UC Resources Ltd.

UC Resources Ltd.

April 20, 2007 12:12 ET

UC Resources' La Yesca Gold and Silver Mill Achieves 200 TPD Production

TORREON, COAHUILA, MEXICO and VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 20, 2007) - UC Resources Ltd. (the Company) (TSX VENTURE:UC) is pleased to report on the progress of its processing plant located at La Yesca, Nayarit, Mexico.

Over the past four weeks, the Company has undertaken some very significant and important modifications on its processing plant in an effort to significantly increase throughput and production of precipitate.

After a site visit from senior management one month ago, it was decided to change the precipitate filtration system that it was employing for a larger filter press. It was determined that the plant would have throughput volume limitations with the existing filtration system. The new filter press was commissioned early this week and regular production has started as of Monday April, 16, at a rate of 125 tons per day (tpd). It is anticipated that a serious ramp up of throughput will occur over the course of the next few weeks.

The results to date over five separate days of testing of the new application in the past month have been very encouraging. On each of the five days that tailings were processed, greater than 200 tons were processed in the working day, being about 8 hours. On one occasion, 200 tons was processed in only 5 hours. This indicates potential production of 600 tons per day, a target throughput rate that we hope to achieve. For the past month a total of 1700 tons of tailings was processed. This includes one week averaging 140 tpd, and then the five days of testing during the shutdown of 200 tpd.

The Company is also addressing some make-up water issues as a result from enhancements to the plant. Additional water tanks will be added to the processing plant, along with the damming of a nearby stream to be undertaken in the following months to ensure that sufficient water will be available to process a much larger volume of tailings than was previously planned.

Recovery rate improvements are currently being addressed as well. A large thickener tank is currently being built and it should be commissioned in approximately one month. All of the necessary components have been delivered to the site, and are being assembled now. A concrete foundation has been built to support this larger tank and is curing for another week. This component will serve to enhance recovery rates significantly. Current recovery rates remain the same at 70% for both gold and silver.

Over the next few days, the Company intends to pour its first DORE bars, and will be selling these locally to Met-Mex Penoles. Payments received for contained gold and silver will be the final acknowledgement and confirmation of recovered grades. Proceeds from the sale of the gold and silver will be used to augment working capital for UC.

States Richard Hamelin, President and CEO of UC Resources: "This mill is a state of the art facility and is the only one of its kind in Mexico. We believe that we have a good handle on the technology and I'm completely convinced that we will enjoy better performance than we had ever anticipated. Now that the filtration aspect of the process has been addressed, it leaves us only with the water issue. We felt that the time was appropriate now to make these changes, as opposed to doing this in the fall as previously planned."

UC will issue updates on Silver and Gold production at La Yesca on a timely basis as new developments emerge.

This press release has been prepared by management of UC Resources Ltd. and has been approved for dissemination by Neil Novak P.Geo. of Cambridge, Ontario, a Qualified Person under Canadian Securities guidelines, in his capacity as Vice President for UC Resources Ltd.

On behalf of the board of directors,

Richard J. Hamelin, President/Director

This 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 production, reserve potential, exploration drilling, exploitation 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 the 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. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com.

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

Contact Information

  • UC Resources Ltd.
    Vancouver Head Office
    (604) 681-7265 or Toll Free: 1-800-366-8566 (Canada & USA)
    (604) 608-6163 (FAX)
    Website: www.ucresources.net