Eastplats Reports Operating Results for the Quarter Ended September 30, 2009
Wed Oct 7, 8:40 AM
ca.news.finance.yahoo.com
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2009) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited (TSX: ELR.TO)(AIM: ELR)(JSE: EPS) ("Eastplats") is pleased to report on production from the Crocodile River Mine ("CRM") for the quarter ended September 30, 2009 ("Q3 2009").
As a result of the termination of contract mining companies whose employees were involved in the illegal strike action at CRM in July, and the subsequent direct employment of mine workers and reinstatement of a limited number of contract employees, production in the third quarter was 29,874 PGM ounces, a decrease of 10% compared to the quarter ended June 30, 2009 and a decrease of 3% compared to the third quarter of 2008. Cash costs per ounce are expected to be higher compared to the June quarter as a result of the decrease in production.
Despite the challenge of introducing new crews to the mine this quarter, a milestone of two million fatality-free shifts was achieved at CRM in September.
In Q3 2009, an agreement was also reached on wages, in which employees received a 10% increase, in line with other agreements reached in the industry.
Production statistics for the current quarter and historical quarters are as follows:
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Increase
Quarter ended (decrease)
------------------------------------------- ------------------
Q3 2009 Q3 2009
Production Sept 30, June 30, Mar 31, Dec 31, Sept 30, vs vs
statistics 2009 2009 2009 2008 2008 Q2 2009 Q3 2008
------------------------------------------------------- ------------------
Ounces 29,874 33,383 32,969 29,015 30,755 (3,509) (881)
produced
------------------------------------------------------- ------------------
Run-of-mine 244,959 342,368 321,165 280,933 319,462 (97,409) (74,503)
rock tonnes
hoisted
------------------------------------------------------- ------------------
Run-of-mine 280,777 304,354 318,394 298,514 305,490 (23,577) (24,713)
rock tonnes
processed
------------------------------------------------------- ------------------
Development 2,882 4,326 4,573 4,604 5,599 (1,444) (2,717)
(meters)
------------------------------------------------------- ------------------
On-reef 1,562 2,860 2,745 2,922 3,556 (1,298) (1,994)
development
(meters)
------------------------------------------------------- ------------------
Stoping 36,263 51,342 45,098 46,459 39,652 (15,079) (3,389)
units
(square
meters)
------------------------------------------------------- ------------------
Head grade 4.1 4.2 4.0 4.0 4.0 (0.1) 0.1
(grams/
tonne)
------------------------------------------------------- ------------------
Concentrator 78% 80% 80% 76% 78% -2% 0%
recovery
from ROM ore
------------------------------------------------------- ------------------
Chrome 83,930 82,760 77,554 69,937 64,744 1,170 19,186
produced
(tonnes)
------------------------------------------------------- ------------------
During the quarter, stoping and development output was significantly reduced. By September, production levels had returned to those achieved in June 2009. Going forward, development will be maintained at Q2 levels in order to sustain the eighteen month mining reserve that has been built up at the mine over the past two years.
Concentrator recovery from the ROM circuit decreased to 78% during the quarter mainly as a result of sub-optimal operation during times of low feed from underground. This is expected to return to 80% as mining rates ramp back to pre-strike levels.
This quarter also marked the first full quarter of production from the tailings remining section which extracts PGMs and chromite from previously placed tailings.
"After a disruptive period in July and early August at CRM, we have recovered extremely well, the extensive on and off reef development carried out during the last year having positioned the mine well for both the short term production ramp up back to Q2 levels, and for the ongoing production build up at the mine," stated Ian Rozier.
Third quarter financial results and conference call
Eastplats is scheduled to release its full third quarter results on Thursday November 12, 2009 and host a telephone conference call on the same day at 11:00 a.m. Pacific (2:00 p.m. Eastern) to discuss these results. The conference call may be accessed by dialing 1-800-319-4610 in Canada and the United States, or 1-604-638-5340 internationally.
The November 12, 2009 conference call will be archived for later playback until Thursday November 19, 2009 and can be accessed by dialing 604-638-9010 or 1-800-319-6413 and using the pass code 4219 followed by the number sign.
The qualified person having reviewed the operating results presented in this press release is Mr. Brian Montpellier, V.P. Project Development, P. Eng.
Total shares issued and outstanding: 680,562,080
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements are based on certain assumptions by Eastplats and as such are not a guarantee of future performance. Actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, increased costs of production and a decline in metal prices. Eastplats is under no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Contacts
Investor Relations
Eastern Platinum Limited
1-(604)-685-6851
1-(604)-685-6493 (FAX)
info@eastplats.com
www.eastplats.com |
