Metalline Mining Company Announces Progress on Feasibility Study
March 25 2008 - 1:04PM
PR Newswire (US)
COEUR D'ALENE, Idaho, March 25 /PRNewswire-FirstCall/ -- Metalline
Mining Company (AMEX:MMG) announces progress on its feasibility
study on the Sierra Mojada project. Metalline President Merlin
Bingham said, "Metalline management is very pleased with the
progress that is being made on moving the definitive feasibility
study towards completion." Late in the week of 2 March, 2008,
Metalline Mining Company executives met with engineers from its
lead consultant, Green Team International, to review and evaluate
the results to date of activities on the feasibility study for
exploitation of the oxide zinc resource at Sierra Mojada, Coahuila,
Mexico. Mining Plan. Currently, the mine plan projects an
underground mine with a daily production rate of a minimum of 3,000
tonnes (metric tons) per day (tpd), and a minimum 17-year mine
life. The plan, prepared by engineers at Pincock Allen and Holt
(PAH), evaluated both open pit and underground mine alternatives.
The open pit alternative was rejected due to very high stripping
ratios and both high operating costs (opex) and high preproduction
stripping capital costs (capex), costs much greater than for the
underground mining alternative. Underground mining would use a
long-hole end-slice panel stoping method to perform high-volume
relatively low-cost mining. The method selected is governed by the
geotechnical study on rock strength and operational considerations
such as capital costs, operating costs, production rate and mine
life. PAH engineers have strongly recommended a test mining program
to confirm the planned mining method and validate the geotechnical
data. The first phase of the test mining program is recommended to
consist of driving the production decline to the selected test mine
area near the center of the resource and constructing initial
access development workings to the test area. The second phase
would involve test mining. The Board of Directors of Metalline has
carefully reviewed the PAH recommendations and has directed
management to prepare for the test mining program. Management has
requested that PAH prepare a test mine proposal of sufficient
detail to enable the proposal to be presented to contractors for
bidding the project. Metallurgy and Concentrator. A second large
and representative bulk sample, selected from within the volume of
mineralized material used in our resource model, was obtained in
late 2007 and shipped to Johannesburg, South Africa. The material
is being processed at Mintek laboratory to confirm the results of
previous metallurgical studies and to provide a volume of
concentrate for evaluation and testing. Additional testing will be
done on samples containing 7 to 10% zinc, the range of values
representing the average grade of run-of-mine material indicated by
block models and mining studies, in order to more accurately
estimate the recovery and concentrate expected from such material.
Metallurgical studies on silver recovery indicates that silver in
the zinc oxide materials report to the concentrate with better than
80% recovery of the contained silver. A resource model of the
silver distribution in the oxide zinc material is being expedited
to help determine whether recovery of by-product silver is
economically justified, and various methods available to recover
silver from the concentrate continue to be studied. Economic
Models. We are evaluating several economic models to determine the
most effective way to exploit the deposit. Two of the models
involve construction of a zinc refinery to treat concentrates from
Sierra Mojada. The third involves sale of concentrate to existing
third party refineries. The third option involves a much smaller
capital expenditure and is attractive if satisfactory treatment
charges can be obtained. Some of the concentrate currently being
produced at Mintek will be used to evaluate this option. The
results of the economic models are attractive given the current
level of precision (plus or minus 20-30%) of study results. Future
Work. The mine and concentrator studies are continuing to greater
levels of detail so that cost estimates can be improved to the
level of precision required for a definitive feasibility study
(plus or minus 10-15%). Discussions will be held with potential
concentrate buyers to determine whether a market for Sierra Mojada
concentrate exists on terms that are attractive to us and
competitive with the refinery options. Methods for improving the
concentrate grade are being investigated together with methods to
recover by-product silver. The Company is continuing to evaluate
the high-grade silver potential located north of and adjacent to
the oxide zinc mineralization to determine whether mining of both
mineral systems can be conducted. Metalline Mining Company is an
exploration stage enterprise engaged in the business of mining. The
Company currently owns mining concessions in the municipality of
Sierra Mojada, Coahuila, Mexico. The Company conducts its
operations in Mexico through its wholly owned Mexican subsidiaries,
Minera Metalin S.A. de C.V. and Contratistas de Sierra Mojada S.A.
de C.V. To obtain more information on Metalline Mining Company,
visit the Company's web site (http://www.metalin.com/).
Forward-Looking Statements This news release contains
forward-looking statements regarding future events and Metalline's
future results that are subject to the safe harbors created under
the Securities Act of 1933 (the "Securities Act") and the
Securities Exchange Act of 1934 (the "Exchange Act"). These
statements are based on current expectations, estimates, forecasts,
and projections about the industry in which Metalline operates and
the beliefs and assumptions of Metalline's management. Words such
as "expects," "anticipates," "targets," "goals," "projects,"
"intends," "plans," "believes," "seeks," "estimates," "continues,"
"may," variations of such words, and similar expressions, are
intended to identify such forward-looking statements. In addition,
any statements that refer to projections of Metalline's future
financial performance, Metalline's anticipated growth and
potentials in its business and other characterizations of future
events or circumstances are forward-looking statements. Readers are
cautioned that these forward-looking statements are only
predictions and are subject to risks, uncertainties, and
assumptions that are difficult to predict, including those
identified elsewhere herein and Metalline's Annual Report on Form
10-KSB for the fiscal year ended October 31, 2007 under "Risk
Factors." Therefore, actual results may differ materially and
adversely from those expressed in any forward-looking statements.
Metalline undertakes no obligation to revise or update any
forward-looking statements for any reason. DATASOURCE: Metalline
Mining Company CONTACT: Merlin Bingham of Metalline Mining Company,
+1-208-665-2002, or fax, +1-208-665-0041, Web site:
http://www.metalin.com/
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