Farallon Resources Ltd.

Farallon Resources Ltd.

January 16, 2007 09:10 ET

Farallon Makes Major Equipment Purchase for Campo Morado

Fully autogenous ball mill acquired for G-9

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2007) - Dick Whittington, President & CEO of Farallon Resources Ltd. ("Farallon" or the "Company") (TSX:FAN), is pleased to announce that the Company has retained Farnell-Thompson Applied Technologies Inc. ("Farnell-Thompson"), of Montreal, Quebec, to design and direct source a 6.7 meter (22 foot) diameter by 2.74 meter (9 foot) long, fully-autogenous grinding mill. All components of the mill will be shipped on or before January 2008, allowing for the mill to be available for commissioning, on schedule, by mid-year 2008.

The size of the unit, which will be newly built for Farallon, was based on testwork performed by SGS Lakefield Ltd. of Lakefield, Ontario. Results of flotation testwork have shown that metallurgical performance would be enhanced through the application of the inert environment that would be provided by fully-autogenous grinding.

Farallon has been able to secure this important piece of equipment, with the favourable delivery time under the prevailing difficult market conditions for ball mills. It is a key part of advancing the Company's objectives for the G-9 deposit at its Campo Morado Property in Guerrero State, Mexico. It was particularly important to make this acquisition at this time to be able maintain a parallel schedule with other aspects of development. The fully-autogenous grinding mill is the largest single item of the equipment needed for the process plant now in the detailed design stage by M3 Engineering and Technology Corp. at their facilities in Tucson, Arizona, USA and Hermosillo, Sonora, Mexico.

The Company expects to place firm orders for all remaining principal items of process equipment by the end of February 2007. This would effectively complete the purchases of all major equipment for the 1500 tonnes per day mill at G-9.
Dick Whittington said:

"Acquisition of the fully-autogenous grinding mill is good news. This is the single most important major equipment purchase, and keeps us on track toward the objective of developing a mine at G-9 by July 2008. The success of our recent financing directly contributed to our ability to make this purchase. With this acquisition behind us, we are now able, to the maximum extent possible, to fast-track mine exploration and development activities. The Company's goal is to evolve from an exploration to a producing company within the next 18 to 24 months."

For further details on Farallon Resources Ltd. and its Campo Morado property, please visit the Company's website at www.farallonresources.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.


J.R.H. (Dick) Whittington, President & CEO

Forward Looking Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. The likelihood of future mining at Campo Morado is subject to a large number of risks, including changes in government policies regarding mining and natural resource exploration and exploitation, and will also require achievement of a number of technical, economic and legal objectives, including obtaining necessary mining and construction permits, completion of pre-feasibility and final feasibility studies, preparation of all necessary engineering for underground workings and processing facilities as well as receipt of significant additional financing to fund these objectives as well as funding mine construction. Such funding may not be available to the Company on acceptable terms or on any terms at all. There is no known ore at Campo Morado and there is no assurance that the mineralization at Campo Morado will ever be classified as ore. For more information on the Company, Investors should review the Company's annual Form 20-F filing with the United States Securities and Exchange Commission and its home jurisdiction filings that are available at www.sedar.com.

No regulatory authority has approved or disapproved the information contained in this news release.

Contact Information

  • Farallon Resources Ltd.
    Shawn Wallace
    Investor Services
    (604) 684-6365 or Toll Free: 1-800-667-2114
    (604) 684-8092 (FAX)
    Website: www.farallonresources.com