HOUSTON–(BUSINESS WIRE)–Rock Energy Resources, Inc. (OTCQB: RCKE) announced today that in line with prior expectations, first sales of gold have commenced from its Red Arrow mine located in Mancos Colorado. The delivered product had a purity of .9 and is being further refined by the purchaser. In addition to gold, quantities of platinum and palladium were also processed and delivered.
Sales will ramp up steadily over the next six months as the Company’s 200 ton per day capacity mill is geared up. Yields of gold continue to exceed one ounce per ton in addition to smaller quantities of platinum and palladium. Several hundred pounds of concentrates are now being processed. Based on results to date and the excellent functionality of the mill, the Company anticipates achieving a positive cash flow from its operations within the next six months and achieve continued growth in revenues and cash flows through at least 2014.
The Company also announced that core-hole drilling will begin the week of May 15, 2012. Five holes are currently planned to high-grade reserves in the existing mine operations. Additional locations are being picked for deeper core drilling to 10,000 feet to validate what are believed to be potentially significant deposits at that depth.
Commenting on the commencement of sales and other activities at the mine, Rocky Emery, Chairman and CEO stated, “Our Company is a Production Stage company with hundreds of pounds of concentrates available to process now. We now have cash flows that will be ramping up over the next several quarters beginning this month and are forecasted to continue to do so through 2014. We are also equally excited about our substantial exploration potential that has been identified by our proprietary aero-magnetic survey at horizons well below our current operations. As cash flow increases we will be concurrently validating those reserve potentials.
Mr. Emery continued, “This is an exciting time for Rock, and we will be discussing our Company’s strategies and outlook at three upcoming investor conferences over the next thirty days. We believe it is important to keep our shareholders fully and responsibly informed on our very rapidly unfolding developments on both the production and exploration sides of our business.”
CAUTIONARY STATEMENT REGARDING FUTURE RESULTS AND FORWARD-LOOKING STATEMENTS: This Web site and press release contains information, including statements as to the Company’s future financial or operating performance, that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements are intended to be covered by the safe harbor created by such sections and other applicable laws. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such forward-looking statements include, without limitation: (i) estimates of future mineral production, results and sales; (ii) estimates of future costs applicable to sales, other expenses and taxes, for specific operations and on a consolidated basis; (iii) estimates of future capital expenditures, construction, production or closure activities; (iv) statements regarding future exploration potential, asset potential, potential resource expansion and targeted production; (v) estimates and expectations regarding reserves, nonreserve mineralization and potential ounces; (vi) statements regarding fluctuations in capital and currency markets; (vii) statements regarding potential cost savings, productivity, operating performance, and cost structure; (viii) expectations regarding the development, growth, mine life, production and costs applicable to sales and exploration potential of the Company’s projects; and (ix) expectations regarding the impacts of operating technical or geotechnical issues in connection with the Company’s projects or operations. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) certain price assumptions for gold, copper and oil; (iv) certain effective tax rate assumptions (v) prices for key supplies being approximately consistent with current levels; and (vi) the accuracy of our current mineral reserve and mineral resource estimates. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the jurisdiction in which we operate, changes in governmental regulation, including taxation, environmental, permitting and other regulations, and judicial outcomes The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” to reflect events or circumstances after the date of publication, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Rock Energy Resources, Inc.
Rocky V Emery, 713-400-3013
Chairman & CEO
Managing Member American Patriot Gold