Rochester Resources Ltd. holds 100% interest in the Mina Real gold/silver property comprising 7,381 hectares of exploration and mining concessions located east of the capital city of Tepic, in the state of Nayarit, Mexico. The project encompasses the continuity of five vein structures - La Florida, El Puerto 1, El Puerto 2, Tajos Cuates 1 and Tajos Cuates 2 - as well as six recently discovered vein systems on the property. The Company has also announced that it has located several outcrops on the properties that indicate the existence of additional veins that were previously undiscovered. The Company currently has identified 11 vein structures property-wide.
GEOLOGY OF THE MINA REAL PROPERTY
The mineralized structures on the Mina Real Property form part of a low sulphidation epithermal gold-silver system which is comprised of quartz veins and quartz breccia with iron and manganese oxides. The Florida veins trend NW-SE and have steep near vertical dips. The width of the veins varies from approximately 0.30 to over 3.0 meters wide. They appear to be structurally controlled by a set of parallel faults and at places displaced by NE trending post-mineral faults. Some vein segments contain elevated gold and silver values, mainly due to oxidation and secondary enrichment. The host rock is a dacite which shows silicification and quartz veinlets in the wall rocks adjacent to the quartz veins. The silicified wall rocks are narrow, generally 1 to 2 meters on each side of the veins.
The Mina Real Property has three concurrent activities taking place which will all help to increase share value in the near and mid-term:
A 4000 metre Phase 1 diamond drill program will be initiated Q4 2007 and Q1 2008 at the Mina Real Property. Rochester will be implementing a 2000 metre diamond drill program at the Florida North project to identify the continuation of the Florida triple vein system in addition to implementing a 2000 metre diamond drill program at Tajos Cuates to further delineate the lateral and vertical extent of the vein system.
Drift development at Florida and Tajos Cuates will provide bulk sample-like information and assist in generating a NI43-101 compliant reserve report while at the same time providing feed for the mill. Drift development at the Mina Real Property continues at Florida's triple vein structure and at the Tajos Cuates vein system with 600 metres of development budgeted for each project and to be implemented immediately.
Rochester is currently in production, processing 200 tonnes/day, and as of the end of August 2007, the Company is generating positive cash flow from operations. Studies are underway to investigate increasing production up to 350 tonnes/day by early 2008. It is important to note that the anticipated positive cash flow generated from milling activities will allow the Company to fund ongoing exploration and development activities limiting further share dilution. The mill is currently being fed from drift development mining from three parallel vein structures known as Florida 1, 2 and 3. This development area comprises an estimated average of about 250 metres of vein structure laterally and an estimated depth of over 300 metres. The potential lateral extent is in the order of several kilometers at this one vein system. The mill will also be receiving additional high grade feed from its Tajos Cuates vein system in early 2008.