VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/20/12 -- UC Resources Ltd. ("UC" or the "Company") (TSX VENTURE:UC) is pleased to provide this update to its shareholders, stakeholders and interested parties.
The Company would like to announce the completion of its upgrade at the La Yesca Mill operations with one final piece of equipment left for completion. This equipment, a specific type of diaphragm pump, has been difficult to source, but has now been sourced and ordered.
The upgrade to the La Yesca mill can be summarized with expenditures to the following areas: Heavy Equipment including mobile, Ball Mills, Tailings Pond, Power and Transformer, Mill Pumps and equipment, Supplies, Spare Parts and Lab.
With some invoicing still being completed and to be disseminated by the company, the approximate total expenditure on the upgrade is estimated to be about $400,000 and will be evidenced in the companies' financial statements.
During the upgrade because of varying degrees of operation due to the work being completed, the company was able to run various tonnes per day through the mill. The experience of this, allowed the company to reach an early opinion that the optimum run rate to achieve the highest and most consistent revenue appears to be at a pace of 160 tonnes per day. Now that the upgrade is for the most part complete, further testing will be completed to ensure no other factors weighed in on the determination that 160 tonnes per day pace is optimum. Run rate testing will continue after the rainy season is over and we are confident in our daily electrical supply.
Mid February 2012 was the actual starting time frame of the upgrade and during the period of the upgrade at the La Yesca Mill. The Company was able to produce $935,685 in revenue from partial silver and gold batches and an additional La Yesca plant estimated revenue of $171,763, which is still to be verified through the Company's smelting and recovery process. So in total, $1,107,448 revenue was generated during the upgrade period.
The intention of the completed upgrade is to move the mill into commercial production. Although the Company does not anticipate this happening until the conclusion of the rainy season, end of September, early October, the upgrades completed at the mill site will put the company in a position to do so.
On August 8th, 2012, UC Resources Head Geologist Gerardo Tarin, discovered a new hidden prospect about 80 Meters SSW, at about 90 degrees, to the Las Cuatas Mine. An ancient cobblestone trail lay buried amongst the dense vegetation and lead on and off from Las Cuatas to the previously hidden prospect. This prospect, now named La Leona by the company, is an old mine with a structure that runs E-W and has the same structural control as Las Cuatas. Previous workings at the mine appear to be at a depth of about 20 meters. Surface sampling has started and approximately 40 samples were delivered to the lab from the initial day of discovery. The Company will pursue the new prospect as it could potentially add to the company strategy to add fresh material to extend the life of the mill and enhance recovery rates.
The Company drill will be arriving on site within the next two weeks and drilling will commence at Las Cuatas and Mirador as directed by Head Geologist Gerardo Tarin. We await results on surface sampling, prior to further road construction to accommodate drilling at La Leona.
UC Resources is an active explorer and producer of precious metals in Mexico.
On behalf of the Board of Directors,
Gary Monaghan, Chief Executive Officer