RENO, NV--(Marketwired - May 6, 2013) - Coyote Resources Inc. (OTCQB: COYR) ("Coyote" or the "Company") is pleased to announce the Company has completed the preparation of a development plan for its Tonopah Extension Mine property.
The Tonopah Extension Mine is a formerly producing, silver-gold mine located in south-central Nevada, midway between Reno and Las Vegas. This property contains the mill tailings and mine dumps that were mined in the early and mid-1900s. When the Tonopah Extension Mine was in production, the mill would send the tailings, which often have economic concentrations of precious metals, into the drainage. This drainage, known as "Slime Wash," is now choked with historic tailings that host a considerable amount of recoverable precious metals. In addition, there are substantial mine dumps that contain recoverable precious metals, and that were not processed when the mill was in operation. It is important to note that production on this property did not cease because the mines were depleted of precious metal ore, but because of the falloff in prices during the Second World War.
Preliminary tests on samples taken from the tailings in a surface sampling program showed between 19 ppm-88 ppm (0.55-2.57 troy ounces per ton) silver and 0.117 ppm-0.698 ppm (0.003-0.020 troy ounces per ton) gold. Telesto Inc., an environmental engineering and science company, conducted a Scoping Study for the property and the draft report from that study confirms the existence of recoverable precious metals in the tailings and dumps, and sets out a development plan for their recovery. In addition, the study details the findings of historical surveys conducted when the mine was in operation, and studies completed more recently, that identify a very high potential for the existence of large undeveloped underground reserves. A plan for developing the mine is also included in the draft report.
The current site development plan is divided into two sets of activities that can be conducted concurrently or consecutively, depending on the availability of financing. The first set of activities surround the development of the surface reserves contained in the mill tailings and mine dumps, and the second focuses on the validation of the underground precious metal reserves.
The development of the surface reserves will entail the completion of an auger drilling sample program of the Slime Wash, ditching and sampling of the mine dumps, and initial testing of the samples to quantify the recoverable precious metal content and economic basis for doing so. This will be followed by a more extensive sonic drilling sample program on the mine dumps and final metallurgical work on the Slime Wash, and mine dump samples, to determine the process parameters for precious metal recovery. This will lead to an engineered process for precious metal recovery and the data gathered will allow us to formalize, with a great degree of certainty, the financial projections for the processing program.
The validation of the underground precious metal reserves will entail the drilling and sampling of a series of holes, to depths of up to 2,000 feet, to determine the boundaries of the precious metal veins identified in historical surveys. The number and location of the holes to be drilled will be determined by surface surveying and mapping the historical data that was gathered through underground mine surveys when the mine was in operation.
"We believe that by following this development plan we will be able to recover sizable quantities of silver and gold from the mill tailings and mine dumps that will generate a healthy cash flow while we validate the underground precious metal reserves," states Guy M. Martin, President and CEO of Coyote Resources. "We have identified the initial funding needed to move forward with our development plan and look forward to announcing the results of the sample testing program, as they become available."
About Coyote Resources (OTCQB: COYR)
Coyote Resources Inc. is a publicly traded precious metals exploration company focused on acquisition and exploration of silver and gold production potential. Based in the Fort Lauderdale, Florida area with offices in Reno, Nevada, Coyote Resources has a portfolio of exploration properties in Nevada. For more information on Coyote Resources, and to access further information about the Company, visit Coyote Resources website at www.coyoteresourcesinc.com.
On Behalf of the Board of Directors,
"Guy M. Martin"
President & CEO
Coyote Resources Inc.
Safe Harbor Statement
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth and business strategy. Words such as "expects," "will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Company's business; competitive factors in the market(s) in which the Company operates; risks associated with mining operations; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.