Karmin Exploration fka KAR

[gharma]

News: Karmin Announces Aripuanã Development Schedule
Date : 04/11/2013 @ 8:00AM
Interesting that it is not yet on BusinessWire or company website presently, so like to the iHub copy
http://ih.advfn.com/p.php?pid=nmona&article=57119521&symbol=TSXV:KAR

I suppose this will force their hand to start planning on what to do about their gold/silver rights in the oxide layers.

Karmin Exploration Inc. (“Karmin”) (TSXV and the Lima Stock Exchange: KAR) is pleased to report that Votorantim Metais (“Votorantim”) has announced a preliminary development schedule for Karmin’s 30% owned Aripuanã Zinc Project (“Aripuanã”) which has estimated measured and indicated mineral resources of 19.1 million tonnes plus inferred mineral resources of 14.7 million tonnes as disclosed in Karmin’s press release dated February 21, 2013.

Votorantim, 70% owner and operator of Aripuanã, has also announced the ongoing internal pre-feasibility study of Aripuanã will be completed in the second quarter of 2013. The pre-feasibility study is studying the possible development of a mine producing 1.2 million tonnes of ore per year (3,300 tonnes per day) starting in 2016. If developed, it is expected that the processing plant would produce 60,000 tonnes per year of zinc in concentrate, 20,000 tonnes per year of lead in concentrate and 6,000 tonnes per year of copper in concentrate. Votorantim has indicated that the current estimate of capital costs are in the order of $250 million. The commencement of an internal feasibility study on Aripuanã is proposed for the second half of 2013 to further evaluate the development of Aripuanã with completion of the feasibility study by the end of 2014.

Subject to the outcome of the feasibility study, it is currently expected that construction at Aripuanã could start early in 2015 with completion projected 18 months later in 2016.

Karmin has a 30% carried interest in Aripuanã and is not required to contribute to the project costs until 12 months after the completion of a bankable feasibility study. Since 2004 over US$35 million has been spent on the evaluation of Aripuanã by Votorantim.

Various government agencies in Brazil have announced a comprehensive highway construction program, costing approximately $750 million, for paving many of the roads in the State of Mato Grosso where Aripuanã is located. This highway construction program will include a state highway to the town of Aripuanã and the building of a modern bridge over the Aripuanã River giving excellent road access directly to the Aripuanã Zinc Project. A newly constructed 261 MW hydro electric facility located 20 kilometres from the Aripuanã Zinc Project provides abundant electrical power to the area.

David Brace, Karmin’s CEO stated, “Votorantim is progressing very rapidly on the evaluation of the Aripuanã Zinc Project and combined with the paving of the roads to Aripuanã we are very optimistic that Aripuanã will be developed to replace the zinc production that will be lost due to mine closures over the coming years."