Searchlight Minerals Corp. provides update on Clarkdale Slag Project
18 Juni 2008 - 12:00PM
PR Newswire (US)
Company reviews recent achievements, upcoming milestones and plans
for 2,000 ton-per day production facility HENDERSON, NV, June 18
/PRNewswire-FirstCall/ -- Searchlight Minerals Corp. (OTC BB: SRCH)
(the "Company"), is pleased to provide investors with the following
update on the development and construction activities at its
Clarkdale Slag Project in Clarkdale, Arizona. RECENT ACHIEVEMENTS
Searchlight Minerals today announced that on June 17, 2008, the
City of Clarkdale, Arizona issued a Certificate of Occupancy for
the laboratory facilities located within the building that is
anticipated to house the Company's initial 100 to 250 ton-per-day
(tpd) commercial production module for the extraction of precious
and base metals from a 20 million-ton slag pile located in
Clarkdale, Arizona. The slag pile is approximately six miles from
the historic United Verde Copper Mine in Jerome, Arizona, which
produced some of the richest copper ore ever mined in the U.S.
Clarkdale housed a smelter operation for the United Verde Mine, and
when smelting activities ceased in 1947, a metal-bearing slag was
left at the Clarkdale site. Independent engineers, operating under
chain-of-custody procedures, have estimated that the slag pile is
comprised of approximately 20.2 million tons of material that
contains approximately 0.50 ounces of gold per ton, along with
silver, copper, zinc and a ferro silicate byproduct. "We view
receipt of the Certificate of Occupancy for the laboratory as the
achievement of an important milestone in our journey to complete
the construction, installation, testing and start-up of our initial
production module in Clarkdale," stated Ian McNeil, Chief Executive
Officer of Searchlight Minerals Corp. "In coming weeks, we will
install state-of-the-art analytical equipment in the laboratory
that will allow our chemists to conduct immediate, on-site analyses
of leaching results to further optimize the metals extraction
process." During the first half of 2008, the Company has been
involved primarily in the renovation of an existing 26,000 sq. ft.
building at the Clarkdale site. The building will house most of the
components of the initial full-scale production module, including
crushing, grinding, leaching, filtering and Ion Exchange (IX)
circuits. Concurrent with the building's renovation, the Company
has been taking delivery of major equipment items, such as impact
mills, a vibratory mill, leaching tanks, filter presses, ion
exchange systems and lab equipment. A majority of the critical
equipment is on site and currently being installed in the building.
Remaining items are slated for delivery within the next few weeks.
"The renovation process has been enormously complex," observed
McNeil. "We have overcome some very challenging engineering issues
in order to integrate full-scale production equipment into the
existing building. In the process, the Company has significantly
upgraded service utilities and installed an operating well that
will provide water service to the first module. A new electrical
room and transformer were added, and underground power lines are
now coupled to the transformer. The building should transition from
temporary generators to the Arizona Public Service power grid later
this week." FUTURE MILESTONES The Certificate of Occupancy for the
laboratory is one of three such occupancy certificates that the
Company must obtain in order to operate at the Clarkdale site.
Additional occupancy certificates will be required for the main
processing building and a separate building for the electrowinning
equipment. Obtaining an occupancy certificate for the main
processing building represents the most significant milestone the
Company will need to achieve in the development program, and the
issuance of such certificate is anticipated in the third quarter of
2008. At that point, the Company will be in a position to commence
the equipment testing and start-up procedures for full-scale
operation of the module. The vast majority of operations related to
production are expected to occur within the main processing
building. Several key structural and integrated components,
including the hopper pit and superstructure for the hammer-impact
mill / screens, are scheduled for delivery over the next few weeks.
Following the installation of these items, the exterior of the
building will be completed, and a Certificate of Occupancy for the
entire building should be issued. Process engineers and
metallurgical personnel can then begin operational testing of major
equipment components, including the crushing, grinding, leaching
and filtering circuits. The gold and silver extraction circuit will
be tested and fine-tuned for optimum performance. Pre-operational
systems integration and equipment de-bugging are a critical phase
in the start-up process. During these procedures, the Company will
attempt to ensure that the precursory steps to metals liberation
are achieved with the full-scale equipment. After extensive
deliberations with one of the world's leading manufacturers of
electrowinning ("EW") systems, the Company elected to significantly
upgrade such systems, which will be responsible for the final
extraction of copper and zinc, along with the recycling of
chemicals used to remove the metals from the resins. The
state-of-the-art EW components will be housed in a separate
building, adjacent to the primary processing building. The copper
EW equipment has already been delivered to the site, and the zinc
EW equipment has been ordered. Completion of the newly designed EW
building, and receipt of a Certificate of Occupancy, represent the
final milestone that must be achieved in phase-one operations, and
this is expected to occur in the fourth quarter of 2008. "The
complexity of designing the EW systems upgrade has caused an
unanticipated time delay in completing the initial production
module," noted McNeil. "However, I am pleased to report that we
broke ground on construction of the EW building earlier this week.
