Coniagas Resources is one of Canada's longest continuously listed 
mining companies, having been founded in 1906. The Company has 
spawned numerous well-recognized mines and companies over the 
years including the Pamour and Coniarum mines in Timmins, 
Bachelor Lake Gold Mines, St. Andrew Goldfields, and was an 
initial producer in the Cobalt mining camp.

Coniagas Resources Ltd.     [CNY:TSX-V]  

Pinos Project, Zacatecas. Coniagas Resources Ltd. entered into a Letter of Intent to acquire a  70% operating interest in a gold and silver leach project, subject to completion of satisfactory due diligence and normal regulatory approvals. The Pinos Project is a privately held property located in the central Mexican state of Zacatecas, that country's second most prolific precious metal producing area. Coniagas will earn its interest in the Pinos Project by completing a positive feasibility study and financing the construction of the process facility, estimated to cost approximately US$2 million. 

Coniagas will initiate a complete independent evaluation of the Pinos project over the next several weeks to confirm the reserves, metallurgical recoveries and environmental impacts for the 5-year project that can be characterized as a true "Sustainable Development Project". An in-house evaluation of the Pinos project suggests that establishing an operation to process the previously mined materials can yield significant amounts of gold and silver annually at low cash costs over the project's life. 

Preliminary plans at Pinos call for vat leaching of dump and stockpiled materials that carry significant precious metals values using a non-toxic leaching agent, sodium thiosulfate. The metallurgical studies are to be carried out by the well-respected McClelland Metallurical Laboratories in Reno, Nevada, a group experienced in the application of this technology. There are other operating properties in the area successfully utilizing the same metallurgical technology. 

Although requiring somewhat longer leaching times when compared to cyanide (60-72 hours vs. 24-36 hours) to obtain similar recovery results, the use of sodium thiosulfate removes the environmental concerns regarding detrimental effects on animals and water resources. It also provides the benefit of releasing the nutrients, nitrogen and sulfur, into the soil as it decomposes after use. Upon completion of metal recovery, the processed materials will be made available to local farmers for use as a soil enriching fertilizer at no cost. 

 Robert Schafer, President and CEO of Coniagas Resources, comments that "The Pinos project is the first of several opportunities that we are considering in Canada, the US and Mexico that can return Coniagas to the ranks of the mid-tier precious metals producers." In recent years the Company's activities have been as a non-operating partner in exploration joint ventures.

Press Release 28Jan03