MONTREAL, QUEBEC–(Marketwired – Oct. 7, 2015) – Glen Eagle Resources Inc. (TSX VENTURE:GER) (“Glen Eagle” or the “Company”) is pleased to announce that is has sold in the last quarter $123,000 in gold and silver from Cobra Oro’s custom milling plant in Honduras. The sales enabled Cobra Oro to cover operating on costs and part of its capital cost for the period. This was achieved despite the fact that the plant was stopped for three weeks during the quarter to improve on site infrastructures. Overall, the operations were ongoing 24 hours per day, five days per week.
Glen Eagle has invested since the acquisition of Cobra Oro on May 21, 2015 an additional $236,000 to purchase equipment and build a cyanide circuit which is expected to improve gold recovery and reach a projected monthly production of 100 ounces of gold and 1000 ounces of silver. The projections are based on four months of accumulated production data and a better understanding of its future operations. The commissioning of the cyanide circuit is expected to be completed by the end of November and should allow Cobra Oro to transit from pre-production to production level by meeting certain milestones established by the industry standards.
Once production has been stabilized for an adequate period of time using its upgraded circuits, the Company wants to increase daily throughput from 35 tonnes per day to 120 tonnes per day by adding another ball mill and making the appropriate plant site modifications to support the extra volume. The lower than anticipated throughput tonnage was caused by the processing of very hard quartz mineralized material which has slowed down crushing considerably.
Gilles Laverdiere, P.Geo., a qualified person under NI 43-101 has approved the technical content presented herein.
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