Timmins Gold Corp. Updated Mine Plan and Increased Production Schedule for the San Francisco Mine, Sonora, Mexico

Timmins Gold Corp. Updated Mine Plan and Increased Production Schedule for the San Francisco Mine, Sonora, Mexico

Timmins Gold Corp. announces the completion and filing of the technical report titled NI 43-101 F1 updated resources and reserves and mine plan for the San Francisco Gold Mine, Sonora, Mexico, dated November 30, 2010, prepared by Micon International Limited of Toronto (Micon). The Technical Report was prepared to update the previous technical report dated March 31, 2008 (as amended on January 13, 2009), and to provide a base case scenario for increased production at the San Francisco Mine as a result of rising gold prices and a 28% increase in the estimated mineral reserves at the mine.

Highlights: Total gold production of 539,699 ounces from 2011 to 2016, Average annual production of approximately 100,000 ounces of gold, Base case life of mine cash costs of USD 489 per ounce
Strip ratio of 1.73, Increase of crushing capacity to 18,000 tonnes per day

Commenting on the Technical Report results, Timmins Gold President Arturo Bonillas said: “The Technical Report confirms the robust economics of the San Francisco Mine. The increase in the mineral reserves at the San Francisco Mine has been obtained from the successful drilling undertaken up to June 30, 2010 and higher gold prices. The decision to increase the capacity of the crushing system to 18,000 tonnes per day by adding one more module has been derived from a number of factors including the successful startup of the mine, rising gold prices and the commensurate decrease in cutoff grade, and management’s conviction that additional reserves will be established in and around the pit as a result of the extensive drilling program planned for 2011. We are confident that the base case scenario is conservative and that we will be able to achieve lower cash costs in actual operations.”

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