Month: October 2011

Toronto, October 18, 2011 – Scorpio Mining Corporation (TSX:SPM) (“Scorpio Mining” or the “Corporation”) reports that production in the third quarter ended September 30, 2011 (“Q3 2011”) from the Nuestra Señora operation totalled 604,975 silver equivalent ounces*, representing a 13% increase over Q3 2010.

Primero Mining Corp. announced today that it has filed a formal application to the Mexican tax authorities for an advance ruling on the Company’s restructuring plan that, if successful, would result in paying income taxes in Mexico based on realized rather than spot revenue. When completed, the advance tax ruling process will provide certainty and resolution to the Company’s restructuring plan. It will also ensure the Company will avoid tax penalties that could arise should the Mexican tax authorities disagree with the restructuring plan.

Alamos Gold Inc. is pleased to announce that Mr. Han Ilhan will join the Company as Vice President of Projects effective October 17, 2011. Mr. Ilhan has extensive experience providing engineering and environmental solutions to mining projects worldwide. As Vice President of Projects, Han will be based in Ankara, Turkey and will oversee development of the Company’s Turkish projects, as well as future development projects.

Grupo Mexico ordered to pay for its role in Minerva deal

VANNew Gold Inc. and Silver Quest Resources Ltd. today jointly announce a binding letter agreement whereby New Gold will acquire, through a plan of arrangement, all of the outstanding common shares of Silver Quest. Under the terms of the Arrangement, Silver Quest shareholders will receive 0.09 of a New Gold share for each Silver Quest share held and one common share in a new Yukon-focused precious metals exploration company, McIntyre Minerals Inc. for every three Silver Quest shares held. The offer values Silver Quest at $1.32 per share, representing a 52% premium based on the combination of:

Goldgroup Mining Inc. is pleased to announce that, further to its news release of September 26, 2011, Goldgroup has completed the acquisition of the remaining 30% interest in the Caballo Blanco project held by Almaden Minerals Ltd. Goldgroup now owns 100% of the Caballo Blanco project.

On 12 October, Mexican precious metals miner Fresnillo PLC, the world’s largest primary silver producer, trimmed its full-year guidance for silver production by 3 million to 41 million ounces. The revised outlook followed by a 5.80% fall in its silver production in the third quarter as the company reinforced safety conditions at all of its projects following the death of two contractors in July. The company added that it is expecting to resume with the normal operations at the Fresnillo mine by the end of October. However, the company upped its gold production target to 430,000 ounces for the year 2011, from previously estimated 400,000 ounces.

Toronto, Ontario, Canada. Zaruma Resources Inc., (TSXV-ZMR), (the “Company” or “Zaruma”) today reported that its Board of Directors has determined to proceed with the share consolidation and name change which was approved by shareholders at the annual and special meeting of the Company held on July 19, 2010 (the “2010 Shareholder Meeting”).

TORONTO, Oct. 13, 2011 /PRNewswire/ – Agnico-Eagle Mines Limited (“Agnico-Eagle”) (NYSE & TSX: AEM) and Grayd Resource Corporation (“Grayd”) (TSX-V: GYD & OTCQX: GYDRF) jointly announced today that Agnico-Eagle has formally commenced its previously announced take-over bid (the “Offer”) to acquire all of the outstanding common shares of Grayd at a price of $2.80 per share. The Offer represents a premium of 65.7% to the volume weighted average price of Grayd shares on the TSX Venture Exchange for the 20-day period ended September 16, 2011 (the last trading day prior to announcement of Agnico-Eagle’s intention to make the Offer).

GREAT PANTHER SILVER LIMITED (TSX: GPR; NYSE Amex: GPL; the “Company”) reports third quarter (“Q3”) production at its two wholly-owned Mexican silver mining operations, Topia and Guanajuato and appoints Mr. Graham Parsons, MBA, as General Manager of its Guanajuato Operations.

Ore processed in Q3 is up 16% year on year; however, a significant drop in ore grades resulted in metal production being lower by 18%. Metal production, from the two mines, at 484,550 silver equivalent ounces (“Ag eq oz”), included 343,768 ounces silver (Ag oz), 1,494 ounces gold (Au oz), 222 tonnes lead (Pb t), and 294 tonnes zinc (Zn t). At Guanajuato ore grades are expected to improve in the fourth quarter (“Q4”). The deeper extensions of the Cata Alto 1 and 2 zones have been explored and found to be significantly higher grade and production improvements are now anticipated with the addition of high grade ore from the Alto 1, 1a and 2 zones at the 510 metre level.

Year to date, the combined metal production is 1.65 million Ag eq oz, as compared to 1.69 million Ag eq oz, for 2010. The estimated production for the fourth quarter is expected to improve to 550,000 Ag eq oz for a yearend total of approximately 2.2 million Ag eq oz. Production targets for 2012 and beyond are currently under review and management expects to provide further guidance in the fourth quarter.

A new General Manager, Mr. Graham Parsons, MBA, has been appointed for the Guanajuato Operations. Mr. Parsons is fluent in Spanish, having worked in underground operations and open pit projects in Spain, Argentina and Venezuela. He brings a wealth of international mine engineering and operations management experience to Great Panther. Most recently, he held the position of COO for Empire Mining Corporation, a junior exploration and mining company with interests in South-Eastern Europe. Several opportunities exist to improve production output at Guanajuato and Mr. Parsons is expected to add the mining expertise and management skills necessary to achieve the improvements.

The following summarizes the results for the third quarter, 2011: