CHICAGO, June 15, 2005 (PRIMEZONE) -- American Stellar Energy (Pink Sheets:AMRS) is pleased to report that it, through it's 97% owned Mexican subsidiary Amermin, has now taken over the management and full control of the La Currita Mine and Ore Processing Plant two weeks ahead of schedule. The company will now receive all revenues generated from the operations.
There are currently 1,300 tons of ore stockpiled for immediate processing, and mining continues at the La Currita site at the rate of about 75 tons per day. Amermin has also negotiated an ore contract to supply ore from a non-owned nearby mine to generate material to increase the rate of production at the mill.
The plant was down for routine maintenance. It will start operating again today at the rate of approximately 80 tons per day. Based on ore run just prior to maintenance, the ore grades on the pads are expected to be better then 5 grams gold and 100 grams silver per ton. Recovery rates have been approximately 80% for gold and 40% for silver. Previous operating costs at the plant have been running at about $40,000 per month.
Mr. Francis Biscan Jr., President of American Stellar Energy stated, "We are excited with the opportunity to produce cash flow ahead of schedule. Our goal will be to increase production rates to the capacity of the plant, which is 150 tons per day and increase recovery rates to maximize the plant's potential."
American Stellar Energy is currently reviewing other significant gold and silver properties in the Guazapares District. The district seems to hold exceptional opportunities to grow our property base.
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications which may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above.