THEMAC Resources Group Limited
TSX VENTURE : MAC

May 24, 2011 09:02 ET

New Mexico Copper Corporation Parent Company, THEMAC Resources Group Limited, Gains 100% Ownership of Copper Flat

New Mexico Economic Development Gives Project Thumbs Up

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 24, 2011) - THEMAC Resources Group Limited ("THEMAC" or "the Company") (TSX VENTURE:MAC) is pleased to announce that on May 18, 2011, the Company made the final payment on the Copper Flat project. Through its wholly owned subsidiary, New Mexico Copper Corporation, THEMAC is now 100% owner of the entire project. Copper Flat is located about 20 miles Southwest of Truth or Consequences in Sierra County, New Mexico.

"We're very happy to announce this significant milestone," said Barrett Sleeman, Chief Executive Officer of THEMAC. "We are committed to bringing this project to production."

The site was originally an open pit mine developed in 1982, which closed shortly thereafter when the market price for copper dropped. Building foundations and other infrastructure remain in place at Copper Flat. The project will create close to 500 construction and approximately 200 jobs at the mine site. The operation will also contribute royalties and tax revenues to the state of New Mexico.

"Bringing mine projects such as Copper Flat to production is the goal and objective of this administration," said Cabinet Secretary Designee Jon Barela of the New Mexico Economic Development Department. "This is about job creation and economic survival for Southern New Mexico. We're very pleased to play a role in paving the way for New Mexico Copper Corporation," added Barela.

"This Administration is committed to making the state a place where business and government can work together to create an environment that promotes a vibrant and healthy job market and economy," concluded Barela.

Final payment to the previous owners was in the amount of USD$7,000,000. Also, on May 16, the company made a USD$1,000,000 payment for the water rights which will be necessary for full production. One final water rights payment in the amount of USD$750,000 is due when plant operations commence. The funds for these purposes amounting to $5 million were advanced by the major shareholder of THEMAC in line with terms of a previously negotiated loan arrangement.

"New Mexico Copper Corporation is dedicated to establishing a dialogue with the residents of Sierra County," said Barrett Sleeman. "We will continue communicating with the community on our plans as our management is environmentally responsible and sensitive to any concerns."

About the Copper Flat Project

Copper Flat is a former producing mine located approximately 20 miles southwest of Truth or Consequences in Sierra County. Permitting for a return of the project to production is at an advanced stage, and a prefeasibility study is in progress and targeted for completion during 2011.

The Copper Flat project is a porphyry copper-molybdenum-gold-silver deposit. The deposit has NI43-101 Indicated Mineral Resources of 107 million short tons grading 0.303% copper and 0.01% molybdenum for 645 million lbs copper and 21.4 million lbs molybdenum, plus Inferred Mineral Resources of 46 million short tons grading 0.24% copper and 0.006% molybdenum for 222 million lbs copper and 5.6 million lbs molybdenum.

The gold and silver content of the deposit is evidenced by historic production and metallurgical test work, and gold and silver are targeted for incorporation into the deposit's NI43-101 Mineral Resource statement following completion and interpretation of a re-assay program using historic drill pulps.

An NI43-101 Preliminary Economic Assessment ("PEA") dated June 30, 2010 and updated February 25, 2011 has been completed for Copper Flat and can be viewed on SEDAR.

Civil infrastructure in place at Copper Flat includes a tailings dam, largely pre-stripped open pit, power lines, water well field and pipeline, access roads, diversion channels and building foundations. The project land package comprises in excess of 1,200 hectares. For more information visit www.nmcopper.com.

About THEMAC Resources Group Limited

THEMAC is a copper development company with a strong management team and as of May 18, 2011, a 100% ownership interest in the Copper Flat copper-molybdenum-gold-silver project in New Mexico, USA. We are committed to bringing the closed copper mine, Copper Flat, in Sierra County, New Mexico back into production with innovation and a sustainable approach to mining development and production, local economic opportunities and the best reclamation practices for our unique environment. The Company is listed on the TSX Venture Exchange (ticker: MAC) and has issued share capital of 74,117,622 common shares (fully diluted share capital 134,523,241).

For more information please visit www.themacresourcesgroup.com or review the Company's filings on SEDAR (www.sedar.com).

Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.

Contact Information

  • THEMAC Resources Group Limited
    Barrett Sleeman, P. Eng.
    Chief Executive Officer
    (505) 274-1638
    (604) 806-6112 (FAX)
    www.themacresourcesgroup.com