Montreal, Quebec – (July 2, 2015) Cyprium Mining Corporation ("Cyprium" or the "Company") (TSX-V: CUG and CUG.DB) is pleased to announce increased production plans following the successful start of operations at the Company's 100 ton per day flotation plant located in Aldama, Mexico in May.
Mr. Alain Lambert, Chairman and C.E.O. of Cyprium stated: "In May we announced the start of our toll milling operations at the Aldama plant and the signing of two mill feed supply agreements. Following the conclusive test runs of both the stockpiles from the historic Potosi Silver mine and the mineralized material from a mine in Moctezuma, Sonora, we have decided to ramp up production from the May and June level of 1,000 tons per month to 2,000 tons per month in July. To that end, we have secured a minimum of 6,000 additional tons of the Potosi stockpiles and 2,000 tons of the mill feed from Moctezuma."
Mr. Ronald Keenan, C.O.O. of the Company added: "The Aldama plant currently has a monthly capacity of about 2,600 tons. It is one of our key operational objectives to test that capability as quickly as possible and that is why have set our production goal for July and August at 2,000 tons or better."
The Company currently holds approximately fifty tons of silver/lead and zinc concentrates ready for sale. In order to obtain satisfactory terms from a concentrate buyer and acceptable transportation costs, the Company intends to start making sales of the concentrates once the inventory reaches about 160 tons, which is expected in early August. Finally, the Company announces that it continues to make investment in the Aldama plant as announced on June 3rd, 2015 and it remains on track to double capacity by the end of September 2015.
About Cyprium Mining Corporation
Cyprium Mining looks for projects located in Northern Mexico that have a potential for profitable production in the short-term and a large exploration potential. Cyprium is committed to maximizing the potential of projects by funding exploration programs mainly through cash flows generated by production instead of funding such programs strictly through equity offering thus limiting shareholder dilution. Cyprium Mining prioritizes projects which are easily accessible and close to large urban centers.
Cyprium also has the exclusive use of a 100 metric tons per day flotation plant located twenty kilometers outside the City of Chihuahua in Northern Mexico (the "Aldama Plant"). Cyprium Mining has the exclusive use of the Aldama Plant under a five year agreement with its owner during which Cyprium will use the Aldama Plant on a variable cost basis. Cyprium will purchase mill feed for its own account and will be responsible for the supervision of all metallurgic processes, including quantitative chemical analysis, assaying of samples, determining feed grades and the sale of concentrates (see October 1st, 2014 news release). Cyprium recently announced its plans to double the capacity of the Aldama plant before the end of 2015.
Cyprium also owns 51% of Coyame Copper SA de CV ("Coyame Copper"), a Chihuahua, Mexico based mining exploration company and has an option to increase its stake in Coyame Copper to 70% for a consideration of US $1.2 million payable over a period of eighteen months following the exercise of the option. Coyame Copper's Las Cristinas Project consist of four adjacent exploration concessions (Las Cristinas, La Parrita, La Verde and La Lagrimosa) covering 684 hectares.
For further information, please contact:
Alain Lambert, Chairman and C.E.O.
Phone: (514) 219-7988
Ron Keenan, C.O.O.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward -looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company's anticipated plans for developments of the Company and its mining projects".
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding future growth, plans for and completion of projects by Company's third party relationships, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of Company's anticipated projects, delays or changes in plans with respect to the development of Company's anticipated projects by Company's third party relationships, risks affecting the ability to develop projects, risks inherent in operating in foreign jurisdictions, the ability to attract key personnel, and the inability to raise additional capital. No assurances can be given that the efforts by the Company will be successful. Additional assumptions and risks are set out in detail in the Company's MD&A, available on SEDAR at www.sedar.com.
Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law. Investors should note that, while the mineralized material being processed by the Company is assayed, there is no certainty that the proposed operations will be economically or technically viable. Investors should also note that the Las Cristinas property has no established mineral resources or mineral reserves as defined by NI 43-101. Although Cyprium Mining may make production decisions regarding the Las Cristinas property based on historical production records, results of sampling and drilling, a feasibility study of its projects has not been completed and there is no certainty that the proposed operations will be economically or technically viable.