CHICAGO, IL — (MARKET WIRE) — 06/19/08 — Tara Minerals Corp. (PINKSHEETS: TARM), a subsidiary of Tara Gold Resources Corp. (PINKSHEETS: TRGD) (FRANKFURT: T8N), is pleased to announce that zinc, lead, and silver production from its 100% owned flagship project, the Don Ramon and Lourdes property in Sinaloa State, Mexico, is targeted for the month of July, 2008. The production plant is in the final stages of completion and is designed to produce at the rate of 300 tons per day.
The Don Ramon prospect is 331 hectares in size and is located 20 km ENE of Choix, Sinaloa State, Mexico. Preliminary evaluation of the property identified a former, abandoned mine and extensive Pb-Zn-Ag sulfide mineralization that forms mantos and chimneys. Mineralized structures lie within a complex suite of volcanic-granitic and sedimentary (carbonate) rocks. The project is located in the southern part of the La Reforma Mining District of NE Sinaloa State, Mexico. The La Reforma Mining District has been mined for more than 300 years, with substantial amounts of precious and base metals produced from numerous mines. The district has, to the best knowledge of Professional Geologists, never been explored systematically using present day, industry standard, exploration methods, including geochemistry, geophysics, and geology. Tara Minerals feels that many of the former mines and abandoned mines, in the region, are excellent exploration targets and may potentially host substantial base and precious metal resources that were never explored or exploited quantitatively and qualitatively due in part to market conditions, lack of technology, or lack of funding by the former operators and owners.
Detailed surface sampling and road construction have been completed. Initial mining of ore is planned from 7 mineralized zones. Permits needed to move towards active mining have been obtained. Purchased mining and processing equipment, capable of processing a minimum of 300 tonnes per day, is nearing completion. Water source for the property has been acquired and a well to supply water to the plant is nearing completion. High voltage electrical service has been supplied to an electrical substation which will supply power to operate the Plant. Multiple markets for the sale of concentrate have also been identified.
Tara Minerals’ President Francis R. Biscan said, “We recently achieved a milestone with the public listing of Tara Minerals. With the quiet period now over, we want to provide an update to let our shareholders know that Tara Minerals is close to yet another important milestone — positive cash flow. The credit for this progress goes to the men and women at the Don Ramon Mine. Without their expertise, teamwork and relentless efforts this simply would not be possible. We are grateful to the community, employees, vendors, support of shareholders, investors and look forward to achieving our goal of long-term sustainable production.”
Tara Minerals will provide updates on production and development activities going forward. For additional information, including pictures of plant progress, please visit the website at .
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company’s control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission.