FARALLON MINING LTD : tite news

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28 oct. 2008 •16:34

Farallon Initiates Off-Take Agreement With Trafigura

VANCOUVER, Oct. 28, 2008 (Canada NewsWire via COMTEX News Network) --
Farallon Resources Ltd. ("Farallon" or the "Company") (TSX: FAN; OTCBB: FRLLF) announces that it has initiated the off-take agreement with Trafigura Beheer BV Amsterdam ("Trafigura") for zinc concentrate produced from the Company's G-9 mine at the Campo Morado polymetallic (zinc, copper, lead, silver, gold) property in Guerrero State, Mexico.

G-9 concentrates are being trucked in bulk from the site to the port at Manzanillo, a full service facility utilized by a number of mines in central Mexico. Farallon trucked its first concentrate on October 12, 2008, and since that time some 2,000 tonnes have been transported to the storage facilities at the port. Concentrate shipments will increase to 2,600 tonnes per week once full mine production is achieved.

The contract with Trafigura provides for the receipt of advance payments for concentrates stored at the port. Farallon has chosen to initiate the contract to take advantage of this provision. Payments are to be made in US dollars. An advance payment for 500 tonnes of zinc concentrate, a total of US$133,000, has been received.

President and CEO Dick Whittington said "It is my pleasure to announce receipt of the first payment from production at the G-9 mine. The initiation of our off-take agreements with Trafigura and commencement of revenue generation for the G-9 mine is another major milestone for the Company, achieved through the focused efforts of the project team over the past two years."

Farallon has advanced the G-9 Project through a 'Parallel Track' program. Drilling expanded and confirmed the high-grade mineralization within the G-9 deposit in parallel with project construction and development activities. Underground drilling, stope access and development, and mining using an open stope method is currently taking place in the North and West Extension zones of the G-9 deposit. The mill is mechanically and electrically complete, and commissioning has been underway over the past two months. The rated mill capacity of 1,500 tonnes per day has been achieved, producing zinc concentrate over a sustained period. Completion of access to the high-grade Southeast zone and initial stope development in this zone is expected in December, with full production targeted for January 2009.