SOURCE: ROYAL MINES AND MINERALS CORP.

Royal Mines and Minerals Corp.

June 24, 2009 07:00 ET

Royal Mines and Minerals Corp. Update

HENDERSON, NV--(Marketwire - June 24, 2009) - Royal Mines And Minerals Corp. (OTCBB: RYMM) ("Royal Mines") issued the following news release to update developments on its mineral properties in the Piute Valley just south of Searchlight, Nevada, approximately 50 miles south of Las Vegas. Royal Mines has a mineral lease covering 20.61 acres of patented claims (the "Smith Lease Property") which is located immediately south of the historical Quartette Mine which produced gold and silver from 1902 to 1965.

Royal Mines also holds an option to acquire a 7/8th undivided interest in twenty (20) unpatented claims (the "BLM Claims") located near the Smith Lease Property in the Piute Valley. Each mining claim is comprised of 160 acres.

During our recently completed pilot production test on the Smith Lease Property, we built and operated a gravity concentration circuit in an effort to create a high value concentrate material. The results from our test were very promising, although inconclusive as far as the commercial viability of the gravity concentration process. Consistent with prior tests we confirmed the existence of gold in the concentrates; however, the concentrates were irregular in nature and could not be used as a method to scale up production. We are currently in the process of having a third party concentration technology evaluate the material to see if they can get consistent, higher concentrate results. Initial results should be available within two weeks.

Throughout our testing we found significant gold values in the head ore, that if efficiently concentrated should prove to be commercially viable. The range in value is .03 to .11 oz Au per ton in the head ore. Once we prove out a viable method for concentration, we will scale up the process and begin refinement in our Phoenix facility.

Additional testing on the property showed large quartz structures, over 50 feet wide in some cases, between the 36' and 44' depth levels. These structures appear to be typical of the historic gold bearing material processed by local mining concerns in the past. The initial results showed values up to .49 oz per ton Au in the head ore; however, these findings were from very limited testing and may not be representative of the property as a whole. The results have caused us to reevaluate our drilling plans and reapply for permits to drill out and map the property. Additional funding will be required to drill the property.

Our "Phoenix Facility" processing and refining plant has recently been upgraded with a larger filter press assembly to allow for increased tonnage. The new process rate is 1,000 lbs per hour. Plans have been developed for another filter press to further increase our process rate to 2,000 lbs per hour. We will be adding an electrowinning circuit to allow efficient extraction of high silver content material. We are aggressively entering into contracts to toll process ore. One of these contracts has delivered concentrates from which we have recovered over 700 oz Au in the last two months. Income is earned as a percentage of the precious metals recovered. Our Phoenix Facility is projected to be cash flow positive within a few months.

We are also in negotiations with other mining groups, from Canada, the US and Mexico, to license our proprietary environmentally-friendly lixiviation process or to joint venture on their mining projects. If executed, these contracts will yield ongoing revenue to Royal Mines.

Combined, all of these endeavors support our overall vision of becoming a world-class exploration, technology and active mining entity.

About Royal Mines and Minerals Corp.

Royal Mines and Minerals Corp. is a minerals exploration company focused on 1) generating ongoing revenues from the licensing of its proprietary, environmentally-friendly lixiviation process, 2) commercially extracting and refining precious and base metals from its mining assets, and 3) acquiring and developing projects in North America. Additional information is available on its website at www.royalmmc.com and in its filings with the U.S. Securities and Exchange Commission.

Forward-Looking Statements

This Press Release may contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in Royal Mines' periodic filings with the U.S. Securities and Exchange Commission. When used in this news release, the words such as "could," "plan," "estimate," "believe," "expect," "intend," "may," "potential," "should," and similar expressions, are forward-looking statements. The risk factors that could cause actual results to differ from these forward-looking statements include, but are not restricted to uncertainties about the availability of additional financing, geological or mechanical difficulties affecting geological work programs, uncertainty of estimates, operational risk, environmental risk, financial risk, currency risk, dependence on third parties and other statements that are not historical facts as disclosed under the heading "Risk Factors" and elsewhere in Royal Mines' periodic filings with securities regulators in the United States. In particular, Royal Mines will require additional funding to proceed beyond the initial test and if a decision to commence commercial production is made. In addition, there is no assurance that the test discussed above will be successful or that Royal Mines will be able to achieve commercial production.

Contact Information

  • For more information contact:
    Royal Mines And Minerals Corp.
    Jason S. Mitchell
    CFO, Secretary and Treasurer
    (702) 588-5973