FAN Company is targeting to produce at an annualized production rate of 120 million pounds of zinc and 15 million pounds of copper per year.

Farallon provides operations update

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G-9 Operating at over 1,900 tpd in March


New Daily Throughput Record of over 2,400 tpd Achieved

VANCOUVER, March 31 /CNW/ - Dick Whittington, President and CEO of Farallon Mining Ltd. ("Farallon" or the "Company") (TSX:FAN) is pleased to announce that the G-9 operations have continued to increase throughput rates during the first quarter of 2010 and are now operating consistently at over 1,900 tonnes per day ("tpd"). Metallurgical recovery has continued to improve over the same period with zinc recovery of 84% and copper recovery of 68% in the month of March to-date(1).




<< ------------------------------------------------------------------------- Zinc Copper Conc Conc Period Throughput % of Design Zinc Copper Grade Grade (tpd) (1,500 tpd) Recovery Recovery % Zn % Cu ------------------------------------------------------------------------- Q1 2009 1,190 79% 79% 45% 52% 18% ------------------------------------------------------------------------- Q2 2009 1,260 84% 77% 55% 52% 14% ------------------------------------------------------------------------- Q3 2009 1,275 85% 79% 46% 49% 17% ------------------------------------------------------------------------- Q4 2009 1,552 103% 80% 56% 49% 15% ------------------------------------------------------------------------- Q1 2010(1) 1,672 111% 82% 60% 49% 14% ------------------------------------------------------------------------- Including Mar/10 1,910 127% 84% 68% 49% 13% ------------------------------------------------------------------------- ----------------------------------- (1) First quarter 2010 includes daily operations data for the month of March up to and including March 29, 2010. Results are subject to adjustment upon completion of the final metallurgical balance which will be announced in conjunction with the financial results for the first quarter. >>






Additionally on March 25th, the mill throughput achieved was 2,527 wet metric tonnes (2,402 dry metric tonnes), 68% over the design capacity of 1,500 tonnes per day and a new single-day record for the Company. Based on these results, the Company is re-evaluating the scope of the mill expansion project previously announced on November 16, 2010. The $5.3 million that has been committed to the project may be re-deployed to achieve greater capacity than the 2,000 tpd originally contemplated.


Farallon's President and CEO, Dick Whittington, stated "It is extremely gratifying to see the G-9 operations running well above nameplate capacity only one year after announcing commercial production. It is also encouraging that metallurgical recovery is continuing to improve, despite the high throughput rates. Achieving operational excellence is a key component of our ongoing growth strategy and it appears we are well on the way to doing so".


Farallon's G-9 zinc, copper, silver, gold and lead mine at the Campo Morado Property in Mexico reached commercial production in April 2009. The Company is targeting to produce at an annualized production rate of 120 million pounds of zinc and 15 million pounds of copper per year. For further details on Farallon Mining Ltd., please visit the Company's website at www.farallonmining.com or contact Neil MacRae, Investor Relations Manager, at (604) 638-2160 or within North America at 1-877-688-2050.
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