Silvermet Starts Production
Mon May 4, 3:50 PM
ca.news.finance.yahoo.com
TORONTO, ONTARIO--(Marketwire - May 4, 2009) - THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Silvermet Inc. ("Silvermet" or the "Company") (TSX VENTURE: SYI.V) is pleased to announce that it has started production at its Waelz kiln facility located in Iskenderun, Turkey. The assets were acquired on February 16, 2009 and Silvermet has spent the subsequent period testing the equipment and making a number of significant improvements. Operations were ramped up over the past week and are currently being held at a stabilized processing level of 60,000 tonnes per annum of electric arc furnace dust ("EAFD"). Once further experience is gained at the current operating level, it is expected that throughput of EAFD will increase.
Based on current production rates, Silvermet's annual production will be a zinc clinker with contained zinc in excess of 12,000 tonnes (26.5 million pounds) and a lead oxide with contained lead in excess of 1,200 tonnes (2.6 million pounds).
Silvermet's economic modeling assumed positive cash flow would be achieved at a zinc price of $0.50 cents / pound, as was the case during the acquisition period. Since zinc and lead prices have improved from their low point, it is expected that project economics will also improve. Silvermet has committed to sales on the first 2,000 tonnes of zinc clinker, with price based on London Metals Exchange ("LME") prices during the month after shipment. First revenues are expected to be received by early June.
"This is a very exciting time for Silvermet as it transitions from being an exploration and development company to being an operating company. Silvermet's management is enthusiastic about the prospects of growth and process improvements for the Iskenderun facility and the potential to add shareholder value as the world economy recovers," said Stephen G. Roman, Silvermet's CEO.
Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raised additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Contacts
Stephen G. Roman
Silvermet Inc.
Chairman & CEO
(416) 203-8336
(416) 368-5146 (FAX)
Rein A. Lehari
Silvermet Inc.
President & COO
(416) 203-8336
(416) 368-5146 (FAX)
www.silvermet.com |
