Name of the Project
San Francisco gold project.

Location
Sonora state, Mexico.

Client
Timmins Gold.

Project Description
Timmins Gold has completed a new Canadian National Instrument 43-101-compliant technical report on its San Francisco gold mine and an associated mine plan extending the mine life to 2023. The new mine plan incorporates more than two years of new exploration, infill and production drilling data, a reinterpretation of certain phases of the deposits, and mining and process engineering optimisations.

According to the plan, 2016 production is expected to total between 90 000 oz and 100 000 oz of gold at a cash cost of $750/oz to $800/oz.

In 2017, the company expects to produce between 65 000 oz and 70 000 oz of gold at a cash cost of $900/oz to $950/oz.

During 2018, Timmins expects to produce between 80 000 oz and 85 000 oz of gold at a cash cost of $1 000/oz to $1 050/oz.

Despite lower processing and production rates from 2019 onwards, the associated design and mine plan have resulted in the lowest all-in costs and the highest margin for the mine life.

The lower grades and higher strip in 2019 and 2020 are offset through reduced unit mining and unit processing costs, keeping cash costs favourable. Unit mining costs starting in 2018 will benefit from significantly reduced haulage distances and, later on, backfilling scenarios, Timmins has noted.

Unit processing costs, from 2019 onwards, will benefit from lower throughputs (anything less than or equal to 16 000 t/d).

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Total capital expenditure in 2016 is estimated at $4-million; at $4-million in 2017; and $2-million in 2018.

Duration
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Timmins Gold, tel +1 604 682 4002, fax +1 604 682 4003 or email info@timminsgold.com.