VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/31/12 -- Tirex Resources Ltd. (TSX VENTURE: TXX)(OTCQX: TIRXF) ("Tirex" or the "Company") is very pleased to announce that it has received official notification from Albania's Ministry of Economy, Trade and Energy ("METE") relating to its applications to transition six specific areas in the Mirdita VMS District from exploration licenses into 25 year exploitation (mining) licenses.
METE has ruled, in respect of Tirex application numbers LC-9817-08-2011, LC-9820-08-2011, LC-9822-08-2011, LC-9818-2011, LC-9821-2011 and LC-9819-08-2011 which encompass the deposits known as Fushe Arrez, Qafe Bari, Tuc, Paluce, Gurth 1 and Gurth 2 (Central Gurthi and Koshaj), Gurth 3 and Letitna (South Gurthi and Letitna), to immediately effect the conversion of the exploration licenses to exploitation licenses.
Tirex is pleased that METE, after a careful and detailed review of Tirex's exploitation license applications, has ordered the immediate issuance of all of the Tirex license applications, as applied for. Tirex received official notification of this via Protocol No. 9334, signed and sealed by the Republic of Albania's Deputy Prime Minister and Minister of Economy, Trade and Energy, Minister Edmond Haxhinasto.
Tirex sincerely thanks the Republic of Albania and METE for their detailed review of the Tirex mining applications and the decision to approve and order exploitation licensing in all six areas as applied for.
Mining operations in these six areas is expected to create significant employment, infrastructure growth and economic development in northern Albania.
Tirex has invested USD $25 million into its exploration of the Mirdita District. Today's news represents the first conversion of exploration licenses in Albania into exploitation licenses in the Albanian copper, gold, silver, and zinc industry under current Mining Law. Tirex serves as an example of the fact that the Republic of Albania welcomes the investment of risk capital in the mining sector and demonstrates that companies are able to transition from exploration into production licensing within the regulatory framework.
Tirex Chief Executive Officer, Bryan J. Slusarchuk, states, "This is a significant day not only for Tirex shareholders but also for the local communities in northern Albania that will benefit from this decision to grant all six mining licenses to Tirex, as applied for. During the 14 month process since Tirex first applied for licenses, the Company was very fortunate to receive the unanimous support of the communities near the Company's operations. This is in part due to the significant employment and economic growth that will be created due to this license approval and also due to Tirex's close relationships and integration with the communities, and the Company's ongoing emphasis on the highest international standards in terms of environment, safety, and community."
Tirex has a Partnership Agreement relating to production from these six areas, through which the Company can fast track into production without corresponding share dilution (see Tirex News Release dated September 6th, 2011). Initially, the Partnership is targeting 500tpd of production with a target to ramp up to 2000tpd of production by Month 24. Mill capacity is currently available for the first phase, with the mill fully constructed and operational. The initial production profile will consist of copper, gold and silver. It is anticipated that production will commence initially in Tirex's Tuc deposit area via a trackless mining system, utilizing transverse long hole sublevel retreat mining method which is currently in use at BerAlb's Lak Roshi Mine. Tuc contains 2,350,366 tonnes of 1.46% Copper(i) according to historical remaining uncategorized resource estimates (Albanian Geological Survey circa 1991) but is reported to remain open for expansion as the deposit area has never been drilled from underground set ups. Ground geophysics, surface and underground drilling and borehole (EM) geophysics will be utilized to define and expand the resource size in compliance with NI43-101 methods at this deposit area as mine production commences.
In addition to targeting production at six specific areas of Mirdita, Tirex intends to explore other areas of the District, targeting new potentially economic discoveries. The Tirex technical team, based on historical data compilation and extensive exploration work to date, believes the District is highly prospective for new discoveries. Select Tirex assay results to date in the Mirdita District as reported in previous Tirex news releases include core length intercepts of 65m of 0.6% Cu, 9.0% Zn, 48.4 g/t Ag and 2.7 g/t Au (Koshaj); 7.7m of 5.23% Cu, 1.84% Zn, 57.0 g/t Ag and 4.6 g/t Au (Gurthi); 19.3m of 3.66% Cu, 1.13% Zn, 8.3 g/t Ag and 1.2 g/t Au (Gurthi); and 46m of 0.7% Cu, 2.68% Zn, 20.8g/t Ag and 1.6 g/t Au (Letitna). In addition to work done in the six areas now approved to transition into mine production, Tirex has in excess of 40 high priority geophysical targets in the exploration permit application and has prioritized areas with high silica rhyolite domes and proximal laterally equivalent strata that host VMS deposits. Exploration will consist of surface and borehole geophysical surveys and drilling. With METE's approval now complete, Tirex will update investors in the coming months as to the Company's technical strategy on the ground as it advances towards mine production and a re-commencement of exploration targeting new discoveries.
Tirex management sincerely appreciates all of the support exhibited by investors in the Company over the past 14 months, including the European Bank for Reconstruction and Development ("EBRD"), a major financial backer of Tirex.
(i)Historical resources referred to are not compliant with NI 43-101 and should not be relied upon. Tirex has not verified these historical resources and has not reviewed the assumptions, parameters and methods used to prepare the historical resource estimate. No Qualified Person has done sufficient work to classify the historical estimate as current and Tirex is not treating the historical estimates as current mineral resources or reserves but considers them important as a guide for future work in the District. Also, a feasibility study has not been completed and there is no certainty the proposed operation will be economically viable. Mr. Fred Tejada, P.Geo., Tirex President, and a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for the technical content of this news release.
On Behalf of Management,
Bryan J. Slusarchuk, Chief Executive Officer
Forward-Looking Statements. This News Release may contain certain "forward-looking" statements and information relating to Tirex. Such statements include but are not limited to statements about the exploitation licenses, the Partnership Agreement, the production arrangements and the timing of mine development, and production. Often forward-looking statements or information include words such as "plans", expects", "intends", "anticipates", "estimates" "forecasts", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or will be taken occur or be achieved. Although forward-looking statements and information contained in this release are based on the beliefs of Tirex management, which are considered to be reasonable, as well as assumptions made by and information currently available to Tirex management, there is no assurance that the forward-looking statements or information will prove to be accurate. The forward-looking statements and information contained in this release are subject to current risks, uncertainties and assumptions related to certain factors including, without limitations, obtaining all necessary approvals, feasibility of mine and plant development, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events as well as risks, uncertainties and other factors discussed in our quarterly and annual and interim management's discussion and analysis. Should any one or more of these risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results may vary materially from the forward-looking statements and information described herein. Accordingly, readers should not place undue reliance on forward-looking statements and information contained in this release. We undertake no obligation to update forward-looking statements or information except as required by law.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release."
Tirex Resources Ltd.
Bryan J. Slusarchuk
Chief Executive Officer