The Company is a junior gold/silver producer actively engaged in the exploration and development of its Mina Real and Santa Fe Properties, comprising 11,181 hectares of gold/silver mineral concessions located in the State of Nayarit, Mexico. Nayarit is located in the Sierra Madre Occidental range, the largest epithermal precious metal region in the world, which hosts the majority of Mexico’s gold and silver deposits. The Company substantially completed the construction of a cyanidation processing plant at the end of December 2006. Initial milling operations commenced in January 2007 with the commissioning process being completed by May 31, 2007. The Company has, in a very compressed time frame, acquired, developed and brought into production a gold property in Mexico. The Company now has an operating mill which generates cash flow from operations. The Company is planning an aggressive exploration a 7000m drill program and 2000m drift development program that will determine the next steps for mine development and production levels. Rochester is well positioned to advance its projects and can very quickly become a major player in Mexico. It has a strong senior management team based in Mexico, the workforce in place having the ability to advance its projects, and the capital to implement the work programs move our exploration properties towards production properties and provide a long term revenue stream.
The Company trades on the TSX Venture Exchange (“TSXV”) under the symbol “RCT”, the Frankfurt Stock Exchange Open Market under the trading Symbol “R5I” and on the Over the Counter Bulletin (“OTCBB”) under the symbol “RCTFF”.
Mina Real Mill Operations
Commissioning of the Mina Real mill began in January 2007 and the first gold and silver precipitate was delivered to the refinery in early February.
Since May 2007, production has ramped up steadily from average production levels of 150 tonnes/day to average levels of about 200 tonnes/day by the end of the first fiscal quarter. The current recovery rate for gold is surpassing 90% and beginning to approach our initial target of 94%. Additional metallurgical testing is in process to define the necessary modifications to improve the silver recovery.
Mina Real Mining Operations
During the three month period ended August 31, 2007 the Company continued with development mining activities in order to prepare the initial mining area at Florida for increased production. Mine development activities are continuing at the Florida triple vein structure with current activities concentrating on ramping down to level 1090 and below to determine the base of the mineralization which remains open to depth.
A comprehensive sampling of the ramp development from Level 1115 down to Level 1090 was undertaken during the last quarter and assays were received from SGS Laboratories, an independent ISO 2000 certified laboratory. The independent assays from 58 ramp channel samples taken over approximately 120 metres of development within the vein system indicate an average vein width of 1.35 metres with average grades of 17 grams/tonne gold and 139 grams/tonne silver. On the upper ramp to Level 1115, grades on 11 contiguous channel samples taken over approximately 20 metres of vein structure averaged 30.8 grams/tonne gold and 212 grams/tonne silver and an average width of 1.33 metres. Six of these samples ranged between 26.7 and 59.1 grams/tonne gold. The lower ramp has so far produced an average grade of 15.1 grams/tonne gold and 116 grams/tonne silver from 19 channel samples taken over approximately 38 metres.
Santa Fe Property
Rochester Resources has acquired a 70% interest in the Santa Fe gold-silver property located 6km east of its Mina Real Milling facility in Nayarit, Mexico. The property covers approximately 3800 hectares, and previous work has identified ten zones of epithermal veining and mineralization on the property.
Santa Fe is the Company's highest priority exploration target; the Company will be implementing a 3000 metre diamond drill program and an 800 metre drift development program at Clavellinos and several other parallel vein systems. The Company believes there is significant potential to discover a stand-alone deposit capable of supporting its own mill. In addition, the Company has identified 26 other vein systems across the Santa Fe property with several vein systems striking greater than 4 kilometers traced along surface. Of note, the "Clavellinos" vein system, at its north end, has a 40 meter wide mineralized alteration zone with three sub-parallel high-grade epithermal veins emplaced within, including a horizon potentially up to 700 meters (twice the horizon found at the Florida Mine). 4+ kilometers away at the south end, the Clavellinos vein system has variable widths between 5 meters and 8 meters traced at surface.
The work to date has better defined the three main vein systems, all of which trend northwesterly and are sub-parallel with some cross veining. From west to east, these are the Jonas system, the Clavellino system, and the Tajitos system.
Of the three, initial indications are that the Clavellino system is the most extensive, having been traced over a length of more than 3 kilometres. The width of this structure varies from 1 metre to 40 metres. At the south end, multiple quartz veins occur over a width of 30 to 40 metres, with mineralization in the intervening wallrocks. At the north end (El Picacho), the vein structure is more discrete, consisting of a 5.4 metre wide zone of silicification.
The Company will be commencing a 3000m drill program and 600m of drift development in Mid-November 2007.
Tajos Cuates Project
The Tajos Cuates vein system is located 1 kilometre southwest of the Florida Mine site and is a primary target in the near term to outline additional potential ore sources for the existing milling operation. The vein system is a robust low sulphidation epithermal vein which has been traced on surface over 1.8 kilometres, and known workings and a historical drill intercept extend over a vertical horizon of at least 200 metres. The mineralization is silver rich compared to the Florida Vein system.
Recent work has extended road access to Tajos Cuates, and initial underground rehabilitation work is underway to allow exploration and bulk sampling of the vein system in detail. In addition, surface work has identified two new mineralized systems in the area, Tomas and El Crudo.
Over the past six months the Company has been conducting drift development at the Tajos Cuates vein system. The Company has discovered an additional two off-shoot veins at this system and like Florida North, the vein system has been traced at surface for approximately 1.5 kilometers. There are significantly higher reported grades of silver at Tajos Cuates versus Florida.
The Company will be implementing a 2000 metre diamond drill program and a 600 metre drift development program over the coming months.
The Company will be implementing a 2000 metre diamond drill program and a 600 metre drift development program at the Florida North project to identify the continuation of the Florida triple vein system. The mineralization at Florida North has been traced at surface for approximately 1.5km to the N-NW of the Florida mine.
The north end of the Florida Veins within the mine workings is defined by a late dacite intrusive which truncates the veins. On surface further north, a number of quartz veins oriented parallel to the Florida trend have been identified in scattered outcrops up to 1.5 kilometres further to the north. Initial exploration for the projected northern continuation of the Florida Vein system was done by means of an underground drive across the intrusive on the 1160 level of the Florida Mine. This work successfully crossed through 180 metres of the intrusive and emerged into highly faulted and altered volcanic rocks to the northwest. The next phase of exploration work will consist of more extensive surface trenching, sampling and mapping of the Florida North system combined with a drill program to identify the exact location of the vein system in Florida North and continued drift development in the form of a cross-cut approached from the northeast.
Position: President, CEO & Director
Jose Manual Silva
Joseph M. Keane
Position: Corporate Secretary