CHICAGO, IL — (MARKET WIRE) — 12/07/06 — Tara Gold Resources Corp. (PINKSHEETS: TRGD) (FRANKFURT: T8N) is pleased to announce that a mill upgrade and a Phase 1 exploration program has commenced on the Picacho Gold Mine in Sonora State, Mexico. In July 2006, Tara Gold signed an Option Agreement with Lateegra Gold Corp. to acquire up to a 70% interest in the Picacho Gold Mine by spending a minimum of U.S. $ 3.5 million, delivering 600,000 shares, and achieving certain production goals.
Tara Gold and Lateegra are working together to refurbish the existing mill, crushing circuit and rolling stock. During the mill upgrade, the partners continue to ship mined silica, maintaining a silica flux supply contract to a local smelter. The site office in neighboring Bacoachi has undergone a complete renovation with plans advancing for an upgrade to the mill facility’s office, laboratory and shop complex.
The initial focus of the exploration program will be resource delineation. Lateegra Gold, the operator of the program, has completed a comprehensive data compilation of the previous work, including locating and surveying all underground workings and 20 diamond drill holes. The incorporation of pre-existing mine plans including a blocked out mill feed is being systematically verified for incorporation with the data compilation. Initial interpretation of the compiled data by an operator suggests that there are a number of parallel structures that host the mineralization. Initial surface examination of the gold bearing structures by the geologists show that the mineralization extends over a strike length of 1,500 meters. Of note, the compilation of the old data has shown that drilling 400 meters northwest of the main workings encountered higher gold values over considerable widths compared to the main workings previously sampled by the operator’s geologists.
The surveying of the old workings has aided in establishing good topographic control for further detail geochemical sampling, geological mapping and mine development. Lateegra has also contracted a geophysical crew to conduct a magnetic and induced polarization survey over the known mineralized zones. The planned geophysics will aid in the understanding of the dimensions of the gold bearing structures. A drill plan is being designed for near term commencement, initially utilizing local drill crews and equipment, with planned expansion foreseen in January.
The technical information within this news release was provided by Lateegra and has been reviewed, on their behalf, by Jeffrey Reeder P.Geo., a Qualified Person as defined in the TSE national policy 43-101.
About Picacho Gold Mine
The Picacho Gold Mine is a 3,236 hectare mining concession located within the Northern Sierra Madre Gold Belt, 120 kilometers south of the United States Border, in Sonora State, Republic of Mexico. The mine includes rolling stock and an extensive processing facility currently capable of 250 tonnes/per day of ore throughput. The previous owners have been exploiting an up to 5 meter wide vein structure for the past three years by driving a 5 meter by 5 meter ramp declining 8% extending over 1km in length. Production comes from several working faces averaging 4-6 meters in width. The ore grades average 5 grams/tonne gold and 15 grams/tonne silver. The structure that hosts the mineralization is 85% silica creating a tailings product that is being sold as a flux agent to the local smelters for US$35.00/tonne, an amount that is estimated to generate sufficient revenues to cover current mining and milling costs.
About Tara Gold Resources Corp.
Tara Gold Resources Corp. is a growth-oriented precious metals exploration and development company with existing production plants. It is management’s objective to become a significant gold and precious metals producer by re-initiating and increasing production levels at La Currita, Lluvia de Oro and Picacho, and developing the San Miguel, La Millionaria, Pilar De Mocoribo and Las Minitas projects in Mexico. We continue to acquire other advanced-stage projects and/or producing mines in one of the most prolific precious metal districts in the world. For more information, please visit the Company’s web site at: .
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