24th October, 2012, Arequipa, Peru
(FSE: GKW) (“Gold Horizons Mining Co. Ltd.” or the “Company”) senior joint venture partner has signed and notarized a private contract to purchase 2 hectares of land in Southern Peru as the site of their future processing plant. This planned facility represents the key to ‘ramp up’ gold production at the Company’s Angostura joint venture project. Additionally we expect the processing plant will provide an independent revenue stream by providing processing plant services to the expanding neighboring small-scale mining community. Ideally situated within 2 miles of the Pan American Highway, the processing plant will have access to nearby water and 3-phase grid connected electricity. President, Scott Francis explains: “ The geographical location of the property is ideal and we feel fortunate to be located within 10 miles of our mine and 2 miles from the Pan American Highway. Logistically speaking, the construction, installation and operations of the plant will be a breeze.”
Next week construction is planned to begin with a D6 Caterpillar bulldozer spending several days grading the property and creating the needed elevations for the ore bins, ball mills, agitation tanks and other processing plant equipment. Upon the D6 completing its work cement trucks will arrive to poor the concrete slabs. Our plan is to get the plant up and running immediately and we expect to be processing 25 tons per day within a period of a few weeks. As we develop the mine and daily production increases we will increase processing capacity at the plant. Over the next 18 to 24 months we plan to ramp up gold production to between 100 and 150 tons per day.
The processing plant benefits from the low priced electrical grid connection and its close proximity to the Pan American Highway. Combined with these factors the scarcity of processing plants in the surrounding area leads us to conclude that the Company has an excellent opportunity to offer a more competitive mineral processing charge to the numerous small and mid size producers whose current option is to sell their concentrates to smelters at a high processing cost.
Southern Peru is generally regarded as one of the world’s premier locations for copper mining. Therefore the Company will consider adding additional circuits to its processing plant which will allow us to process not only gold but copper and silver as well. In light of the fact that this plant has the capacity to process 300 tons per day, an additional 150 tons per day could be added to this circuit as we grow this independent revenue stream. Gold Horizons Mining Co. Ltd is currently in the midst of a Rights Offering for its existing shareholders. The Company will utilize the funds raised to list on a new stock exchange, purchase additional mining equipment, ramp up monthly gold production and construct an offsite processing plant with a capacity to process up to 150 tons per day.
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 partners, 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 “feel”,”anticipate”, “expect”, “proposed”, “potential”, “plan”, “believe”, “prepares”, “consider”, 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.