Construction of this building, along with installation of the
copper/zinc electrowinning equipment and the integration of that
system, will represent the final milestone in the completion of a
fully functioning production module that can run as a continuous
circuit, from start to finish. The Company will use the time during
which the EW building is under construction to fine tune the
grinding, filtering and precious metal leaching and extraction
circuits. Engineers anticipate that the integration of the EW
circuit will be a fairly seamless operation." PREPARATION FOR 2,000
TON-PER-DAY PRODUCTION FACILITY UNDERWAY While Searchlight
Minerals' primary focus is centered on completion of the initial
production module, the Company has budgeted approximately one
million dollars for fiscal year 2008 in order to complete key
engineering, permitting and development prerequisites for
construction of a 2,000 tpd production facility. The Company is
currently completing a large-scale demolition and grading project
that will clear approximately twelve acres of land immediately
adjacent to the slag pile. This reclaimed parcel will serve as the
central location for the improvements that will house the Company's
full-scale production modules. CONCLUSION "It is very difficult to
simply outline the milestones associated with this project,"
continued McNeil. "The engineering, design and operational
complexities are enormous, and assembly of equipment modules within
the confines of renovating a World War I era industrial building
has been extremely challenging. We have engaged over fifty
consultants and equipment suppliers from around the world to
develop, design and construct the first Clarkdale production
module, and bringing this facility into operational status is a
complicated process of systems integration. While there are defined
milestones along the way, the prediction of time-specific events is
difficult, because each such event is inextricably tied to so many
others. The objective of this update, and others that will follow
more frequently, is to allow our investors to more fully appreciate
the significant progress that has been made. Most importantly, we
want to underscore our continued confidence regarding the
transition from construction to production later this year." "We
have encountered a number of unanticipated delays in recent months,
ranging from equipment delivery schedules to our decision to
upgrade the electrowinning systems, but we consider none of these
delays outside the scope of acceptable complications for a project
of this magnitude. Once the metals recovery module is fully tested
and optimized, we will retain an independent engineering firm to
conduct a formal, commercial feasibility certification. Completion
of that certification will allow us to determine critical aspects
of our development and expansion strategy." About Searchlight
Minerals Corp. Searchlight Minerals Corp. is a minerals exploration
company focused on the acquisition and development of projects in
the southwestern United States. The Company is currently involved
in two projects: (1) the Clarkdale Slag Project, located in
Clarkdale, Arizona, is a reclamation project to recover precious
and base metals from the reprocessing of slag produced from the
smelting of copper ores mined at the United Verde Copper Mine in
Jerome, Arizona; and (2) the Searchlight Gold Project, which
involves exploration for precious metals on mining claims near
Searchlight, Nevada. The Clarkdale Project is the more advanced of
two ongoing projects that the Company is pursuing. The Searchlight
Gold Project is an early-stage gold exploration endeavor on 3,200
acres located approximately 50 miles south of Las Vegas, Nevada.
Searchlight Minerals Corp. is headquartered in Henderson, Nevada,
and its common stock is listed on the OTC Bulletin Board under the
symbol "SRCH". Additional information is available on the Company's
website at http://www.searchlightminerals.com/ and in the Company's
filings with the U.S. Securities and Exchange Commission.
Forward-Looking Statements This Press Release may contain, in
addition to historical information, forward-looking statements.
Statements in this news release that are forward-looking statements
are subject to various risks and uncertainties concerning the
specific factors disclosed under the heading "Risk Factors" and
elsewhere in the Company's periodic filings with the U.S.
Securities and Exchange Commission. When used in this news release,
the words such as "could," "plan", "estimate", "expect", "intend",
"may", "potential", "should", and similar expressions, are
forward-looking statements. The risk factors that could cause
actual results to differ from these forward-looking statements
include, but are not restricted to the Company's limited operating
history, uncertainties about the availability of additional
financing, geological or mechanical difficulties affecting the
Company's planned geological or other work programs, uncertainty of
estimates of mineralized material, operational risk, environmental
risk, financial risk, currency risk and other statements that are
not historical facts as disclosed under the heading "Risk Factors"
and elsewhere in the Company's periodic filings with securities
regulators in the United States. Consequently, risk factors
including, but not limited to the aforementioned, may result in
significant delays to the projected or anticipated production
target dates. CONTACT: Carl Ager, Vice President, (702) 939-5247, ;
RJ Falkner & Company, Inc., Investor Relations Counsel, (800)
377-9893, DATASOURCE: Searchlight Minerals Corp. CONTACT: Carl
Ager, Vice President, (702) 939-5247, ; RJ Falkner & Company,
Inc., Investor Relations Counsel, (800) 377-9893,
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