Franklin Mining, Bolser sign agreement for Bolivian mine project

17 January 2012 (Last Updated January 17th, 2012 18:30)

Franklin Mining has finalised a six-month agreement with Bolser to provide civil and mechanical works for the Escala mine project located in Potosí, Bolivia.

Franklin Mining has finalised a six-month agreement with Bolser to provide civil and mechanical works for the Escala mine project located in Potosí, Bolivia.

Bolser will be providing civil and mechanical work services which include construction and maintenance, mass earth movement, camp and plant construction and maintenance and railroad construction.

Franklin Mining president Mustafa Dar said they are excited to be standing on the threshold of production on the Escala Mine.

"Bolser Ltda. is familiar with the property, and we believe this project is the launch of what we anticipate will be a series of great successes," Dar said.

Franklin Mining will provide $800,000 to Bolser to complete the works. The company estimated the monthly production at the mine to be in the range of 3600 tons a month.

The value of the project will be in the range of $1500 a ton for one tunnel, based on the last 80 tons delivered to Comibol.

Comibol is a Bolivian state miner which manages the state's interests in mining concessions, metallurgical and industrial plants through joint ventures, lease and / or service.

Previously in 2009, Franklin Mining entered into a strategic alliance agreement with Bolser. Canada-based SGS Research Limited conducted tests at the mine. The results revealed the mine has high grade mineralisation.

The certificate of analysis was for testing the content of gold, silver, zinc, lead, arsenic, cadmium, bismuth and copper.
Gold content ranged from .02 g/t to .13 g/t and silver ranged from 3.2 g/t to 253 g/t, the company said.

The other mineral elements spanned over various ranges but are not integral to the company's current commercial plan.