Production Update and Injunction Ruling in the Mill Litigation
Monday November 6, 2:58 pm ET
ca.us.biz.yahoo.com
KINGMAN, AZ, Nov. 6 /CNW/ - Mercator Minerals Ltd. (ML-TSX) is pleased to report progress on copper production at the Mineral Park Mine, and production for October 2006. Mike Surratt, President & CEO of Mercator Minerals stated that "October was our best month of operation to date. The mine produced a record 1,061,278 pounds of copper during the month, and generated a record US$3,600,623 in revenue from sales of cathode copper.
Ore production from the pit was a record 433,165 tons at an average grade of .41% copper, total waste and ore production from the pit was also a record 771,502 tons
Current production rates represent a major increase over the beginning of the year, and reflect the effectiveness of the operational adjustments made year to date.
Mr. Surratt stated: "Cathode production at Mineral Park is increasing. Mining tonnage production is presently above plan. November has started off where October left off and we expect to have another record quarter."
The Company is also realizing top dollar from its cathode marketing program. Over the last month the Company averaged US$3.39 per pound, after transportation and marketing costs for the cathode produced.
The Company also reports the Bankruptcy Court in Corpus Christi, Texas, where the Chapter 11 bankruptcy proceeding filed by ASARCO LLC is pending, has granted Asarco's request for a preliminary injunction to suspended further removal of our 20,000 ton per day mill from the ASARCO Mission Mine site south of Tucson, Arizona until a trial can be held.
"We are very disappointed with the outcome of the injunction hearing. We bought the mill in good faith more than a year ago, at the price set by ASARCO as seller, and we expected all parties to live up to the contract," said Mike Surratt. "We will seek an expedited review of the injunction decision once the Bankruptcy Court issues its formal ruling. If we are successful with this appeal, we will be able to recommence removal of the mill for the Mineral Park expansion project. Additionally, we continue to review mill alternatives to completing our planned Phase 4 expansion at Mineral Park."
Mercator expects to file shortly its request for leave to appeal with the United States District Court for the Southern District of Texas, to overturn the Bankruptcy Court's decision on the preliminary injunction.
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. Mercator, in its September 5, 2006, news release, announced positive results from an independent technical study for the expansion of its wholly owned Mineral Park copper mine to a 37,000 ton-per-day milling operation producing copper-silver and molybdenum concentrates in parallel with its current SX/EW copper production. The Company has filed a technical study for an expansion of increased copper production plus molybdenum, and silver production.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
Per: "Michael L. Surratt"
Michael L. Surratt, President
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 Company's Annual Information Form. The Company does not assume the obligation to revise or update these forward-looking statements after the date of this report or release 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) 981-9661, or (604) 716-5582, Fax: (604) 960-9661, Email: mleblanc@mercatorminerals.com
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Source: Mercator Minerals, Ltd. |
