LAS VEGAS, Feb. 1, 2013 /PRNewswire/ -- Maxam Gold Corporation (OTCPINK: MXAM) http://www.max-amgold.com, a leading gold mining and development company, announced today that a Canadian Company with an adjacent concession has started production and is willing to process material on a contract basis for Pembina.
Charles Langrill, President and CEO of Maxam Gold Corporation, stated: "An adjacent concession has taken delivery of a portable mill and processing equipment. This equipment will be up and operating within 60 days and has the capacity to process 300 metric tons per day. The company has offered to process material for Pembina Limitada on a contract or fee basis. This opportunity has enormous implications for Pembina Limitada, S.A. and Maxam Gold Corporation. This will allow for Pembina Limitada to begin production with a smaller up front investment in equipment upgrades and infrastructure, and shorten the time to get into full production. Now Pembina can focus short term investment on equipment that is needed to move the overburden and access the gold bearing material. With this opportunity, Pembina will now have the ability to show it's true potential, while generating revenue."
Pembina Limitada, S.A. will start processing 100 to 150 metric tons per day and will increase production as it's own equipment is delivered to the concession. This will result in revenue of approximately $700,000 per month in gold sales at an estimated cost of $250,000, with a projected profit margin of 64%, or $450,000 per month. Overall profitability for the company will increase as equipment is acquired and put into production. Maxam believes the price of gold will continue to increase because of the overall debt problem in the US and Europe.
About Maxam Gold Corporation.
Maxam Gold Corporation is a leading gold mining and Development Company based in Nevada with claims in the western United States and Nicaragua. Maxam Gold Corporation was formed in 1975 and has been involved in the mining and exploration of gold since 1985. The current expansion in the price of gold has revitalized the company and its policy of acquiring gold production through acquisition of gold productions company and providing the capital to expand the profitability and production of current operations.
SOURCE Maxam Gold Corporation