Vancouver-based junior mining Farallon Resources announced Monday that the company has reached commercial production at the G-9 zinc mine in Guerrero State, Mexico.
The targeted production for this year is to produce 120 million pounds of zinc, 15 million pounds of copper, 1.5 million ounces of silver, 14,500 ounces of gold and six million pounds of lead.
The G-9 mine is targeted to be in the lowest 10% cost segment of the cost curve for international zinc producers, which Farallon says will allow the company to operate profitably even in times of low metal prices.
The mine is now operating at full design capacity of 1,500 tpd. Concentrate shipments began in February to smelters and end-users, mainly in Asia via the Manzanillo Port in Colima State. The focus is now on improving operational efficiencies in both the mine and mill, with an emphasis on improving mill recovery.
In a news release, Dick Whittington, president and CEO of Farallon said, We are confident that the G-9 Mine can be sustained through this difficult metal price environment, and enable the company to prosper when metal prices inevitably recover down the road.