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La Yesca Mining District Moves Towards Silver Production
September 12, 2006
UC Resources Ltd.: Torreon, Coahuila, Mexico/Vancouver, British Columbia; Trading Symbol: UC: TSXV (the “Company”)
UC Resources Ltd. is pleased to provide an update regarding its La Yesca Project.
The La Yesca Project was acquired by the Company as a result of its acquisition Minera Silver Creek S.A. de C.V. in August of this year.
The Company states that it is pleased with the progress of the mill refurbishment at La Yesca to date. The Company has purchased all of the required equipment necessary to refurbish the 200/tpd plant. The equipment includes an electro-magnet, a hammer mill, an agitation tank, a cyclone, 2 thickener tanks, a ball mill and an ore bin. Additional equipment such as slurry pumps, spare motors, a belt conveyor and diaphragm pumps were also purchased. The Plant will use a copper thio-sulfate extraction process. This process is known to be more efficient for silver recoveries than other conventional processes. This process is also more environmentally friendly and will have approximately the same operating costs as the existing facility. Bulk samples and metallurgical testing from the La Yesca site have confirmed higher extraction results for silver.
Delivery of the milling equipment is expected in mid-September, and installation of the components will begin immediately upon arrival at the site. It is Management’s stated objective for production to begin at La Yesca before the end of 2006.
A work crew is currently in place and is preparing the site for the installation of the various components, and also for upgrading the existing infrastructures that are in place. Road work is being done at this moment to facilitate the arrival of the equipment and to facilitate access to the site.
The Company is currently evaluating either the leasing or the purchase of surface equipment in both Mexico and Canada, such as loaders, trucks and a backhoe for the La Yesca project. Minera Silver Creek has an import/export license regarding the purchase of mining equipment.
The La Yesca project consists of a 600 hectare mining concession which includes two previous producing mines and at least 16 known gold and silver mineral discoveries. Of more immediate significance is the approximately two hundred twenty five thousand and seven hundred fifty (225,750) tonnes of tailings that are available to be processed. UC will begin working immediately to upgrade the resource category to an indicated resource, allowing the Company to develop an economic production model.
UC Resources subsequent focus for the build-out of the La Yesca project will be the La Colorada mine, which has yielded historical silver grades between 128.4 and 555.3 g/t. UC Resources is committed to a long-term plan for the district, and intends to significantly expand its land holdings.
On behalf of the Board of Directors,
Richard J. Hamelin, President/Director
For further information:
Contact Vancouver Head Office
#1000, 355 Burrard Street Vancouver, B.C. V6C2G8 Canada
Toll Free: 1-800-366-8566 (Canada & USA)
Website: www.ucresources.net
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company’s registered filings what are available at www.sedar.com.
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