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Rochester Resources Ltd. commenced milling operations at its high-grade gold/silver mine in Nayarit, Mexico. The crushing and grinding section of the mill is now operating at its initial design capacity and feeding the cyanide plant at the rate of 200 tonnes per day. The mill is expected to remain at this level until mid-2007, when an increase in capacity to 300 tonnes per day is contemplated. The modular design of the mill should allow for the planned increase in capacity to be implemented at a cost of under $300,000 (U.S.).
Based on independent metallurgical test results, mill recovery rates for gold are anticipated to average approximately 95 per cent. Silver recovery is expected to reach 90 per cent once a small additional sulphidation circuit is added to deal with the occurrence of elevated levels of manganese. Milling costs are not expected to exceed $25.00 (U.S.) per tonne of processed material. Delivery of the first production of gold and silver precipitate to the refinery for smeltering is expected to take place during the last week of January.
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