Pan American Goldfields Reports Q1 2012 Pilot Production and Revenues from The Cieneguita Project and The Completion of $2.1 Million Private Placement

Pan American Goldfields Reports Q1 2012 Pilot Production and Revenues from The Cieneguita Project and The Completion of $2.1 Million Private Placement PR Newswire VANCOUVER, British Columbia, July 23, 2012 VANCOUVER, British Columbia, July 23, 2012 /PRNewswire/ -- Pan American Goldfields Ltd. (OTCQB: MXOM) (the "Company") is pleased to announce mineral production and revenues received from pilot production at its Cieneguita Project located in Chihuahua, Mexico for the quarter ending May 31st, 2012. In the Company's first quarter 2012 (the three months ended May 31, 2012), its joint venture with Minera Rio Tinto (MRT), a private Mexican company, generated net cash flow from pilot operations of approximately $2,960,000, of which $592,000 is attributable to Pan American under the joint venture agreement. Pan American's percentage interest in the cash flow from the pilot operation, which was financed entirely by MRT, is 20% in the shallow ores mined (up to 15 meters) and 80% below that level. The pilot mining is focused on a higher-grade zone of mineralization in pit 3. The most recent month's pilot production (June 2012) reached a record 1,624 oz/Au eq. compared to 1,280 0z/Au eq. in May. Production during the first quarter averaged 471 tons per day with an average Au recovery of 89.5% and an average Ag recovery of 90%. The average head grade was 1.42 grams/ton Au and 83.6 grams/ton Ag.