VANCOUVER, British Columbia
March 14, 2013
Pan American Goldfields Ltd. (OTCQB: "MXOM") (the "Company")
is pleased to report the results of a comprehensive metallurgical testing program performed on samples from its 80% owned
. In addition, the Company also wishes to report the results of an updated mineral resource estimate incorporating the results of the metallurgical testing along with estimated mine and plant operating costs. The
project is currently being operated on a pilot basis under an agreement between the Company and Minera Rio Tinto ("MRT"), a private Mexican company, with the Company receiving 35% of net cash flows until
2013. Further pilot production is contemplated into 2014 concurrent with the preparation of a planned definitive feasibility study examining a full scale commercial operation.
A total of approximately 1,850 kgs. of metallurgical samples were collected from the
site from 22 separate core holes. The holes and intervals selected all come from the predominant mineralized host rock type (altered diatreme breccia) and covered the extent of the deposit both in area and at depth. All samples were un-oxidized and contained about 4% total sulfur. The samples were composited into three samples based on gold and silver grades (Low Grade, Medium Grade and High Grade) with each composite weighing about 600 kgs. All of the metallurgical testing has been performed at Resource Development Inc. ("RDi") of
Wheat Ridge, Colorado
under the supervision of Dr.
Head assays of the three composite samples are as follows:
Low Grade ("LG") Comp. Medium Grade ("MG") Comp. ("HG") Comp.
Au g/t 0.226 0.535 2.798
Ag g/t 34.6 47.1 72.8
Pb % 0.37 0.24 0.38
Zn % 0.63 0.36 0.44
The primary metals of economic interest are gold and silver, and the metallurgical testing program was focused on maximizing the recovery of these two precious metals. Testing was performed on all three composites to understand how the metallurgical results might change with varying grades.