Vancouver, B.C. -- To update current activity Lovitt Resources Inc. (the “Company”; TSXV: LRC) reports that it has delayed the opening of the 1250 adit level due to budget considerations which were too optimistic when all costing was assessed. The Company changed its focus from underground to surface and has completed a multi-month assessment of the surface gold potential over an area of about 3 acres. The company relied upon the past work of Cyprus Anvil in the sixties and Asamera Minerals (US) Inc. in the eighties, plus new sampling over the same area to arrive at a production decision. Recently, the company focused on material on the 1550 dump area, where surface assays indicate that a pilot gravity operation producing a gold and silver concentrate could result in positive cash flow.
The company has outlined an area of approximately 100 x 25 feet of gold and silver bearing material expected to return at least 2-3 gm/t gold equivalent with minimal sorting. Archival records indicate that the target material ranges from 20 to 80 feet in depth. The initial objective of the company is to cover overhead expenses, and excess cash will used to re-open the 1250 level, previously found to have a potential for higher grade production. The company expects to generate cash flow from surface material this quarter and a decision to re-enter the 1250 level will be made early in 2013. The company owns gravity equipment that will process material up to the rate of 10 tons per hour. The company plans to rehabilitate all historic dump areas on the property over a period of time, and an eco-friendly gravity capability will be a positive step towards that goal.
The company also intends to drill its permitted Matthews property, about 1 ½ miles to the southeast on the Wenatchee Gold Belt as soon as the financing climate and cash resources allow. The company intends to apply for an extension of the existing drill permit, or re-apply for a new permit, if the current permit expiry date of December 17, 2012 passes without having drilled the 1,200 meter program.
The Lovitt Gold Mine, located in central Washington State, suspended operations in 1966 after producing 420,000 oz of gold and 620,000 oz of silver over the previous sixteen year period, with an average grade of 0.40 oz of gold per ton (or 13.7 gm Au/t). The directly adjoining Cannon Mine to the northwest produced 1,200,000 oz of gold and 1,900,000 oz of silver between 1984 and 1995 at an average grade of 0.30 oz Au/ton (or 10.3 gm Au/t). During their respective periods of operation, both Wenatchee mines were among the leading producers of underground gold mines in the USA.
This news release was reviewed and approved by our Director James Proudfoot, P Eng., a qualified person under NI 43-101.
For more detailed information, please refer to the website of the Company at: http://www.lovittresources.com eMail: [email protected] or call the Company at (509)668-8170. For current activity check: https://twitter.com/#!/LovittResources
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