Patricia Mining Corp.
TSX VENTURE : PAT

Patricia Mining Corp.

November 01, 2007 08:30 ET

Patricia Mining Corp. Announces Achievement of Commercial Production at the Island Gold Mine, Wawa Ontario

TORONTO, ONTARIO--(Marketwire - Nov. 1, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Patricia Mining Corp. ("Patricia") (TSX VENTURE:PAT) is pleased to announce that during the third quarter of 2007, the mill at Island Gold processed 44,977 tonnes of development ore, and a total of 7,202 ounces of gold were sold at an average price of US$643 per ounce. The $5.1 million in proceeds from these gold sales were applied against the development charges on the property in accordance with applicable accounting standards. The Island Gold Mine is a Joint Venture between Richmont Mines Inc. (55%) and Patricia Mining Corp.(45%).

Pre-production operations at the Island Gold mine during the third quarter included the development, drilling and ore recovery from the initial stope. In addition to development ore, approximately 13,700 tonnes of ore from the initial stope was processed at the on-site mill in the third quarter at the rate of approximately 500 to 525 tonnes per day. The mill is expected to be fully operational in the first quarter of 2008 and have the capacity to process approximately 675 tonnes of ore per day with a targeted 95% gold recovery rate.

Ore from the second stope was also extracted in the third quarter, and processed through the mill in October 2007. The stope sequencing plan calls for the development and drilling of five additional stopes in the fourth quarter of 2007 in order to advance production, build ore inventory for processing and achieve the designed mill capacity in the first quarter of 2008.

Commercial production commenced on October 1, 2007. Richmont Mines Inc., the project operator, forecasts that the fourth quarter will be a transition period with a gradual increase in the tonnage of ore processed with a plan to meet designed capacity at the beginning of 2008.

During the nine-month period ended September 30, 2007, 124,161 tonnes of development ore were processed, and a total of 23,031 ounces of gold were sold at an average price of US$662 per ounce, for proceeds of $16,774,926 which were applied against development charges on the property in accordance with applicable accounting standards.

The Island Gold proven and probable reserves have been assessed at 1,013,854 tonnes of ore at an average diluted grade of 8.55 g/t, for a total of 278,711 ounces of gold at the project, representing more than four years production. In addition to the reserves, a total of 454,705 tonnes at an average grade of 10.26 g/t, or 149,972 ounces of gold, were categorized as measured and indicated resources, while inferred resources were evaluated at 610,728 tonnes at a grade of 9.96 g/t, or 195,549 ounces of gold. The results of the reserve calculation were completed by the independent firm Genivar and a technical report prepared according to the requirements of Regulation 43-101 was filed on SEDAR.

National Instrument 43-101 - The reserve and resource calculation for the Island Gold property as of May 15, 2007 was performed by GENIVAR for Richmont Mines Inc. as operator of the project. Mr. Michel Garon, Eng., of GENIVAR, is the qualified person under the terms of NI43-101.

The securities referred to herein have not been registered under the US Securities Act of 1933 and may not be offered or sold in the United States or to a US person absent registration or an applicable exemption from registration.

This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Patricia Mining Corp.
    Christopher R Chadder C.A.
    President & CEO
    (416) 214-4900
    or
    Patricia Mining Corp.
    Richard H. Sutcliffe, Ph.D,, P.Geo.
    Chairman
    (416) 214-4900
    or
    Patricia Mining Corp.
    Mr. Gus Garisto
    Investor Relations
    Cell: (416) 805-3106
    (416) 864-0620 (FAX)
    Email: info@patriciamining.com
    Website: www.patriciamining.com