UC Resources reports that mill operations at the Company La Yesca site have been closed during the Christmas holiday season and will be kept on temporary hold in a state of care and maintenance. In the new calendar year the Company will prepare for Hard Rock mining at its Xora Concession. With reducing silver prices and the grade that exists within the tailings on site, it has been determined that a concentration on the higher grade material is the best choice for Company profitability. The Company cannot continue to consistently lose capital though arduous efforts in an attempt to get mill operations running effectively, using the existing feed at the La Yesca location. The Company has not been able to run the mill at La Yesca profitably and with poor precious metal market conditions, depressed gold and silver pricing and lower recoveries from the tailings themselves, Company focus has shifted to the higher grade hard rock material.
The Company is currently negotiating on a debt facility which would allow hard rock mining to commence on site. The Company may also pursue joint ventures to obtain hard rock mining expertise and is exploring all other options with its other properties. The Company will also look at additional financing choices and Company structure as it continues in the upcoming year. In order for the Company to operate effectively it will require additional financings this upcoming year.
UC Resources Ltd. is an active explorer and producer of precious metals in Mexico.
On behalf of the Board of Directors,
Chief Executive Officer
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This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the La Yesca properties and other future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.