NEW YORK, NY, Mar 23, 2009 (MARKET WIRE via COMTEX) ----Hidalgo Mining International (http://www.hidalgominingint.com/) (PINKSHEETS: HMIT: undefined, undefined, undefined%), an innovative mining company headquartered in Port Washington, N.Y., announced today to shareholders its new production plan in Ghana, West Africa.
Mark Daniel Klok, President of HMIT, stated, "Due to the recent coup and instability in Guinea, management has implemented an alternative production plan to protect its shareholders from further political risk, an unstable environment and any unnecessary risk arising from the Fifa project."
Management was able to quickly maneuver and successfully complete its joint venture agreement with Castle Peak Mining Ltd. to begin production on its gold project located in Ghana, West Africa. Fortunately the Company had previously invested its capital into a fleet of equipment which could be easily transported, saving the Company a significant amount of time and money.
The Ghana Project has substantially better infrastructure, paved roads, a skilled local labor force, nearby water access, mining service companies in close proximity, 24 hour electricity and a stable English-speaking government. In light of this new venture, we have made plans to ship all of our equipment from the Fifa Project to Ghana. Once the move has started, it should take only approximately 5 to 6 days for our personnel to drive the cargo across country to the production location. The new Ghana mining plan which is currently being formulated by the Company's Engineer and Geologist, Mr. Lee R. Rice, is expected to be completed within the next 14 days. This mining plan will set the Company in motion and allow production to commence almost immediately after funding is closed and setup is completed.
The Company's Guinea strategy has now shifted from production to additional exploration. A more detailed and intensive exploration program from pitting, trenching to drilling will continue until such time that the new government settles in, the minister signs off on the pending Fifa mining license, and the overall resource of the project is expanded.
When asked about the decision to shift the Company's efforts to Ghana, Mr. Klok replied, "In light of the recent coup, political risk and unnecessary hardships faced with the Fifa project directly, the decision to shift our efforts to the Castle Peak Project were clear cut and evident as the right move to preserve shareholder value. When looking at the most prevalent differences between the two projects, I based my decision on political stability, a well developed infrastructure, a significantly smaller stripping ratio, easy water access and an equally good if not better gold content."
Mr. Klok further stated, "The Guinea project has 8 to 10 meters of overburden on average where the Ghana project has only about 1 to 1.25 meters of material total which makes the project less expensive to produce and therefore more profitable for our shareholders. Additionally, the grades of gold found in the Ghana project range from 1 to 8 grams per ton which is very similar to those found in Guinea, but with all of the other positive factors that Ghana has going for it, it became very clear that this was the right move going forward for the Company as a whole."
The Company is planning a closed door meeting in Jesup, Georgia within the next 2 weeks time before beginning to redeploy personnel on the ground in Guinea.
CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release other than statements of historical fact are "forward-looking statements" that are based on current expectations and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the statements, including, but not limited to, the following: the ability of Hidalgo Mining International to provide for its obligations, to provide working capital needs from operating revenues, to obtain additional financing needed for any future acquisitions, to meet competitive challenges and technological changes, and other risks. Hidalgo Mining International undertakes no duty to update any forward-looking statement(s) and/or to conform the statement(s) to actual results or changes in Hidalgo Mining International's expectations.
Mark Daniel Klok
Hidalgo Mining International
SOURCE: Hidalgo Mining International