Co. Ltd.
(GXG Markets: GHMG) (“GHM” or the “Company”)
Gold Horizons Mining is pleased to announce through negotiations with the property adjacent to its processing plant that permission has been granted to connect its electrical grid establishing a corridor on their property. The significance here is that the costly electrical extension distance from the previous two kilometers from the Pan American Highway to the facility is greatly reduced resulting in Gold Horizons Mining’s energy supply cost being paired down to the minimum.
There were many options available to connect to the grid but none more strategic or economical. The most obvious advantage is the electrical infrastructure on the property is already in place. This allows the Company to piggyback on the already existing grid simplifying the installation. Secondly, the distance between the plant and the grid is mostly a direct, straight line further reducing installation cost. Thirdly and perhaps most importantly is the relationship now being cemented between GHM and its neighbor. This neighbor has deep roots in the community and is held in high esteem. His voice and opinion carries weight and influence in local politics. Being a good neighbor and having the support of the community on a grassroots level is key to being accepted and ultimately successful.
Energy is one of the largest costs confronting the mining industry. The cost of producing one ounce of gold is greatly affected by the cost of energy. Processing plants are energy intensive and are operated non-stop twenty-four hours a day. Many of the processing plants that we will be competing with operate in areas where there is no electrical grid available. Their only option is to run diesel generators to produce their electricity. This gives GHM a distinctive competive advantage: our overhead is a fraction of the cost because the plant will be connected to 3-phase 380 volts industrial electricity. Furthermore, many of the surrounding mines have to ship their mineral hundreds of kilometers to these processing plants. Our goal is to produce an ounce of gold below $600. The combination of our processing plant being within 20 kilometers of the mine, within 5 kilometers of the Pan American Highway and connected to the electrical grid will support us in meeting this $600 cost benchmark.
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 opportunities and identification in the mineral resource sector. Gold Horizons Mining specializes in small mine development, specifically underground, narrow vein mining. The Company’s strategy has now evolved to include the processing of its own mineral which has lowered total production 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 StatementsThis press release by its very nature contains forward-looking information. Except for statements of historical fact certain information contained herein constitutes forward-looking statements which may include statements regarding production estimates and targeted production for 2013/14. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “anticipation”, “scheduled” or “believe”. 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 this forward-looking information there may be other factors that cause the 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 any forward-looking information or statements. The Company does not undertake to update any forward-looking information or statements except in accordance with applicable securities laws.