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| | Tue Jul 10, 2007
ROCA - MAX Molybdenum Mine Development Update
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| | Vancouver, British Columbia: Roca Mines Inc. (ROK: TSX-V) ("Roca" or the "Company") provides the following update on development and exploration activities at the MAX Molybdenum Project southeast of Revelstoke, British Columbia.
Development of the MAX Molybdenum Mine has advanced significantly in the past two months with initial production now targeted to begin in approximately six weeks. Roca began its fast-tracked development of the project only 14 months ago and the Company's contractors have met numerous construction milestones in many areas, including;
Underground Development - Development of the decline and 25 metre (m) sub-levels now provides access to the upper stopes. Ongoing development work will provide access to lower stopes for subsequent phases of mining. An electric-hydraulic long-hole production drill will be mobilized to site on July 18, 2007 to commence production drilling of the initial stopes. Ore from these stopes will be available soon after commencing long-hole drilling.
Crusher / Mill & Concentrator - All of the heavy equipment, including; crushers, feeders, primary grinding mills, regrind mill and thickener tanks have been installed and are being wired to electrical controls. All of the large motors and electrical systems have been delivered to the site after inspection, repair and testing previously conducted off-site. Where required, new liners, bearings, motors and other items are also being fitted prior to startup. The mill and crusher buildings' structural steel has been erected and cladding will be applied shortly. Galleries between the various buildings are being completed prior to the installation of conveyors.
Temporary Construction Camps - The Company has purchased and recently completed the installation of a second construction camp providing more flexibility for housing of its staff and contractors.
Key areas of the project that remain to be completed include the following;
Electrical Systems Installation - An electrical power distribution system for the MAX mine and mill is being completed allowing for load-sharing and efficient power usage from three new 1,000 kW (each) diesel gensets. The crusher and mill buildings are being readied for internal power distribution to equipment and lighting.
Tailings Facility - After producing and stockpiling various crushed borrow and rockfill materials for the past four months, construction of the main (south) dam is now well underway. Excellent weather conditions have aided in the organization and placement of the dam materials. Starter dam elevations will be completed prior to the targeted production date. Ongoing dam construction will progress to an ultimate 2007 dam height by early fall.
Accelerated Phase II Development - The development of a second parallel adit (tunnel) to the deposit is well underway. The second access will immediately improve ventilation and lower operating costs of the underground mine. The adits will also provide primary access for long-term development and planned expansion phases of the MAX Mine.
The Company has also acquired an additional ball mill, currently located in Spokane, Washington, for future expansion of the mill's grinding circuit. This unit, a Harding 9.5 X 15, 700 hp ball mill will be installed after production startup thereby providing flexibility and additional capacity for the operation of the mill.
MAX 2007 Exploration Programs - The Company has completed the development of an underground drill station from which a new exploration program will be conducted. A diamond drill will be mobilized to the site in approximately two weeks to carry out an exploration program that will focus on expanding the known molybdenite resource at depth.
Roca plans to be the first new primary molybdenum producer in Canada. The permitted PHASE I mine plan for MAX will focus on the deposit's high-grade zone containing 280,000 measured and indicated tonnes grading 1.95% MoS2 (refer to T.N. Macauley's 43-101 compliant technical report dated September 2004 available via SEDAR). Molybdenum currently trades in the US$32 - 33/lb range and is a key alloy in the manufacture of stainless and specialty steels, including pipelines and other energy-related steel infrastructure.
Property Acquisition - The Company recently signed an option agreement to acquire a 100% interest in 513 hectares contiguous with its Tin City Property (see Company news release dated Dec. 1, 2006). Roca has paid the vendor $12,300 on signing and, to complete the acquisition, must pay an additional $100,000 and issue 50,000 common shares prior to June 5, 2009. The property is subject to a 2.5% Net Smelter Return, which may be reduced to 0.5% upon payment of $1.5 million. This transaction is subject to TSX Venture Exchange approval.
ROCA MINES INC.
"Scott Broughton"
Scott E. Broughton, P.Eng. -- President & CEO
For further information contact:
Doug Fosbrooke
Investor Relations
Tel: 604-684-2900
Fax: 604-684-2902
Email: [email protected]
Web: www.rocamines.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. |
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