Quadra Announces 2008 4th Quarter and Record Annual Production Results From the Robinson Mine
Mon Jan 19, 9:00 AM
ca.news.finance.yahoo.com
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2009) - Quadra Mining Ltd. ("Quadra" or "the Company") (TSX: QUA.TO) is pleased to announce the 2008 fourth quarter and annual production results from its 100% owned Robinson Mine ("Robinson") located in Ely, Nevada. Key operating metrics are shown below:
--------------------------------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL TOTAL
2008 2008 2008 2008 2008 2007
--------------------------------------------------------------------------
Operating Metrics
--------------------------------------------------------------------------
Copper production (Million lbs) 42.0 44.6 38.6 34.5 159.7 131.9
--------------------------------------------------------------------------
Gold production (ozs) 37,738 42,348 30,629 26,913 137,628 108,119
--------------------------------------------------------------------------
Waste mined (Tonnes 000's) 15,532 14,462 14,263 13,527 57,784 59,296
--------------------------------------------------------------------------
Ore milled (Tonnes 000's) 3,541 3,453 3,489 3,358 13,842 14,171
--------------------------------------------------------------------------
Copper grade (%) 0.68 0.72 0.64 0.69 0.68 0.63
--------------------------------------------------------------------------
Gold grade (g/t) 0.45 0.51 0.42 0.48 0.46 0.40
--------------------------------------------------------------------------
Copper recovery (%) 78.6 81.8 78.7 68.1 76.7 67.4
--------------------------------------------------------------------------
Gold recovery (%) 72.6 75.2 65.8 52.2 66.8 59.7
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Sales Metrics:
-------------
--------------------------------------------------------------------------
Copper sales (Million lbs) 38.9 38.7 40.4 29.2 147.2 134.2
--------------------------------------------------------------------------
Copper price at end of period
($US/lb) (2) $3.82 $3.91 $2.91 $1.33 $1.33 $3.04
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Provisionally priced copper(1)
beginning of period
(Million lbs) 38.2 44.4 51.8 51.0 38.2 46.9
--------------------------------------------------------------------------
Average settlement price for
prior period sales subject to
final pricing during period
($US/lb) $3.64 $3.81 $3.44 $1.83 $3.66 $2.96
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Gold sales (ozs) 32,314 35,403 35,151 22,844 125,712 108,002
--------------------------------------------------------------------------
Average gold price during
period ($US/oz) (3) $ 925 $ 896 $ 869 $ 796 $ 872 $ 697
--------------------------------------------------------------------------
Notes:
(1) Copper that has been sold but has not been subject to final pricing.
Under current sales contracts, final pricing for copper sales is
generally set at least four months after the time of shipment
(2) The average price used to value provisionally priced copper
(3) Average daily price of the London am/pm fix
In the fourth quarter 2008 copper production was 34.5 million pounds and gold production was 26,913 ounces. Copper production for the year totalled 159.7 million pounds in line with Quadra's revised 2008 guidance of 160 million pounds. Gold production for the year totalled 137,628 ounces, exceeding Quadra's revised 2008 guidance of 130,000 ounces.
Copper and gold production at Robinson was as planned for the fourth quarter with mill feed continuing to be a mixture of hypogene and supergene ore. The strong overall production results at Robinson in 2008 are a result of higher than planned head grades as well as the operating practices and blending strategies developed during the year that delivered higher than anticipated copper and gold recoveries. Annual production performance for 2008 exceeded all production results since the mine commenced operations under the ownership of Quadra and based on records at hand, of any previous operator over the long history of the mine.
Notwithstanding the excellent production record at Robinson, the commodity price collapse resulted in a quarter end copper price of $1.32/lb., a significant drop from the price of $2.91/lb. at the start of the quarter. The associated negative provisional pricing adjustments will have an adverse effect on earnings for the quarter.
Paul Blythe, President & CEO comments, "We are very pleased with the quarterly and annual results from Robinson where we were able to build on our expertise and deliver our best annual production numbers so far. While Carlota produced its first cathode in December, there were no cathode shipments in 2008 as analyses were not completed by year end."
"As previously announced, 2009 production at Robinson is estimated at 130 million pounds of copper and 125,000 ounces of gold, almost all from hypogene ore, which has a lower head grade than the combined supergene and hypogene ore encountered this year. The copper production estimate for Carlota in 2009 is 50 million pounds, as a result of the lower head grades encountered in this first year of operations."
About Quadra Mining Ltd. (TSX: QUA.TO)
Quadra is a mining company that owns and operates the Robinson copper mine ("Robinson Mine") near Ely, Nevada and the Carlota copper mine ("Carlota"), a heap leach - SX/EW copper operation in Arizona. The Company also has a 100% interest in the Sierra Gorda project ("Sierra Gorda"), a late stage exploration property in northern Chile, and a 99% interest in the Malmbjerg molybdenum project ("Malmbjerg") in Greenland. The strategic plan of the Company includes growth by optimising operations, developing projects, and pursuing merger and acquisition opportunities.
