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Spectrum Updates Mine Acquisition in Pataz Region, Peru

^{Published on 2009-12-29 04:50:13 - Market Wire}
 

AUSTIN, Texas--([ BUSINESS WIRE ])--Spectrum Acquisition Holdings, Inc. (PINK SHEETS: [ SPAH ]), specializing in mining and mining equipment operations, updates the public markets in regards to its recent targeted Peruvian Gold Production Mining acquisition. Spectrum has recently made positive progress with its new partner located in Lima Peru, as well as aggressive strides in order to acquire 50% interest in the gold mines in the Pataz Region. The following is additional data concerning the ore findings in the targeted area.

Dale Henry, CEO of SPAH stated, "I am very pleased to announce that this acquisition will allow us the opportunity to use our patent-pending green mining technology to decrease our footprint on this region. I look forward to successfully developing the Pataz region as well as having the opportunity to work alongside our new partnership we have formed with a local corporation. What's really exciting for Spectrum and its shareholders is that one of these acquisitions is a restart of a very successful gold producing mine. With projected processing costs at a rate of $250 per ton, both of these pending acquisitions should be very rewarding for Spectrum, especially with gold currently trading around $1,100 per ounce."

The agreement to allow Spectrum to acquire a 50% interest in two production mining acquisitions located in the targeted region is in its final negotiating stages.

Information on the mine:

The name of the mine is "North American", which is located on the district of Pataz in the department of La Libridad, Peru. The geological formation is known as the Pataz Batholith. This gold belt hosts the world's richest gold deposit at Cajamarca where the US owned Yanacocha mine has produced over US$7 billion in gold. The "North American" includes a gallery of quartz veins some as wide as 3 meters across, which has continuous production since the 15th century. Industrial mining ended in the 1980s as the gold market neared $300 per ounce.

Information on the mining costs:

While Peruvian rock mining costs are among the lowest in the world, the "North American" tunnels approaching 500 meters deep require improved ventilation and rail repair. Even with the added requirements, variable costs in the North American mine are still expected to be under $400 per ton while producing the current average grade of 5 to 8 grams per ton and a fineness of over 80% gold with significant silver credits. Having the additional silver credits in this mine make it much more of an attractive targeting acquisition for SPAH and its shareholders. As previously stated, this project is a restarting mine, so there is expectations that much less is needed to set up production again.

Initial small upgrades to the mine:

Infrastructure improvements include a maintained road to the coast and industrial power to the site. A generous processing agreement is in place with terms including ore pickup at the mine paying 50% of the market price for recovered metals transitioning to a flat rate of $235 per metric ton of ore having grades over 22 grams per ton.

Spectrum is working meticulously to close one if not both of these acquisitions in the very near future.

About Spectrum:Spectrum Acquisition Holdings, Inc. is a growing holding company with interests in established drilling and mining equipment manufacturing through its wholly owned subsidiary, Western American Mining Corporation. Spectrum has recently ventured into the market of "green technologies" that will provide "small footprint" drilling technologies, bio-mining, remote controlled exploration modules, GPS positioning of drilling, micro drilling, composite drilling components and other technologies that will minimize the traditionally poisonous and toxic environmental threats posed by the mining industry.

SPAH's subsidiary, Western American Mining Company, contains four patent-pending invention applications. Western American Mining Patents:

1. Intrinsically Safe System for Mineshaft Illumination – AN/20090284983

2. Laser Guidance System for Diamond Wire Cutting Apparatus - AN/12122427

3. Continuous Refractory Ore Bioprocessing Apparatus - AN/12101968

4. Mixing, Milling and Aeration Apparatus for Digesting Metal Ore with Bacteria - AN/121030053

Spectrum is aggressively positioning itself to be a model for Green mining equipment. The Company is currently researching the technique of bioleaching process technology by creating continuous processing equipment useful for isolating gold ore. This technology will increase the yield of high-grade ore by using eco-friendly microbes, as compared to traditional high energy requirements of roasting and autoclaving or deadly use of toxic chemicals.

This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. SPAH has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the SPAH's current beliefs and are based upon information currently available to it. Accordingly, such forward looking statements involve known and unknown risks, uncertainties and other factors which could cause the SPAH's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. SPAH undertakes no obligation to update or advice in the event of any change, addition or alteration to the information catered in this Press Release including such forward-looking statements.