THEMAC Resources Gains 100% Ownership Of Copper Flat

VANCOUVER, BC - THEMAC Resources Group Limited on May 18, 2011, made the final payment on the Copper Flat project. Through its wholly owned subsidiary, New Mexico Copper Corporation, THEMAC is now 100% owner of the entire project. Copper Flat is located about 20 miles Southwest of Truth or Consequences in Sierra County, New Mexico."We're very happy to announce this significant milestone," said Barrett Sleeman, Chief Executive Officer of THEMAC. "We are committed to bringing this project to production."

The site was originally an open pit mine developed in 1982, which closed shortly thereafter when the market price for copper dropped. Building foundations and other infrastructure remain in place at Copper Flat. The project will create close to 500 construction and approximately 200 jobs at the mine site. 

"Bringing mine projects such as Copper Flat to production is the goal and objective of this administration," said Cabinet Secretary Designee Jon Barela of the New Mexico Economic Development Department. "This is about job creation and economic survival for Southern New Mexico. We're very pleased to play a role in paving the way for New Mexico Copper Corporation," added Barela.

Final payment to the previous owners was in the amount of USD$7,000,000. Also, on May 16, the company made a USD$1,000,000 payment for the water rights which will be necessary for full production. One final water rights payment in the amount of USD$750,000 is due when plant operations commence. The funds for these purposes amounting to $5 million were advanced by the major shareholder of THEMAC in line with terms of a previously negotiated loan arrangement.

"New Mexico Copper Corporation is dedicated to establishing a dialogue with the residents of Sierra County," said Barrett Sleeman. "We will continue communicating with the community on our plans as our management is environmentally responsible and sensitive to any concerns."

Copper Flat is a former producing mine located approximately 20 miles southwest of Truth or Consequences in Sierra County. Permitting for a return of the project to production is at an advanced stage, and a prefeasibility study is in progress.

The Copper Flat project is a porphyry copper-molybdenum-gold-silver deposit. The deposit has NI43-101 Indicated Mineral Resources of 107 million short tons grading 0.303% copper and 0.01% molybdenum for 645 million lbs copper and 21.4 million lbs molybdenum, plus Inferred Mineral Resources of 46 million short tons grading 0.24% copper and 0.006% molybdenum for 222 million lbs copper and 5.6 million lbs molybdenum.

The gold and silver content of the deposit is evidenced by historic production and metallurgical test work, and gold and silver are targeted for incorporation into the deposit's NI43-101 Mineral Resource statement following completion and interpretation of a re-assay program using historic drill pulps.