Vancouver, British Columbia--(Newsfile Corp. - January 9, 2018) - Para Resources Inc. (TSXV: PBR) (WKN: A14YF1) (OTC Pink: PRSRF) (the "Company" or "Para") is pleased to announce that it has received an evaluation report from its consultant RPM Global ("RPM") on the condition of the Gold Road Mill and an estimate of the capital necessary to begin processing mineralized material once the anticipated operation of the mine begins. In addition to the mill evaluation, RPM also reviewed the project infrastructure to confirm it was sufficient to support the successful operation of the mill. Below is a summary of the evaluation:
- RPM found the mill to be in excellent condition
- The infrastructure is in good condition and is currently functional with no need for repair or upgrading
- The capital needed to return to production, including the first supply of chemicals and grinding media, is estimated to be $500,000.
- Based on historical production data the expected gold recovery is 95%
- The mill is designed for and capable of a production rate of 500 TPD
- Gold production through the mill at full capacity should be 40,000 ounces per year
- Mill operating costs are estimated to be $27.50 /ton
- Facility G&A expenses are estimated at $15.00 per Ton at full operation
Ian Harris, Para's President states, "This evaluation is an important step in preparing the Gold Road Mine for operations. The report by RPM validates the work and analysis we did in due diligence and will be an integral part of the PEA expected to be completed in Q1 2018. Using the average historical grade of 7.5 gpt, as detailed in the 2017 NI 43-101 Technical Report on Gold Road Mine, prepared by World Industrial Minerals LLC, our expected milling cost per recovered ounce of gold would be $132.00 per ounce. This estimate will be updated in the upcoming NI 43-101 Resource Estimate and PEA being prepared by RPM Global". The Company is not treating the historical resource as a current mineral resource. Please refer to the Company's 2017 Technical Report on the Gold Road Mine filed on SEDAR for additional details.
The full report: Process Site Visit Report — Gold Road Mine, Arizona, will be posted to SEDAR.
The report was prepared under the direction of Mr. Richard Addison, Principal Process Engineer with RPM Global. Mr. Addison is a Qualified Person under NI 43-101 and has reviewed and approved the technical information contained in this news release.
In addition, the Company previously announced that it has arranged a non-brokered private placement (the "Private Placement") for total gross proceeds of up to $1,000,000. The Private Placement will consist of up to 5,000,000 units at a price of $0.20 per unit (each a "Unit"). Each Unit will be comprised of one common share of the Company and one-half common share purchase warrant (each whole such warrant a "Warrant"). Each Warrant will entitle the holder to acquire one common share of the Company for a period of 18 months at a price of $0.30, subject to an accelerated expiry if the closing trading price of the Company's shares is greater than $0.40 per share for a period of 10 consecutive trading days (the "Acceleration Event"). The Company will give notice to the holders of the Acceleration Event and the warrants will expire 8 days thereafter.
ABOUT PARA RESOURCES:
Para is a junior producing gold mining company. Para owns approximately 80% of the El Limon project, in Colombia, which in addition to its current underground operation is purchasing mineralized rock mined by small artisanal miners working on the Company's property. The El Limon and OTU properties also have exploration and development upside. The Company also owns 88% of the Gold Road Mine in the Oatman District of Arizona. The Company has hired RPM Global as consulting engineers in order to produce a NI 43-101 Technical Report which it expects will establish a current Mineral Resource estimate and anticipates that it will publish a NI 43-101 PEA thereafter. Para will continue to take advantage of current market conditions to acquire and develop additional highly economic, near-term production assets that have strong exploration and development upside.
