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El Capitan Precious Metals, Inc. (ECPN) Secures Contracts with Glencore Xstrata, Iron Ore Revenue to Fund Gold-PGM Development in New Mexico
El Capitan Precious Metals is really heating up since the kickoff of on-site mining operations back in January (Jan 6) at their flagship El Capitan project (roughly 3k acres, 100% equity interest) down in New Mexico’s Lincoln County and their strategy to use the high-quality iron ore at El Capitan as a funding ramp for mine development proved up some exceptional news today, as ECPN announced securing an ongoing iron ore purchase agreement with global diversified natural resources juggernaut, Glencore Xstrata.
President and CEO of ECPN, Chuck Mottley, wasted no time in laying out the recent project roadmap to investors, in order to characterize just how monumental a milestone this Glencore deal is. Mottley emphasized the ore mining/transport contract executed in recent weeks (Mar 3) with Texas-based Logistica US Terminals, a member of the large-scale intermodal/multimodal shipping network, LIT Group, with its massive logistics/transloading network spanning Mexico and the U.S. You pair this up with the separation prep now in place for precious metals-rich tailings at the mine (to be processed later) and the company’s fine-grinding, caustic chemical-free (and so environmentally friendly) separation method that previously showed (Dec 20, 2013) recovery as high as five times greater than cyanide leaching from the El Capitan head ore at a recovery cost of around $450 per ounce (0.6 opt Au and 1.47 opt Ag, Inspectorate America Corp. labs), and you can start to see how this latest announcement is a real “game-changer,” to use Mottley’s own words.
Glencore will provide a steady stream of revenue via Letter of Credit-guaranteed commitments under this agreement, buying iron ore on an ongoing basis from the El Capitan mine and the Logistica US hardware for the job is already en route, with operations anticipated to start inside of the next few weeks. Such positive, revenue-producing momentum as this deal represents for ECPN’s flagship site, is a real crescendo amid the concert of movements undertaken by ECPN in recent months. Among which was the appointment just last week (Mar 12) of 30-year mining sector veteran, Keith Brogoitti, to the position of COO, from which he will oversee the company’s operations in NM. Brogoitti has wide-ranging experience across the gamut in exploration and development, as well as in operations (in Mexico and Peru in particular) and has served in management at majors like Ivanhoe and Newmont, as well as being a technical consultant for big players like Asarco, BHP, and Kennecott, to name a few.
The El Capitan mine site’s rich ore is attributable to excellent geology and the deposit itself is smack in the middle of the most prominent structural intersection in NM, where an abundance of exposed tertiary intrusions are apparently underlain by a larger intrusion with even higher concentrations of heavy elements. Drilling and validation of resources at the site stretches back to work done in the early 1940's by the BLM, with small-scale iron ore production (around 250k tons) having occurred from between 1961 to 1988 and the most recent results from the company’s multi-stage diamond core, open-hole rotary, and reverse circ efforts have continued to outline the existing 141M tons of the deposit’s Measured Resources.
Take a closer look at El Capitan Precious Metals, Inc. by visiting www.ElCapitanPMI.com
