ZARUMA RESOURCES INC
Zaruma Resources reports on First Quarter 2007
5/11/2007
TORONTO, May 11, 2007 (Canada NewsWire via COMTEX News Network) --
(in United States dollars)
Zaruma Resources Inc., (TSX-ZMR) today reported on its activity for the three months ended March 31, 2007. The quarterly report to shareholders will be available later today on SEDAR, www.sedar.com and on the Company's website.
As reported on April 27, the Company successfully completed four months of additional geological modelling and metallurgical testing since the filing of the Technical Report on the feasibility of the wholly owned Luz del Cobre copper project, San Antonio, Sonora, Mexico, on November 10, 2006. The ore body was methodically reviewed to determine whether the model of the deposit created in 2006 could be further optimized. The ore body was found to be open ended to the South, (not included in the reserves), and some material at the bottom of the pit will likely have a lower than average leach recovery.
New trenches in near surface oxidized copper mineralization, and historic underground workings were re-opened, geologically mapped and sampled. Six more column leach tests of oxidized and mixed material from different locations in the ore body, plus bottle roll tests and 307 sequential copper analysis tests of drill pulps from the 2006 verification drilling and from current surface and underground samples were carried out.
The new information has confirmed the parameters used in the 2006 Technical Report, and is being used for operational mine planning, but has not changed the overall plan for the project, to produce 15 million pounds of cathode copper per year for an initial five years, through an open pit mining, heap leach, solvent extraction, electro-winning operation. The 2006 Report projected an average annual cash flow from operations of $19.4 million assuming a copper price of $2.235, and a project capital cost of $24.4 million. The trailing 24 month average copper price in April was $2.51 per pound, which represents a revenue increase of $4 million per year.
The emphasis now is on the financing of the project.
Costs incurred in the quarter on the Luz del Cobre project totaled $415,000 compared with $175,000 in the first quarter of 2006.
The net loss for the period was $392,000 compared to $436,000 in the first quarter of 2006, including exploration and project evaluation costs written off. The loss per share is $0.004 and $0.006 per share, respectively.
Zaruma Resources Inc. is a pre-production mineral exploration company listed on The Toronto and Frankfurt Stock Exchanges (symbol: ZMR). Common shares outstanding: 102,781,912.
This News Release contains forward-looking statements which are typically preceded by, followed by or include the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions, including, but not limited to securing additional funding to continue its development programs.
SOURCE: Zaruma Resources Inc.
Zaruma Resources Inc., 20 Toronto Street, 12th Floor, Toronto ON, M5C 2B8, Canada, Fax: (416) 367-3638, info@zaruma.com, www.zaruma.com; Dr. Thomas Utter, President and CEO, Tel.: (416) 777-1781, thomas.utter@zaruma.com; Frank van de Water, CFO and Secretary, Tel.: (416) 869-0772, fvandewater@on.aibn.com
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ZARUMA RESOURCES INC
Top Of Our Radar: Zaruma Resources Announces Financing
6/22/2007
Jun 22, 2007 (M2 PRESSWIRE via COMTEX News Network) --
Market Gainer is quickly emerging as the one stop shop for international small-cap investors looking to stay a step ahead of the markets. Activity on the Toronto market has brought this company to the attention of our research team. Zaruma Resources Inc., (TSX-ZMR), is responding to the attention of investors. Our goal is to create a community of international investors who consistently and effectively capitalize on the enormous gains the small-cap Canadian and American exchanges offer.
June 20 - Zaruma Resources Inc., (TSX-ZMR) is pleased to announce that in recent discussions with Glencore International AG, Glencore confirmed its intent to provide US $22 million as debt financing for the capital requirements of the Luz del Cobre copper project, and also confirmed its interest in participating in the proposed copper exploration program on the 9,764 hectare property, which includes the Trion area, 1000 metres to the west of Luz del Cobre, where a previously undefined oxide copper target zone has been delineated. In consideration of Glencore's provision of the loan, and financing the exploration and development of Trion, Glencore shall have the right to offtake 100 per cent of all base metal production from Luz del Cobre and Trion, based on London Metal Exchange market prices.
Zaruma is committed to fund any capital cost overruns and will source the remaining estimated amount of the project cost, estimated to be US $3 million.
The Technical Report on the project, in compliance with NI 43-101 standards, was filed in November, 2006, indicating estimated reserves of 4.4 million tonnes of ore with an average grade of 1% Cu, and based on producing 15 million pounds of copper per year, the pre-tax net operational cash flow was estimated to average US$19.4 million per year. Adjusting the projected price of copper to a more recent trailing average price over 24 months of US$2.51 would add over $4 million the annual cash flow.
The project capital cost is currently estimated at US$25 million, and the estimated time to first production is 12-15 months from the date an engineering, procurement and construction management ("EPCM") contract is awarded. Cost estimates will be more accurately defined as the engineering and procurement work proceeds.
The selection of the EPCM contractor will be done while the legal agreements on the financing are being completed.
At today's Annual Meeting of Shareholders, the directors proposed by management for election, Peter Lorange, Michael Power, Michael Richings, Thomas Utter and Frank van de Water were re-elected.
Zaruma Resources Inc. is listed on The Toronto and Frankfurt Stock Exchanges, (symbol: ZMR). Common shares outstanding: 108,296,912.
At the time of writing shares are up 17% to $0.16 with over 6 million in volume. The Market Gainer Research Team will continue to gauge the short and long term affects that this announcement will have on the company
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