PHOENIX, AZ - SEPTEMBER 14, 2022
PHOENIX, AZ – September 14, 2022--(GLOBE NEWSWIRE)—Tombstone Exploration Corporation (OTCQB:TMBXF), a fully reporting U.S. based mining company, announced today estimated forecast cash flow from Phase Two Production based on current test results for the Bonanza Harquahala Mine.
Plan Moving Forward
The next phase will process the tailing and the remaining waste rock, as agglomerated product. The lab tests have shown that agglomerated tailing/waste rock gave very “fast” leaching. Lab results show average recovery of 50% of Au within two weeks.
For a “fast” leach:
· 50,000 tons per month
· At grade of 0.035 opt Au
· With recovery of 50%
· The recovered gold would be 875 oz Au per month for twelve months suggesting 10,500 oz of Au.
There are total of 500,000 tons available for processing. In this scenario, within a year all 500,000 tons will be crushed/agglomerated, and the process will recover 10,500 oz Au.
With the updated information from KCA lab results, we can see the following scenario unfolding as we move forward with fast leaching and the head grade of 0.035 opt:
· As we crush/agglomerate/stack, at a rate of 50,000 tons per month (or 12,500 tons per week).
· If we continue this for ten months…
· And put fresh material on sprinkler every week…
· The operation will ramp up on recovery of gold at 433 oz for the first month followed up by 693 oz on thesecond month and peak at production of up to 875 oz for ten months and then taper off for last two months, as the heap becomes depleted.
· This would also mean moving of loaded carbon every week, which would contain over 200 oz, which would be sent to Metals Research for refining.
· This would give a steady inflow of revenue on a weekly basis of about $370,000 per week for eight to twelve months.
Richard Moores, President of the Bonanza Mining Company, stated in discussions with TMBXF, “Based on averagegrade, used in the estimated model in the Technical Report, but without high-grade stacked first due to movement of material during previous ops, and assuming 50k tons crushed and stacked per month, pretax cashflow after a month's delay for startup and initial heap less monthly stacking and op costs should be about $1.2-1.4 million per month at$1700/oz Au; to this should be added contributions from post-flush recovery. This assumes ~60% flush of gold stackedin first two weeks of leaching, followed by average 5% per month trailing production thereafter for approximatelyfour months and could add up to $300-500k/month after several months.
This could continue flush for approximately eight to ten months, depending on how much material is utilized/misplacedduring construction and prior ops. Stacking/flush production could continue for ten months, followed by tailing off forseveral months thereafter, so overall cash margin from ops could be in the $12-18MM range, if all bears out.
Recent metallurgical test results are in line with previous testing by others, including Continental. By stacking properlycrushed and agglomerated material we can anticipate an initial surge of production of ~40-60% of contained gold the first ten days or so under leach, with the balance trickling out over several months. Implementing a continuous program of stacking and leaching, we should experience an ongoing stream of surges, creating a plateau of rapid recovery untilall material has been stacked, followed by an extended period of slowly decreasing offtake.”
Kiedoch Kim, Bonanza’s Process Manager, said, “For the last three months, samples of tailing and waste rock were sent to Kappes Cassidy Associates (KCA) in Reno for confirmation test of the Goldrock Resources (PEA 2017) test work.
Goldrock Resources Internal Non 43-101 technical report PEA 2017:
· Assayed head grade between 0.046 opt, 0.067opt, & calculated head grade of 0.117 opt Au.
· With recovery of 82.9% to 88.1%.
· The leach rate was fast with majority of recovery done within 20 days. KCA (2022):
· Assayed head grade was between 0.034 opt and 0.046 opt Au.
· With recovery of 30% and 70% with average of 50%. The leaching was continuing at the last update.
· The leach rate was fast with recovery of 50% average at two weeks.
The confirmation test work by KCA was able to confirm the fast leach rate.”
The Bonanza Mine property includes the Harquahala and Golden Eagle mines, located approximately eight miles south of Salome, Arizona. The project totals 2,656 acres and has significant potential for gold and silver production in multiple phases moving forward. The Bonanza Mine is located where the Prolific Walker Lane and the Sonoran Geosyncline overlap with likely extensions of Carlin Trend and Mesquite-style mineralization generating Arizona’s biggest richest deposits.
About Tombstone Exploration Corporation
Tombstone Exploration Corporation is a gold, silver and copper exploration & mining company based in Phoenix,Arizona. The Company’s goal is to maximize shareholder value through focused exploration, testing and development of high-quality mineral targets in the prolific mineral producing areas in the Southwest United States. This goal will beachieved through the application of the best mineral exploration practices and techniques available, including the adherence to the highest possible standards of corporate responsibility, governance and conduct.
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of theSecurities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Thesestatements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Tombstone Exploration Corporation, its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words “may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements.Investors are cautioned that any such forward- looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are Tombstone Exploration Corporation’s ability to control, and actual resultsmay differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Tombstone Exploration Corporation’s filings with the Securities and Exchange Commission.
Tombstone Exploration Corporation Alan M. Brown, President & CEO Phone: 480-588-8920