Del Toro Receives First Royalty Payment From Gold Production at the Nick Mine
CARSON CITY, Nev., Aug. 18, 2015 (GLOBE NEWSWIRE) -- Del Toro Silver Corp. (PL:DTOR) ("Del Toro" or the "Company") is pleased to announce that it has received the first royalty payment from gold production at the Natchez Pass Gold Property (AKA the "Nick"). Del Toro owns a 5% Net Smelter Royalty ("NSR") on gold production at the Nick mine, and will receive 5% of the net proceeds from any sale of the Nick to a third party, with a $300,000 minimum return from such sale.
Natchez Pass LLC conducted limited placer mining operations during the month of July which produced 23.74 troy ounces of placer gold. Del Toro received 1.19 troy ounces of placer gold for its 5% NSR payment. Mining efforts were intermittent and focused on bulk sampling of test trenches. Several bulk samples showed placer gold grades greater than 10 grams per cubic yard. Issues with the water supply and feed system on the wash plant limited the processing to below 10% of monthly capacity and resulted in less than optimal gold recovery. Operations at the mine have been temporarily suspended to address the wash plant issues and further develop a mining plan based on the results of the testing.
Del Toro CFO Patrick Fagen states, "Receiving the first royalty payment from the Nick is an important milestone achievement for Del Toro. We chose to take our royalty in gold to memorialize the first production. While the royalty was modest, it demonstrates the commercial viability of the deposit and the potential for a future steady and material royalty revenue stream. The bulk testing results have been very promising and once the processing issues can be addressed, we expect to see more consistent production at the mine."
About Del Toro Silver Corp.
Del Toro Silver Corp. is a precious metals exploration and development company based in Carson City, Nevada. Del Toro's corporate strategy is to focus on the acquisition and development of high grade, near term production gold properties in California and elsewhere in the Western United States. Management believes that this promising niche market offers many opportunities that have been largely ignored or overlooked by competing junior gold companies.
For further information, please contact Greg Painter at 775-782-3999.
On behalf of the Board of directors,
"Patrick A. Fagen"
Notice Regarding Forward-Looking Statements:
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this news release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, addressing the wash plant and processing issues, development of a mining plan, the existence of commercially viable deposits on the property, potential for future royalty revenue stream, and any future production that may be achieved or any revenue that may be generated by the Company as a result of the NSR.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the 2013 fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.