MEDIA RELEASE
Jack, this release looks like a very positive move IMO. What are your thoughts?
August 6, 1998...Breakwater Resources Ltd. (TSE-BWR), announced today that it will be temporarily suspending milling operations at its El Toqui Mine in southern Chile for a period of up to 3 months, effective September 7, 1998.
The temporary suspension of milling operations will allow the Company to implement plans, resulting from an in depth technical review, to increase production and reduce costs. The plans include; the continued development of the mine, upgrading and refurbishing mining equipment, changing the production and development mining methodology and improving the throughput and metallurgical performance of the processing facility. Incorporated in the changes will be a reduction of 13% of the workforce, an increase in the fine ore bin capacity, an improved mobile fleet to enhance underground development and production and improvements to the process control operating systems as well as the ship loading facility. The capital required for these projects is estimated to be US$2.6 million. In addition the Company will be renegotiating major service contracts with all suppliers during this period.
As a result of these planned changes, the company expects cash operating costs to be reduced to approximately $0.45 per pound of payable zinc. Year to-date, to July 1998, operating costs have averaged $0.55 per pound of payable zinc. El Toqui will produce approximately 34 million pounds of payable zinc in concentrate in 1998 and in 1999 it is expected to produce approximately 65 million pounds of payable zinc, 1.3 million pounds of payable lead, 2,600 ounces of payable gold and 147,000 ounces of payable silver.
This press release includes certain forward-looking statements. All statements, other than statements of historical fact included herein, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
For further information please contact:
Gordon F. Bub
Colin K. Benner
Chairman and Chief Executive Officer President and Chief Operating Officer
(416) 363-4798 Ext. 264 (416) 363-4798 Ext. 269
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