HENDERSON, Nev., Dec. 07, 2017 (GLOBE NEWSWIRE) -- Firma Holdings Corp. (OTC PINK:FRMA) (the “company”) is pleased to provide a corporate update.
Gracepoint Mining (Subsidiary)
Don Roman Project, Choix, Mexico
The project, consisting of 10,000 hectares of mineral claims, hosts over 80 known structures, and includes a 3 Circuit 360 tonne (estimated) per day flotation mill centrally located to the structures and about 100 meters off of a government paved road. In addition, 80% of the known structures are accessible by existing road infrastructure.
The company has recently entered into a Profit Participation Agreement with a third party to fund the refurbishment of the flotation mill and the development of the Rosario zinc-lead-silver mine that has had historic production. The agreement calls for an investment of a minimum of $250,000 and a maximum of $600,000 to earn an expected 10% net cash flow interest.
Currently, the project has been funded and work has begun to refurbish the plant, which includes, but is not limited to the refurbishment, repair, or construction of: ball mills, flotation cells, a water storage, tailings pond, electrical components, an assay lab, sleeping quarters, and other ancillary assets. Initially, we will target the Rosario vein structure, which has been historically mined, and can be followed on strike for a minimum of 5 kilometers. Development work has begun at the Rosario mine site, including the cleaning up of the existing mine tunnels and developing a hauling road between the mine and the plant.
The initial objectives are to complete sampling of the existing tunnels and the subsequent mining of Rosario vein structure. The near term plan will be to assay the existing blocks, ceilings, floors, and walls of the tunnels, along with exploring the structure along strike.
Based on the results received from the initial sampling program, a decision will be made as to whether to proceed with a campaign to process a bulk sample. The information gained from processing the bulk sample, which will include head grades, initial recovery rates, and operating costs, will allow a more defined near term and mid term project development strategy. It is the objective of the contractor to have the mine producing and the plant able to process and produce concentrate before the end of December 2017, subject to the customary risks associated with such projects.
The company has limited technical information on the mine, but based on what is known of its recent history and the low capital cost needed to reach production, the business risk is believed to be merited. The company is also in the process of engaging a Certified Professional Geologist (CPG) as a qualified professional (QP) to complete an initial “NI43-101” report on the Don Roman project. It is the intention of the company to bring the project into compliance with “NI43-101” standards.
Saucillo Project, Concordia, Mexico
The company has also recently entered into a Profit Participation Agreement with a third party to fund the acquisition of a new project named Saucillo, located in Concordia, Mexico. The property in approximately 100 hectares in size and hosts at least one silver / gold vein structure.
The agreement calls for an investment of $275,000 dollars to earn a 10% net cash flow interest. All $275,000 has been received, with $200,000 being used to purchase the property and the balance going towards the development of the mine and the production of a 300 tonne bulk sample. Although sampling to date has shown encouraging results, it is the desire of the investor and the company to take an aggressive strategy to see if the material shows metal values, capable of being economic by means of processing the 300 tonne bulk sample through a third party processing facility.
Based on the results of the bulk sample, decisions will be made as to whether future work is warranted and if so, there will be a more defined plan developed.
Magistral Project, Durango, Mexico
The Magistral project, which is managed as a 50/50 Joint Venture with MX Gold, is nearing completion on the construction of a Meryl Crow recovery plant with estimated throughput capacity of 1,000 tonnes per day.
To oversee project completion details and to make preparations for operational startup, the joint venture has appointed Kevin Weston as director of operations of the Magistral Del Oro project in Mexico. Mr. Weston holds a bachelor of engineering in mining and mineral engineering from McGill University and has over 35 years of experience in developing and operating mining projects. Among other prior roles, Mr. Weston has served as chief operating officer of Farallon Mining Ltd., vice-president, operations, Canada, of Capstone Mining Corp. and chief operating officer at JDS Silver/Silvertip. Mr. Weston, a fluent Spanish speaker, has previous experience as a senior operator in Mexico with Farallon Mining.
Picacho Project, Sonora, Mexico
The company is working on a development strategy for the Picacho project, which will focus on production of the Picacho vein. It is expected that a plan should be defined sometime in the first quarter of 2018.
Durango Smelter Project (IDSA), Durango, Mexico
The IDSA project, which is managed as a 50/50 Joint Venture with MX Gold, is currently on hold until the Magistral project has commenced commercial production. At that time, the management committee will look at the options for the project.
SmartPac, LLC (Subsidiary)
The company has entered into an agreement to sell certain intellectual property assets known as the the SmartPac Intellectual Property. In addition to $900,000 in cash payments, the agreement provides that the company will receive approximately 6% of the outstanding equity interests in the acquiring company, in the form of 50,000 shares of common stock.
Mr. Francis Biscan Jr., Chairman and CEO of Firma Holdings Corp., stated, “We are very encouraged with the progress that has been made to advance the company’s projects. We will be taking an aggressive development posture in 2018, with a direct focus on production, and look forward to sharing our progress.”
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain forward-looking statements contained herein, including “expect,” “plan” and “will,” contain statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the Company's control with respect to the quality and marketability of minerals, if any, to be uncovered by the projects described herein, market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's historical filings with the Securities and Exchange Commission (the “SEC”). At this time, the Company is not current in its SEC reports, and you are cautioned that material information with respect to any investment decision with respect to our common stock may not have been disclosed or available. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. Please read the full disclaimer at www.FirmaHoldings.com.