Mercator Advances Copper/Molybdenum Mill Expansion
Monday December 4, 8:57 am ET
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TRADING SYMBOL: TSX - ML
KINGMAN, AZ, Dec. 4 /CNW/ - Mercator Minerals Ltd. is pleased to announce that it has taken a significant step towards the development of a major copper-molybdenum processing facility at its wholly owned Mineral Park Copper Mine in Arizona that could accelerate the start of production of copper and molybdenum concentrates. After a thorough review of its options, Mercator has placed orders for two new 7500 hp ball mills for expedited delivery in early 2008. These mills are key components in the processing circuit for concentrate production and represent a major milestone in Mercator's path towards substantially increased copper production and its first production of molybdenum at Mineral Park, both in the form of concentrates.
"Not willing to let an opportunistic lawsuit unreasonably delay our development plans, we have developed an alternate approach to the Phase 4 expansion of the Mineral Park Mine that we can move forward on an expedited basis," said Mike Surratt President and CEO of Mercator. "Our original plan was to use the Tucson mill (purchased in 2005) as the first stage of the Phase 4 expansion and then purchase new equipment for the second stage. However, litigation over the purchase of the Tucson mill initiated by the vendor (which litigation Mercator believes is without merit) resulted in an uncertain expansion timetable," according to Mr. Surratt. "By purchasing new equipment for the first stage of the Phase 4 expansion, the Tucson mill has been taken off the critical path and allows us to commence development of the Phase 4 expansion without delay, and still have a completion date in the first quarter of 2008."
As a result of this decision, Mercator is now able to plan a significantly larger mill circuit than would have been possible with the Tucson mill. "The availability of significantly larger mill equipment that can meet our development schedule makes a larger mill practical," said Mr. Surratt. Mercator anticipates that the new mill will be able to process in the order of 45,000 to 50,000 tons per day, as opposed to the previously announced 37,000 tons per day operation. The Phase 4 expansion will be staged, with the newly ordered equipment taking production to 25,000 tons per day and subsequent expansions to the full production level.
Mineral Park has completed geotechnical studies for the placement of mill foundations and has scheduled excavation to begin in January 2007. Detailed engineering for the redesigned mill is well advanced and sourcing of additional critical path equipment is well underway. Mercator plans to issue an amended technical study by the end of 2006, incorporating the expanded production level, which is forecast to include an updated mine plan generating higher production of copper and molybdenum than that announced September 5, 2006. The amended study will also include updated capital and operating costs. While overall capital costs are expected to be somewhat higher than those announced in September, the higher production levels, lower operating cost and more certain start date would be significant benefits.
"Through this alternate plan, Mercator has taken back control of its own destiny," said Mr. Surratt. "We will continue to pursue our defense of the litigation over the Tucson mill and are striving for a clear win in time to utilize equipment from the Tucson mill in the second stage of the Phase 4 expansion at Mineral Park."
Jim Tompkins, P.Eng., the Company's Engineering 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 highly profitable copper producer that owns and operates the Mineral Park Copper Mine in Arizona, with a corporate strategy focused on maximizing the production potential of the Mineral Park copper-molybdenum deposit. The Company has filed a pre-feasibility 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
Source: Mercator Minerals, Ltd. |
