SCOTTSDALE, Ariz.--(BUSINESS WIRE)--El Capitan Precious Metals, Inc. (OTCBB: ECPN) announced today that, based upon new test results, the Company will move forward with proposed plans for a limited-scale mining operation at the El Capitan mine site in New Mexico in support of the sale of that property.
As previously reported, the Company has been testing a method for processing the El Capitan ore that utilizes a fine-grinding and separation method which has yielded approximately five times the ore values of precious metals than a cyanide leaching process. According to ECPN CEO Chuck Mottley, “The results are dramatically different and the bottom line is that we have an environmentally friendly recovery method that delivers consistently high recovery levels for precious metals from El Capitan head ore.”
Based upon this new data—provided to ECPN by Inspectorate America Corporation, one of the world’s leading precious metals labs—the Company has initiated discussions with two groups interested in financing the proposed mining operation. The recovery results from the ore processed by Inspectorate, ore from the proposed mining site, were: .60 ounces per ton for gold and 1.47 ounces per ton for silver.
The proposed mining operation, viewed by the ECPN Board as a step that is expected to propel the sale of the El Capitan property, will generate cash flow from the sale of the iron ore that should offset a majority of the costs associated with the processing of the precious metals. The Company currently holds a 5-acre small-mining permit that will be used on patented land.
The mining and crushing of the ore and the separation of the iron from that ore is the first step in the proposed mining process. The resulting tailings will be concentrated and then sent to Phoenix for precious metals recovery and sale using a recovery method that does not involve caustic chemicals. The cost of recovery is estimated to be less than $450 per ounce.
The Company has also received the cyanide leaching data from the analytic testing of the El Capitan ore. The testing company, McClelland, has informed ECPN’s Qualified Person (QP) that “the El Capitan ore is not amenable to direct agitated cyanidation treatment.” The cyanide leaching results provided by Copper State Labs on the El Capitan ore were .12 ounces per ton of gold equivalent.
The QP will deliver an updated Major Research Report containing the cyanide leaching findings by the second week in January 2014. The Research Report, as well as details relating to the proposed mining operation and its financing, will be posted to the ECPN website.
About El Capitan Precious Metals, Inc.:
El Capitan Precious Metals, Inc. is an exploration stage precious minerals company based in Scottsdale, Arizona that is principally engaged in the exploration of precious metals and other minerals. The Company’s primary asset is its wholly owned subsidiary El Capitan, Ltd., an Arizona corporation, which holds the 100% equity interest in the El Capitan property located near Capitan, New Mexico.
Forward-Looking Safe Harbor Statement:
The statements included in this press release concerning predictions of economic performance and management’s plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements are statements that are not historical facts. Words such as “expect(s),” “feel(s),” “believe(s),” “will,” “may,” “anticipate(s)” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding the expected completion, timing and results of metallurgical testing, interpretation of drill results, the geology, grade and continuity of mineral deposits, results of initial feasibility, pre-feasibility and feasibility studies and expectations with respect to the engaging in strategic transactions. All of such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Specifically, there can be no assurance regarding the timing and terms of any transaction involving the Company or its El Capitan property, or that such a transaction will be completed at all. In addition, there can be no assurance that periodic updates to the Company’s geological technical reports will support the Company’s prior claims regarding the metallurgical value and make-up of the ore on the New Mexico property. Additional risks and uncertainties affecting the Company include, but are not limited to, the possibility that future exploration, development, testing or mining results will not be consistent with past results and/or the Company’s expectations; discrepancies between different types of testing methods, some or all of which may not be industry standard; the ability to mine precious and other minerals on a cost effective basis; the Company’s ability to successfully complete contracts for the sale of its products; fluctuations in world market prices for the Company’s products; the Company’s ability to obtain and maintain regulatory approvals; the Company’s ability to obtain financing for continued operations and/or the commencement of mining activities on satisfactory terms; the Company’s ability to enter into and meet all the conditions to consummate contracts to sell its mining properties that it chooses to list for sale; and other risks and uncertainties described in the Company’s filings from time to time with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.