News release:
VANCOUVER, Dec. 16 /CNW/ - Princeton Mining Corporation is pleased to
announce that on December 15, 1997 the Huckleberry mine shipped its second
load of copper concentrate from the port of Stewart, B.C. This shipment
contained 10,700 wet metric tonnes of copper concentrate. Mill commissioning
is proceeding well. Tonnage rates are at or above feasibility. Mine grades are
as planned while recoveries are still below design, but improving.
Commissioning of the molybdenum circuit is underway and the first
shipment of concentrate is expected to take place early in the new year. The
mine is forecast to produce approximately 120,000 pounds of molybdenum
contained in concentrate monthly.
Huckleberry Mines Ltd.'s revenues are in U.S. dollars while operating
expenses and the Provincial Government debt service costs are in Canadian
dollars. As such, Huckleberry has entered into foreign exchange contracts from
1998 involving the sale of U.S. $30 million at an exchange rate of U.S.
$1.4073. These forward sales will be settled at the rate of U.S. $2.5 million
per month.
Huckleberry also has in place a copper hedging program covering 60% of
1998's forecast production that is effective from February 1998 to January
1999 as follows:
Forward Sales Total Per Month
------------- ------ ---------
U.S. $0.92/lb 11,904,000 lbs 992,000 lbs
U.S. $0.95/lb 35,714,400 lbs 2,976,200 lbs
Calls Purchased
---------------
U.S. $0.98/lb 11,904,000 lbs 992,000 lbs
Bill Myckatyn, President and Chief Executive Officer of Princeton, stated
''Huckleberry is on track and generating revenue. The copper and dollar
hedging in place will provide security for Huckleberry through this period of
low copper prices. Molybdenum production will further enhance cash flow.''
On Friday, December 12, 1997 Princeton introduced its web site to the
internet. The site includes: current information on projects, press releases,
background of senior management, recently published articles on the Company,
stock and financial information. We welcome visitors to our site at
www.princetonmining.com.
%SEDAR: 00002475E
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For further information: Susanne Gallant, Investor Relations Officer, (604) 688-2511
or Fax: (604) 688-4772, Internet Address: www.princetonmining.com |
