Welcome To The Quadra Mining HUB On AGORACOM
Quadra provides a strong investment vehicle to movements within the base metals sector
Message: Improves Robinson Mine Plan, Lowers Costs and Increases Production Guidance
| January 29, 2009 | ||
| Quadra Mining Improves Robinson Mine Plan, Lowers Costs and Increases Production Guidance | ||
|
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2009) - (All figures in US$ unless otherwise noted) Quadra Mining Ltd. (TSX:QUA) ("Quadra" or "the Company") is pleased to announce a revised mine plan and increased 2009 copper production guidance for its 100% owned Robinson Mine ("Robinson") in Ely, Nevada. The Company's guidance for its Carlota mine remains unchanged. The Company has continued to evaluate alternate mine plans for Robinson that will allow for continuity of operations through the current global economic downturn and beyond. As a result, management has developed, and is proceeding with a new mine plan that is expected to result in significant cost savings and increased copper production in 2009 and 2010. The new plan requires a copper price in the range of $1.50/lb to cover operating and capital costs, maintain an appropriate minimum cash balance and facilitate continuous production at Robinson going forward. The new plan alters the sequencing with mining now transitioning from the existing Veteran pit to a small satellite pit ("Kimbley Wedge") in 2010 and then to Ruth at the end of 2010. The Ruth pit will be mined in two stages, in a way that defers dewatering as well as delivering the blending balance required for optimum metallurgical results. This plan was developed based on additional information acquired from recent hydrological drilling and piezometer testing which now suggests lower dewatering requirements at Ruth. The completion of the drilling and metallurgical program that commenced in 2007 supports the new plan, providing the appropriate ore sequencing for a blending strategy. The previously announced Veteran extension (see Press Release: December 1st, 2008), which adds two years of additional reserves, will now be deferred until after the ultimate Ruth pit has been completed. This deferral significantly reduces stripping requirements in each of 2009 through 2011 together with the associated operating costs. Capital expenditures are also expected to be lower in 2009 due to lower dewatering requirements and reduced equipment purchase commitments. The following table shows the revised guidance for Robinson, and compares this to the previous guidance. Cost assumptions are based on the current environment for input costs. The previously stated production guidance for Carlota remains unchanged at 50 million lbs of cathode for 2009. The Company cautions that there is currently very broad volatility in all aspects of its business and, accordingly, actual results may vary substantially from all guidance and forward-looking information in this press release. See the discussion of assumptions and risks underlying this forward looking information at the end of this release. --------------------------------------------------------------------------
2009
2009 Prior Forecast
Robinson Mine: New Forecast (December 1st 2008)
--------------------------------------------------------------------------
Copper production 140 million lbs. 130 million lbs.
--------------------------------------------------------------------------
Gold production 100,000 ounces 125,000 ounces
--------------------------------------------------------------------------
Onsite Costs ($ millions) (2), (3) $ 195 $ 220
--------------------------------------------------------------------------
Offsite Costs ($ millions) (3) $ 65 $ 60
--------------------------------------------------------------------------
Total onsite and offsite
costs ($ millions) $ 260 $ 280
--------------------------------------------------------------------------
Cash cost per pound of copper
produced (C1) (1), (3) $1.30 $1.40
--------------------------------------------------------------------------
Capital expenditures and
bonding ($ millions) $ 30 $ 40
--------------------------------------------------------------------------
(1) Cash cost per pound of copper produced in 2009 assumes gold by-product
revenue at $800/oz.
(2) Onsite costs in 2009 assume a diesel price of $2.32/gallon.
(3) Non-GAAP financial measures (see section below).
An updated Technical Report on Robinson containing the details on the revised reserves will be filed on SEDAR shortly. Quadra's President & CEO, Paul Blythe says, "As indicated in early December, we believe that the mid to long term fundamental drivers of the copper market remain in place but short term volatility demands that every viable option be evaluated. We have continued to search for a plan that will allow Robinson to continue operating through this economic downturn and participate in future copper markets. This new schedule is not only expected to keep us operating at current copper prices, but will also increase our annual copper production for this and the next two years." "Planning at any time is based on the information at hand, and recent information has allowed us to pursue an option we had previously considered but were unable to support until we were confident that it could be executed. We are pleased that the Robinson team has come up with a solution that is expected to achieve our core objective of optimizing continuous production in the present metal price environment." Paul Blythe concludes, "We will of course continue to review market conditions for copper and gold, as well as any positive impact of input costs which are under downward pressure. For now, we are confident that we will be able to continue to operate at both Robinson and Carlota in the current market conditions while maintaining our cash balance objectives and pursuing our corporate growth strategy." Conference Call Paul Blythe, Quadra's President and CEO will host a conference call to discuss this revised mine plan. The details are as follows: Date: Thursday, January 29th, 2009
Time: 11.00 am (Eastern Time)
Webcast: www.quadramining.com
Dial in: 416-695-9757 or 866-542-4270
Replay: 416-695-5800 or 800-408-3053
Replay Passcode: 3281895
Non-GAAP Financial Measures The cash cost per pound of copper produced, and onsite costs and offsite costs are non-GAAP financial measures that do not have a standardized meaning under Canadian Generally Accepted Accounting Principles ("GAAP"), and as a result may not be comparable to similar measures presented by other companies. Management uses these statistics to monitor operating costs and profitability. Onsite costs include mining costs, equipment operating lease costs, mill costs, mine site general and administration costs, environmental costs and royalties. Offsite costs include the costs of transportation, smelting and refining of concentrate. The cash cost per pound of copper produced is the total of onsite and offsite costs less by-product revenues, divided by pounds of copper produced. About Quadra Mining Ltd. (TSX:QUA) Quadra is a mining company that owns and operates the Robinson copper mine ("Robinson Mine") near Ely, Nevada. In addition, Quadra holds a 100% interest in the Carlota copper mine ("Carlota"), a heap leach - SX/EW copper operation in Arizona. The Company also has a 100% interest in the Sierra Gorda project ("Sierra Gorda"), a late stage exploration property in northern Chile, and a 99% interest in the Malmbjerg molybdenum project ("Malmbjerg") in Greenland. The strategic plan of the Company includes growth by optimising operations, developing projects, and pursuing merger and acquisition opportunities. |
Loading...
Loading...
New Message
Please
login
to post a reply