Timmins Gold Corp.

Timmins Gold Corp.

October 09, 2012 06:30 ET

Timmins Gold Reports Record Production of 25,153 Ounces of Gold and 13,857 Ounces of Silver During Q3 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 9, 2012) - Timmins Gold Corp. (TSX:TMM)(NYSE MKT:TGD)(NYSE Amex:TGD) is pleased to report record production of 25,153 ounces of gold for its Q3 2012 fiscal quarter ended September 30, 2012. Timmins Gold also produced 13,857 ounces of silver during the quarter.

During Q3 2012 a total of 40,490 ounces of gold were placed on the heap leach pads, compared to 35,282 ounces of gold in Q3 2011, a 14.76% increase. Gold produced during Q3 2012 reached 25,153 ounces, compared to 16,917 ounces in Q3 2011, an increase of 48.69% and 23,203 ounces in the previous quarter (Q2 2012), an 8.4% increase. The number of gold ounces placed on the pads is scheduled to increase during the rest of the year as the mine continues its expansion. Timmins Gold maintains its production target of 100,000 ounces of gold during 2012.

The increased production in Q3 was achieved as a result of improvements in process and commitment to our expansion plan, which was initiated late last year. Modifications to the existing crushing circuit, changes in our blasting patterns and optimization of our heap leaching process are producing results.

The following are some key production statistics for Q2:

Category July-Sept
% Change
Ore Placed on Pads (dry tonnes) 1,420,414 1,364,290 4.11%
Average Grade (g/t Au) 0.887 0.804 10.23%
Low Grade Stockpiled 842,973 671,185 25.59%
Average Grade Stockpiled (g/t Au) 0.229 0.276 -17.21%
Waste Mined 4,210,428 5,097,293 -17.40%
Total Mined (tonnes) 6,476,932 7,128,270 -9.13%
Strip Ratio 1.86 2.51 -25.90%
Gold Ounces Placed on Pads 40,490 35,282 14.76%
Gold Ounces Produced 25,153 17,287 45.50%
Gold Ounces Sold 25,153 16,917 48.69%
Days 92 92 0.00%
Average Ore Processed (t/d) 15,439 14,829 4.11%
Total Mined (t/d) 70,401 77,474 -9.13%

"We would like to congratulate our President Arturo Bonillas and his operating team for achieving our target of 25,000 ounces for the quarter," stated Bruce Bragagnolo, CEO of Timmins Gold Corp. "The strong operating quarter was the result of a number of incremental process improvements. Completion of Stage 2 of our crusher expansion is expected to take us to over 22,000 t/d in Q4, and crushing capacity is scheduled to reach over 30,000 t/d early in 2013 as we continue with our expansion program. We continue to fund all of our operations, expansion and drilling from existing cash flows, and we believe that we are well positioned to continue realizing current gold prices, generating strong margins and increasing cash flow from operations."

About Timmins Gold

Focused solely in Mexico, Timmins Gold Corp. is in commercial gold production at its wholly owned San Francisco gold mine in Sonora, Mexico. The mine is an open pit heap leach operation. Timmins Gold has forecast production at a rate in excess of 100,000 ounces of gold per year. (Micon International NI 43-101F1 Technical Report dated November, 2011).

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