Pueblo Project (Silver Tailings)
Contract Date – November 14, 2012
Start Date – December 3, 2012
Stage – Production
Ownership – 15% of Seller’s Net Smelter Revenue (NSR) with an option to increase NSR to 30%
Type – Small Scale Surface Mining
Extraction Process – Cyanidation
Current Capacity – 600 tons per month of tailings/ores
ABOT Mining is pleased to announce that as of November 14, 2012 it has entered into a legally binding Silver Tailings Purchase & Processing Agreement (the “Agreement”) with Rising Star Mining (“Operating/JV Partner”) that sets forth terms and conditions for purchase and production of silver tailings (“Tailings”) known as the Pueblo Project in Sinaloa, Mexico.The Company has paid advance monies and has scheduled payments to commence mobilization works for road repair and equipment maintenance. On December 3, 2012, the production trial run of 150 tons of silver tailings and ground ore left from previous production on Pueblo Project in Sinaloa, Mexico was initiated. We further plan to bring additional silver tailings and grounded ore for production by the end of this month and increase our throughput from 150 tons to up to 600 tons per month of silver tailings and grounded ore.
Contract Date – December 06, 2011 (Addendum 12.26.12)
Start Date – TBD
Stage – Exploration & Development
Ownership – 50% equity option
Type – Small Scale Surface Mining
Extraction Process – TBD
Current Capacity – TBD
Abot Mining along with Rising Star S.A. de C.V., a Mexican Corporation (“Operating/JV Partner”), plans on developing its gold, silver and copper Aztlan 8B Mining Project (“Aztlan 8B”) in the State of Nayarit in the Tecuala Mining District on the west coast of Mexico. The Tecuala Mining District is considered a widely mineralized area and identified as a major deposit of gold and other minerals.
The claim covers 300 plus acres, and is within a few kilometers of the pueblo ' Paulo Blanco '. The area around the Aztlan 8B has been extensively explored and is currently being mined by several known junior mining companies and geological institutions. According to Rising Star, past surface trench testing by others revealed deposits of placer and epithermal gold deposits, where overall bulk sample feed grade ranged from 0.20 gm/t to 39.00 gm/t. These tests were conducted across outcroppings of silicified volcanic breccias.
To the north and east of the Project, Nayarit Gold, Inc., holds extensive mining claims and is conducting core drill evaluations. Few kilometers to the south of the Project is another successful mining company, Vane Minerals Group, which has the "El Diablito" claim that has average feed grade ranged from 2 g/T Au, 200 g/T Ag (Source: www.vaneminerals.com). Further in the vicinity of the Project is US Gold, which has its El Gallo Project where only a limited amount of drilling has occurred on veins, but the results have been encouraging with measured and indicated resources of 39.8 million oz. of Ag and 550,000 oz. of Au (Source: www.usgold.com).
Abot Mining and its Mexican joint venture partner is pleased to announce that they have allocated up to 1,000 tons of Ore as an initial production test run. Subject to recovery rate results and refining cost from this production test run; Abot Mining shall increase the tonnage and frequency of the production.
Abot Mining has further received encouraging initial flotation engineering results, indicating a recovery value of 89.00% of the Au and Ag and show 2.51 ounces of Au and 19.00 ounces of Ag per metric ton. Based on these criteria, Abot Mining has contacted several mills and is in advance negotiation to finalize contract terms in order to define refining costs and to establish acceptable recovery rates for its Ore supply.
Subject to and conditioned upon availability of proper funding, Abot Mining plans to acquire various claims (gold and silver) in and around Aztlan 8 B area as recently concluded civil engineering work in February, 2012 on the Aztlan 8B Project further indicated that the mineral deposit may extend beyond the strike zone into an adjacent property to the south.
The Company has commenced preliminary negotiations with the property owner and is currently concluding its internal due diligence on documents provided by the property owner. If our preliminary analysis on this adjacent property is consistent in testing and surface sampling to the Aztlan 8B and deal terms meet our acquisition criteria, we shall immediately begin the process to add this property to our portfolio.