Vancouver, BC November 02, 2012
(Financial Press) – Canada-based mining company Tirex Resources is making the critical jump from exploration and development company to operational mining company.
Just days ago Tirex announced it has received approvals for its mining permits from the Albanian Ministry of Economy, Trade, and Energy. These long-awaited permits will have a tremendous impact on Tirex’s future.
Tirex has been aggressively developing its 100%-owned gold-copper-zinc mineral district in Albania for more than five years. When Tirex first acquired the District, it had 17 known historical deposits, 9 of which were former producing mines. Since the acquisition, Tirex has identified dozens more high priority exploration targets that have never been drilled.
The company was the first company to bring modern exploration techniques to Albania which has a long history of mining. To date a total of $25 million has been invested by Tirex in exploration and development to bring the project to the final stages of pre-production.
And it also completed a deal which will put it into production within a matter of months. Last September Tirex announced a deal with the largest mining company in Albania, which also happens to operate a mine immediately adjacent to Tirex’s property.
The agreement is between Tirex and Turkey-based mining company Ekin Maden Tic. Ve San. A.S. (Ekin Maden). The way the agreement is structured puts Tirex in position to reap enormous near-term benefits of mining without the high upfront capital costs normally associated with mill construction and underground development.
As part of the deal, Ekin Maden contributes mill capacity and capital while Tirex contributes six of the historical deposits within its lands holdings. The partnership will mine the deposits and take the gold-copper-zinc ore to be processed at the mill which is already in operation and has spare capacity. Then the two companies split the after-cost proceeds from the minerals sold.
As a result of the agreement, Tirex is in potential position to start receiving revenues from its deposits within a matter of months and does not have to make any more investments into the large and burdensome capital costs to build its own processing facilities.
All of this growth and advancement has been on hold in recent months though as the mining permits were being evaluated.
That has changed. Officially, the permit approval to convert from exploration licenses to exploitation licenses has now been received. The permits are also good for 25 years. So Tirex has ample time to explore for more resources within the vast VMS district. Outside of the six specific areas within the partnership, Tirex will focus on district-scale exploration on other areas of the District for its sole benefit.
This is a major step forward for Tirex and it opens up a number of growth and development opportunities. For example, the mining licenses only cover six deposits in the large Mirdita project. But the company already has identified more than 40 high priority exploration targets on the Mirdita project, yet to be drilled.
Given the rate of production, the reported high grade mineralization found in Albania’s VMS deposits which have been mined for centuries, the low level of estimated mining costs, and current metals prices, the potential cash flows attributable, Tirex will potentially have sufficient capital to provide an extensive work program. The program will include the exploration and development of the many other targets Tirex has identified over the years on its property during multiple exploration and drilling campaigns, without having to issue new shares for additional capital and dilute current shares.
Bryan Slusarchuk, Tirex CEO, stated immediately following the announcement of the final official approval permits, “This is a significant day, not only for Tirex shareholders but also for the local communities in northern Albania that will benefit from this decision to grant all six mining licenses to Tirex, as applied for.”
This latest news makes Tirex another success story in Albania. The company joins many other companies including PriceWaterhouse Coopers, Lockheed Martin, Mercedes, Coca-Cola, Vodaphone and many more major global brands and leading companies to operate successfully in Albania.
Tirex has a market capitalization of approximately $55 million. Its shares trade on the TSX Venture Exchange. Learn more about Tirex Resources at http://www.tirexresources.com where you will find more information about the company including important disclaimers about the nature of non-43-101 compliant historic resources and the lack of certainty as to the viability of the future operations given the lack of feasibility study. The website contains information about the company, management, financials, drill results, and other important data.
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