This Press Release contains "forward-looking information" that is based on Quadra's expectations, estimates and projections as of the dates as of which those statements were made. This forward-looking information includes, among other things, statements with respect to Quadra's business strategy, plans, outlook, long-term growth in cash flow, earnings per share and shareholder value, projections, targets and expectations as to reserves, resources, results of exploration (including targets) and related expenses, property acquisitions, mine development, mine operations, mine production costs, drilling activity, sampling and other data, estimating grade levels, future recovery levels, future production levels, capital costs, costs savings, cash and total costs of production of copper, gold and other minerals, expenditures for environmental matters, projected life of Quadra's mines, reclamation and other post closure obligations and estimated future expenditures for those matters, completion dates for the various development stages of mines, availability of water for milling and mining, future copper, gold, molybdenum and other mineral prices (including the long-term estimated prices used in calculating Quadra's mineral reserves), currency exchange rates, debt reductions, timing of expected sales and final pricing of concentrate sales, the percentage of anticipated production covered by option contracts or agreements, anticipated outcome of litigation and personnel issues. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "believe", "estimate", "expect", "intend", "should", "scheduled", "will", "plan" and similar expressions. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Quadra's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to:
- Uncertainties related to the accuracy of reserve and resource estimates and estimates of future production and future cash and total costs of production and the geotechnical or hydrogeological nature of ore deposits, diminishing quantities or grades of reserves and variable metallurgical performance of these reserves.
- Uncertainties related to expected production rates, timing of production and the cash and total costs of production and milling.
- Uncertainties relating to copper, gold, molybdenum and other mineral prices, which are beyond the Company's control.
- Provisional payments on concentrate material that the Company sells; uncertainty in the final metal prices used for the computation of final settlement exists such that final settlement could be less than the cost of production plus other liquidity requirements.
- Operating and technical difficulties in connection with mining development or production activities.
- Uncertainties related to feasibility studies and other studies that provide, among other matters, estimates of expected or anticipated costs, expenditures and economic returns from a mining project.
- Uncertainties related to the completion, start-up and ongoing production at Carlota, including costs associated with the construction of the Pinto Creek Diversion.
- Uncertainties relating to the availability of adequate water resources for mining and milling operations and uncertainties related to whether the Company will be able to pump water in the expected quantities from the properties on which it holds water rights.
- Uncertainties related to the ability to obtain and retain or renew necessary licences, permits, and other government authorizations, including the necessary permits to complete the dewatering of the Ruth pit, at operating and development projects.
- Uncertainties related to the ability to obtain necessary electricity, surface rights, water rights and title for operating and development projects and project delays due to third party opposition.
- Uncertainties related to judicial or regulatory proceedings, including whether the permits required for development and operating activities will be obtained and whether existing permits will be challenged.
- Changes in, and the effects of, the laws, regulations and government policies affecting Quadra's mining operations, particularly laws, regulations and policies relating to:
-- mine expansions, environmental protection and associated compliance costs arising from exploration, mine development, mine operations, reclamation and mine closures;
-- expected effective future tax rates or royalties in jurisdictions in which Quadra's operations are located;
-- the protection of the health and safety of mine workers; and
-- mineral rights ownership in countries where Quadra's mineral deposits are located.
- Changes in general economic conditions, the financial markets and in the demand and market price for copper, gold, molybdenum and other minerals, diesel fuel, petroleum, steel, concrete, sulphuric acid, explosives, truck tires and other operating supplies, refining and treatment costs, transportation charges, electricity and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar and Canadian dollar.
- The effects of derivative instruments to protect against fluctuations in copper, gold and other metal prices, exchange rate movements, fuel price changes, and the associated mark to market risks.
- Unusual or unexpected formations, seismic activity, cave-ins, flooding, pressures, pit wall failures and other similar incidents (and the risk of inadequate insurance or inability to obtain insurance to cover these risks).
- Environmental issues and liabilities associated with mining including processing and stock piling ore.
- Labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which Quadra operates mines, or extreme weather conditions, environmental hazards, industrial accidents or other events or occurrences, including third party interference that interrupt the production of minerals in Quadra's mines or interrupt the delivery of Quadra's product to customers.
- Quadra's reliance on a single producing property and on a start-up property.
- Uncertainties related to potential future breaches of covenants and undertakings contained in agreements, by Quadra or its suppliers, that could result in a significant loss to Quadra
A discussion of these and other factors that may affect Quadra's actual results, performance, achievements or financial position is contained in the filings by Quadra with the Canadian provincial securities regulatory authorities, including Quadra's Annual Information Form. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Quadra disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.
Contacts
Sophie Taylor
Quadra Mining Ltd.
Manager, Investor Relations
(604) 689-8550
Paul Blythe
Quadra Mining Ltd.
President
(705) 444-1316
Website: www.quadramining.com |
