MEXICO – FARALLON RESOURCES of Vancouver has completed a preliminary assessment on its G-9 deposit at the Campo Morado polymetallic project in Guerrero State. The company holds 100% of the project which consists of several deposits only 160 km southwest of Mexico City.
The G-9 deposit, where mining might begin as early as mid-2008, contains a diluted inferred resource of 3.13 million tonnes grading 3.05% Au, 200 g/t Au, 1.58% Cu, 1.15% Pb and 9.69% Zn (at a 5% Zn cutoff). The operation that Farallon is considering would produce 72.45 million lb of zinc, 11.11 lb of copper, 5.21 lb of lead, 1.11 million oz of silver and 8,400 oz of gold annually. The start-up capital cost is estimated to be US$124.3 million and the internal rate of return would be 54%. Copper, lead and zinc concentrates would be smelted in Asia.
The recent study is based on preliminary engineering, capital and operating costs as of September 2007.
Visit www.FarallonResources.com to view the most recent presentation on the project posted in the investor centre on the site.