Plexmar Resources Inc.

Plexmar Resources Inc.

July 13, 2011 07:07 ET

Plexmar Resources Inc.: Malin Plant and Project Update

QUEBEC CITY, QUEBEC--(Marketwire - July 13, 2011) - Plexmar Resources Inc. (TSX VENTURE:PLE) announces that from February to the end of June, the production at the Malin plant was limited to small quantities of polymetallic ores as a result of delays to receive the permits for transport and storing of chemicals. These have now been issued by the Regional Government. All licenses have now been received and the plant is operating on a continuous basis. During that period, two additional tailing ponds with a capacity of 12,000 cubic meters were built and 4,800 m2 of geomembrane were installed and certified as compliant by local government officials.

By the end of June, the plant had processed 680 tons of polymetallic and 120 tons of copper ores. It is currently processing an average of 60 tons per day of copper/polymetallic ores in the flotation line.

The third quarter will see the completion of the installation of a second 5ft x 8ft ball mill so as to increase the capacity of the polymetallic circuit to 150 tons per day. Combined with the Gold circuit this will result in a total treatment capacity of 300 tons per day or 150 tons per day in each circuit (polymetallic-floatation and Gold) during the fourth quarter of 2011.

The gold circuit began its operation on July 8th at a rate of 60 tons per day and will originally process the 1,000 tonnes of gold bearing ores that have been purchased and stockpiled at the plant for the past eight months. Gold and silver ores will be alternately processed with polymetallic ores until the second ball mill is installed and in operation later in the quarter. The joint venture is buying gold and polymetallic ores on a daily basis.

The first sales of polymetallic concentrates and gold production will take place in the coming weeks with approximately 110 tons of copper and silver concentrates and 800 ounces of gold.

The Malin plant is a custom milling and processing plant located near the town of Trujillo and is being operated through a 50-50 joint venture with J&M Business SAC.

Suyo plant

The company is in discussions to purchase a small gold lixiviation processing plant located near Suyo as previously announced in the press release dated Feb 24th 2011. The plant is currently operating at a rate of 35 tons per day and processing local gold ores. The objective is to increase the capacity to a minimum of 60 tons per day in a timeframe of 120 days after closing of a transaction. If completed, this acquisition will facilitate the purchasing of the gold ores currently being extracted, by local miners, from the Bolsa del Diablo area. Full transaction details will be provided when negotiations are completed.

Marilia project

A first exploration program was carried out on the Marillia properties located near Cajabamba, La Libertad department, some 4 kilometres northeast of Sulliden's Shahuindo gold deposit. The Company owns three concessions totalling 1,600 hectares. Results and analysis from this program will be issued upon receipt of lab samples.

This press 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 exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

223 M shares outstanding.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Plexmar Resources Inc.
    Guy Bedard
    418-658-6776 ext.107

    Paradox Public Relations