Timmins Gold Corp. (the "Company") announces that pursuant to the Share Purchase Agreement dated April 20, 2007 it has now made the full and final payment of US$2.5 million to finalize the acquisition of a 100% interest in the past producing San Francisco gold mine in Sonora, Mexico.
In January of 2007 the Company announced a measured and indicated resource estimate at the San Francisco mine of 716,800 ounces of gold (27,650,000 tonnes at 0.81 grams per tonne) and an inferred resource estimate of 63,500 ounces of gold (2,510,000 tonnes at 0.79 grams per tonne) completed by Independent Mining Consultants, Inc. of Tucson, Arizona (IMC) in January, 2007 using the current CIM definitions for mineral resources as required by National Instrument 43-101. A gold plant with a rated capacity in excess of 80,000 ounces of gold a year is on site along with associated infrastructure. The Company's corporate objective is to resume production at the San Francisco mine in the second half of 2008.
In addition, the Company has an option to acquire each of the Tequila and Las Coloradas properties in Mexico. Significant mineralized intervals encountered during the current sampling program at the Tequila project include from the Veta Grande, 15.91 g/t Au across 3.0 m, 13.71 g/t Au, 119 g/t Ag across 10.0 m, and 14.01 g/t Au across 10.0 m; from the Guadalupe Vein 5.72 g/t Au, 320.0 Ag across 1.0 m; and from the Grano de Oro vein 662.40 g/t Au across 2.5 m, 13.88 g/t Au across 2.0 m and 5.91 g/t Au across 2.0 m.
For further information, contact:
Bruce Bragagnolo, LLB.
Vancouver, B.C. Canada
Darcy Krohman, P.Geo., C.A.
Vice-President & CFO
Vancouver, BC, Canada
For Investor Relations, contact:
Vancouver, BC, Canada
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While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.