Mercator has record month at its Mineral Park Copper Mine
Thursday June 8, 8:51 am ET
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TRADING SYMBOL: TSX - ML
VANCOUVER, June 8 /CNW/ - Mercator Minerals Ltd. is pleased to announce a significant increase in net operating income at the Company's wholly owned Mineral Park Mine in Arizona. Net operating income for May 2006 was (unaudited) US$2,507,831. Average cash cost for the month of May fell to US$0.95 per lb. Ore production from the pit was 363,474 tons at an average grade of 0.32% copper. Copper sales for the month of May were 895,434 lbs of cathode copper.
Michael L. Surratt, the Company's President and CEO stated: "Cathode production at Mineral Park is increasing; we have completed most of the changes to the SX/EW plant and have completed the refurbishment of the primary loading units. Mining tonnage production is now above plan. Although we experienced an electrical outage in April, it was still a very profitable month. June has started where May left off and we expect to have an outstanding quarter."
The Company is also realizing top dollar from its cathode marketing program. Over the last month the Company averaged US$3.73 per pound, after transportation and marketing costs for the cathode produced.
Phase 4 Expansion
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Significant progress has been made on the feasibility study for the resumption of milling operations at Mineral Park with the objective of achieving a significant increase in copper production, to a total of approximately 40-50 million pounds of copper per year, and adding approximately 7-8 million pounds of molybdenum per year by the end of 2007. The reserve estimates are complete and the final report is being written. Additional studies have been commissioned to optimize throughput to more than 30,000 tons per day. The throughput optimization studies add a couple of weeks to the timing of the feasibility study but are critical to maximizing production.
The Company plans to relocate the recently purchased 20-30,000 ton per day concentrator to Mineral Park. A pre-feasibility study on this Phase 4 expansion is anticipated to be complete later this month.
Phase 4 Equipment Purchase
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The Company has been informed that the first of two hydraulic shovels for the Phase 4 expansion is being shipped and is expected to arrive at the mine in July. The shovel is planned to be assembled and operational in August 2006.
Jim Tompkins, P.Eng., the Company's Mine Manager, a Qualified Person as defined by NI43-101, supervised the preparation of and verified the technical information contained in this release.
Mercator Minerals Ltd.
Mercator Minerals is a copper producer that owns and operates the Mineral Park SX/EW Copper Mine in Arizona, with a corporate strategy focused on maximizing the production potential of the Mineral Park copper-molybdenum deposit.
On Behalf of the Board of Directors
MERCATOR MINERALS, LTD.
Per: "Michael L. Surratt"
Michael L. Surratt,
President and CEO
This press release contains certain forward-looking statements, which include estimates, forecasts, and statements as to management's expectations with respect to, among other things, the size and quality of the Company's mineral reserves and mineral resources, future production, capital and mine production costs, demand and market outlook for commodities, and the financial results of the Company. These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary.
Factors that may cause actual results to vary include, but are not limited to, changes in commodity and power prices, changes in interest and currency exchange rates, inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications, cost escalation, unavailability of materials and equipment, delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), political risk, social unrest, and changes in general economic conditions or conditions in the financial markets. These risks are described in more detail in the Annual Information Form of the Company. The Company does not assume the obligation to revise or update these forward-looking statements after the date of this report or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this press release.
For further information
Marc LeBlanc, Corporate Secretary, Tel: (604) 716-5582, Fax: (604) 960-9661, Email: mleblanc@mercatorminerals.com
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Source: Mercator Minerals, Ltd. |
