SCOTTSDALE, Ariz.--(BUSINESS WIRE)--El Capitan Precious Metals, Inc. (OTCQB: ECPN) confirms that it received its first payment on the sale of precious metals extracted from El Capitan ore in June of this year from a domestic precious metals refinery. The Company has since dispatched a second shipment of precious metal alloy bars to the refinery for processing and payment.
According to John F Stapleton, Chairman and CEO, the first shipment—weighing slightly over four pounds—was a key step in establishing protocols and procedures that will be implemented in future, larger translations. The second shipment of precious metal alloy bars had a total weight of approximately 13.5 pounds, or about three times the weight of the first shipment.
From the first alloy bar shipment, the refinery recovered gold, silver, and platinum, which represented approximately six percent of the total weight of the bar. For these precious metals, El Capitan was paid approximately $3,600, or approximately $900 for each pound of the concentrated metal alloy. Stapleton stresses that it is important to note that the bar also contained iridium and osmium and that, on the first shipment, the Company was not paid for the iridium and the osmium. That is expected to change, he stated, related to future shipments on which the refiner would pay for all precious metals in the alloy bars.
The Company estimates that, if it has been paid for the iridium and osmium metals in the first shipment, the percent of total weight subject to payment would have been 10 percent (versus six) with an added payment of $1,400, bringing the total payment to approximately $5,000.
“The bottom line,” said Stapleton,” is that the financial elements of the initial transaction calculate to and demonstrate that, had El Capitan been paid for all the precious metals in the bar, it would have received approximately $1,250 for each pound of precious metals concentrates that it produced and sold.”
Stapleton added that, while the Company, under contact terms, has not yet received payment on the second shipment of alloy bars, it has been informed that it will receive payment for all precious metals—gold, silver, platinum, iridium, and osmium—in the metal alloy bars in the second transaction and in subsequent shipments.
The Company expects its third shipment to be approximately 500 pounds of precious metals concentrates and that material is being prepared for shipment.
Stapleton stressed that in developing new methods of extracting precious metals, the process requires that the Company start with a small run which would increase incrementally with each successive run and shipment, assuring that the process and results remain consistent with increasingly large amounts of material or, alternatively, making the necessary adjustments. “That is exactly the purpose of a Pilot Operation,” said Stapleton, “and the incremental ramp up has proven to be successful.”
As announced at the July Shareholders’ Informational Meeting, once the larger shipments consistently prove to produce the same level of results, El Capitan expects to arrange for its ore to be concentrated and its precious metals to be recovered in much larger quantities in a Production Operation. Planning and discussions are already taking place to support this transition.
Company management is very confident of the attractiveness of these recovery methods, their cost-effectiveness, and their scalability.
About El Capitan Precious Metals, Inc.:
El Capitan Precious Metals, Inc. is a mining company based in Scottsdale, Arizona that is principally engaged in the mining of precious metals and other minerals. The Company’s primary asset is its wholly owned subsidiary El Capitan, Ltd., an Arizona corporation, which holds the 100% equity interest in the El Capitan property located near Capitan, New Mexico. www.elcapitanpmi.com
Forward-Looking Safe Harbor Statement:
The statements included in
this press release concerning predictions of economic performance and
management’s plans and objectives constitute forward-looking statements
made pursuant to the safe harbor provisions of Section 21E of the
Securities Exchange Act of 1934, as amended, and Section 27A of the
Securities Act of 1933, as amended. Forward-looking statements are
statements that are not historical facts. Words such as “expect(s),”
“feel(s),” “believe(s),” “will,” “may,” “anticipate(s)” and similar
expressions are intended to identify forward-looking statements. These
statements include, but are not limited to, statements regarding the
expected completion, timing and results of metallurgical testing,
interpretation of drill results, the geology, grade and continuity of
mineral deposits, results of initial feasibility, pre-feasibility and
feasibility studies and expectations with respect to the engaging in
strategic transactions. All of such statements are subject to risks and
uncertainties, many of which are difficult to predict and generally
beyond the control of the Company, that could cause actual results to
differ materially from those expressed in, or implied or projected by,
the forward-looking information and statements. Specifically, there can
be no assurance regarding the timing and terms of any transaction
involving the Company or its El Capitan property, or that such a
transaction will be completed at all. In addition, there can be no
assurance that periodic updates to the
Company’s geological technical reports will support the Company’s prior claims regarding the metallurgical value and make-up of the ore on the New Mexico property. Additional risks and uncertainties affecting the Company include, but are not limited to, the possibility that future exploration, development, testing or mining results will not be consistent with past results and/or the Company’s expectations; discrepancies between different types of testing methods, some or all of which may not be industry standard; the ability to mine precious and other minerals on a cost effective basis; the Company’s ability to successfully complete contracts for the sale of its products; fluctuations in world market prices for the Company’s products; the Company’s ability to obtain and maintain regulatory approvals; the Company’s ability to obtain financing for continued operations and/or the commencement of mining activities on satisfactory terms; the Company’s ability to enter into and meet all the conditions to consummate contracts to sell its mining properties that it chooses to list for sale; and other risks and uncertainties described in the Company’s filings from time to time with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.
