Friday, September 21, 2012

Cleveland Mining [CDG] - Cleveland Commences Mining at Premier Gold Mine in Brazil

Cleveland Mining Company Ltd. (ASX: CDG) is proud to announce that it has started mining at the Premier Gold Mine in central Brazil.

Ore is now being stockpiled at the plant, where live commissioning is underway.

The final external barrier to the start of mining and processing was overcome when the electrical connection to site was established after a longer-than-anticipated bureaucratic process. The Company has now received all permissions required to start round-the-clock mining and processing of ore through the Stage 1 gravity circuit.

Managing Director of Cleveland Mining, Mr David Mendelawitz, said that the Company was delighted to have reached this milestone.

“We are debt free, about to generate cash-flow, and have built the first stage of the mine far quicker than is typical. With gold now trading at around $1750 per ounce, $200 per ounce higher than 6 months ago, it’s a great time to start selling it,” said Mr Mendelawitz.

"Our strategy aimed to build a reasonably small mine first so we could understand what affects budgets and schedules when building mines in Brazil, recruit and structure our teams optimally, and not expose the Company to restrictive debt burdens.”

“When we expand Premier and build other larger mines, we will be well positioned to get them right. The commencement of mining, along with the lessons learned to date, put us in a very strong position to create a solid future for Cleveland Mining.”

“We are now working to get Stage Two, the cyanide circuit, of the Premier mine built as quickly as possible, whilst at the same time working to increase our gold resources through exploration or acquisitions. Work also continues to schedule in Amapá state on our Iron projects, where we are currently sinking shafts for bulk samples for metallurgical testwork."

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