Arequipa, Peru, 22nd October, 2012
FSE: GKW (“Gold Horizons Mining Co. Ltd.” or the “Company”) is pleased to report together with our senior joint venture partners, Atlantis Gold SAC/ Gold Horizons SAC, we have made strong progress in 2012 so far as the company transitioned into the high potential Angostura property.
“Despite our limited resources as a startup mining company, we have built strong foundation to be successful and I look forward to a positive period ahead.” said an upbeat Scott J. Francis CEO & President. He continued “I am working 7 days a week between overseeing the production and our legal team boosted by the faith and support I am getting daily from our stakeholders. Our investor relations team are raising the profile of the company in the investment community and I am getting extemely positive feedback from shareholders of their work.”
The early part of the year saw us secure the opportunity via legal requirements and filings being concluded.
- NI 43-101 Geology report prepared and completed for the Gloria Mine.
- Joint venture contract filed with the Ministry of Mining.
- Permits are in final application phase for the mine.
- Processing plant permits are being applied for under Peru’s new amnesty program
Our next set of achievements include the all-important ground work as impact roads, a base for the workforce and plant is installed. We faced delays due to adverse wet weather conditions in Q1, however Q2 and Q3 have seen the company place the venture in the position to realize our production targets.
- Roads built providing access to the majority of the veins, a location for the camp, and exploration work which discovered several new veins.
- Mining camp set up for 35 workers.
- Mining equipment purchased and transported into the mine, i.e compressors, air hoses, air tanks, hammers, winches, etc. We now have the capacity to mine up to 60 tons per day.
- Exploration and mining operations began in March, 2012. Several new tunnels were developed and several hundred tons of mineral was extracted and processed.
Lastly the Company wants to impress upon the fact that production and inventory sales have begun. We are excited about meeting our production target for 50 tons per day in the coming months, due to higher than average gold assays and sharply improved efficiency in our processing techniques. The recent surge in spot gold prices have made our production that much more profitble. The Company also decided to invest more in its own processing capability to further increase margins and to generate extra an income stream offering spare processing plant capacity to other mines in the area (transportation of mineral in a significant part of the cost structure of miners in this area).
- A small on site pilot processing plant, 8 tons per day was built at the mine. Several hundred tons of mineral was processed and sold during the past few months before deciding to build a larger processing plant.
- Purchased and constructed processing plant equipment for our 60 ton processing plant. Included two ball mills capable of producing 60 tons per day, agitation tanks for 35 tons per day, conveyors, hydro cyclone, ore bins, grizzly and pulp pumps.
- Purchased and began construction, in October 2012, a 4.8 acre property within 10 miles of the mine as the location for our processing plant. Processing plant is targeted to begin operating at 35 tons per day Jan. 15th, 2013.
We hope this summary of events and updates serves as a reminder to our stakeholders that we are making progress.
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
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”, “targeted”, “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