Timmins Gold Corp.

Timmins Gold Corp.

March 19, 2007 09:30 ET

Timmins Gold Corp. Announces Agreement to Acquire 100% of Past Producing San Francisco Gold Mine, Sonora Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 19, 2007) - Timmins Gold Corp. (TSX VENTURE:TMM) has reached an agreement to acquire 100% of the past producing San Francisco gold mine in Sonora, Mexico as well as the gold plant and equipment and infrastructure. The agreement provides for the purchase of the shares of the company that holds the mineral concessions and all permits and other rights associated with the property. Timmins Gold previously had an agreement to acquire a 50% interest. The San Francisco mine is a past producing, open pit heap leach operation. Operations were terminated in 2001 due to the low price of gold. For additional information on the San Francisco mine please refer to the Timmins Gold website at www.timminsgold.com. Timmins Gold has also agreed to purchase the gold plant and equipment, as well as the other infrastructure on site.

The purchase price for the mineral concessions and other rights will be USD$5,000,000 split into two equal payments with the first payment due on execution of the formal agreement and the balance due by October 31, 2007, and the issuance of ten million common shares of Timmins Gold. The purchase price for the gold plant and equipment as well as the other infrastructure will be a further USD$3,500,000 which may be paid at any time over the next three years without interest.

The shares will be subject to a voting trust agreement and a pooling agreement which allows for the release from pool in equal increments over a three year period. The vendor will have the right to appoint a nominee to the board of directors or advisory committee of Timmins Gold during the term of the pooling agreement. To date, Timmins Gold has expended approximately USD$1,700,000 on exploration and development of the San Francisco project, mainly on drilling. The purchase is subject to regulatory acceptance.

On January 18, 2007, Timmins Gold announced the independent mineral resource estimate on the San Francisco property. The estimate, completed by Independent Mining Consultants, Inc. of Tucson, Arizona (IMC), was prepared using the CIM definitions (August 2004) for mineral resources as required by National Instrument 43-101. The mineral resource, based on a US$500 per ounce gold floating cone with 64% recoveries, US$1.00 per tonne mining cost (reflecting projected owner mining costs) and 0.23 g/t gold cutoff grade is:

Ore Gold
(million Grade (thousand
Resource Classification tonnes) (g/t Au) troy oz)
Measured Mineral Resource 5.35 0.91 156.9
Indicated Mineral Resource 22.30 0.78 559.9
Total Measured + Indicated 27.65 0.81 716.8
Inferred Mineral Resource 2.51 0.79 63.5

The mineral resource estimate is based on a total of 116,000 meters of core and reverse circulation drilling from 1,133 holes completed by both Timmins Gold and previous operators, most notably Geomaque de Mexico and Fresnillo. Timmins Gold completed approximately 8,778 meters of drilling in 28 core and 43 RC holes during its 2005 and 2006 drill campaigns.

Micon International Limited, along with IMC has completed a technical report using the guidelines contained in NI 43-101, supporting the mineral resource estimate. The report has been filed on Sedar. Micon is also in charge of new metallurgical studies designed to increase recoveries.

Sol & Adobe, Ingenieros Asociados S.A. de C.V ("Sol") have been commissioned to complete a pre-feasibility study on the San Francisco project. The pre-feasibility study is currently focused on evaluating the viability of exploiting the 716,800 ounce measured and indicated and 63,500 inferred gold mineral resource on the property. While several elements of the study are nearing completion management is also assessing the viability of alternative extraction processes to improve upon historical recoveries in light of the current price environment. In addition management believes there is significant opportunity to expand the resource both in the immediate area of the current resource and in other satellite deposits and targets on the 40,000 hectare property.

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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