Quadra Announces First Quarter 2010 Production Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/20/10 -- Quadra Mining Ltd. ('Quadra' or 'the Company') (TSX: QUA) is pleased to announce the 2010 first quarter production results from its three wholly owned mines, the Robinson Mine ('Robinson') located in Ely, Nevada, the Carlota Mine ('Carlota') located in Globe-Miami, Arizona and the Franke Mine ('Franke') located in Region II Chile. Combined production was 49.1 million pounds of copper and 26,846 ounces of gold produced for the three months ended March 31st, 2010.
Robinson
In the first quarter of 2010, Robinson produced 32.0 million pounds of copper and 26,846 ounces of gold. Mining continued in both the Veteran Pit and Ruth Pit areas and due to the complex nature of the Robinson ore body, metal production varies from quarter to quarter. Additional flotation capacity, which was installed in the fourth quarter of 2009, has mitigated some of the metallurgical challenges associated with the deposit, as have contracts that were negotiated with concentrate customers to give Robinson more flexibility with respect to concentrate grade.
Key operating and sales metrics are shown below:
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Robinson Operation Q2 2009 Q3 2009 Q4 2009 Q1 2010 LTM(i)
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Operating Metrics:
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Copper production (Million
lbs) 22.9 33.6 29.3 32.0 117.8
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Gold production (ozs) 18,031 21,142 25,148 26,846 91,167
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Waste mined (Tonnes 000's) 11,606 12,138 13,893 9,759 47,396
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Ore milled (Tonnes 000's) 3,165 3,555 3,422 3,302 13,444
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Copper grade (%) 0.58 0.75 0.59 0.61 0.63
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Gold grade (g/t) 0.25 0.26 0.31 0.32 0.29
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Copper recovery (%) 56.3 57.4 65.9 72.2 62.6
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Gold recovery (%) 70.4 71.4 73.1 78.1 73.8
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Sales Metrics:
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Copper sales (Million lbs) 24.2 21.1 31.7 27.8 104.8
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Copper price at end of
period ($US/lb)(2) $ 2.32 $ 2.79 $ 3.34 $ 3.56 $ 3.56
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Provisionally priced
copper(1)- beginning of
period (Million lbs) 27.7 18.6 16.6 20.0 27.7
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Average settlement price
for prior period sales
subject to final pricing
during period ($US/lb) $ 2.14 $ 2.42 $ 3.02 $ 3.37 $ 2.20
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Gold sales (ozs) 23,152 18,268 24,057 23,928 89,405
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Average gold price during
period ($US/oz)(3) $ 922 $ 966 $ 1,102 $ 1,114 $ 1,025
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(i) Last Twelve Months
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
Carlota
Carlota produced 8.2 million pounds of copper during the first quarter. Rainfall events in January upset the solution chemistry of the heap leach, and impacted the mine plan, particularly with respect to access to ore (See Press Release: February 2, 2010). As a result, first quarter copper production was lower than forecast. Ore deliveries resumed from the pit to the leach pad late in March upon completion of a secondary access into a new area of the ore body. Process operations continue with efforts to rebuild solution strength and deal with the high water levels within the leach pad. Assuming precipitation returns to normal levels, it is expected that copper production will slowly return to planned levels during Q2, and that increased ore grades delivered during the second half of the year will allow copper production to increase in the second half of 2010.
Key operating and sales metrics are shown below.
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Carlota Operation Q2 2009 Q3 2009 Q4 2009 Q1 2010 LTM(i)
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Operating Metrics:
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Copper production
(Million lbs) 6.8 6.6 8.0 8.2 29.6
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Waste mined (Tonnes
000's) 4,997 4,689 3,692 5,023 18,401
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Ore placed (Tonnes 000's) 1,325 1,427 2,619 989 6,360
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Copper grade (%) 0.29 0.35 0.37 0.20 0.32
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Sales Metrics:
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Copper cathode sales
(Million lbs) 7.5 6.5 6.4 9.5 29.9
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Average realized price
for the
period(1)($US/lb) $ 2.10 $ 2.63 $ 3.01 $ 3.25 $ 2.78
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(i) Last Twelve Months
Note:
(1) Represents total revenues from sales of copper cathode divided by
pounds sold.
Franke
Franke produced a total of 8.9 million pounds of copper cathode in the quarter. As with all heap leach operations, it will take time to obtain sufficient information to fully evaluate resource and reserve performance and leach pad performance in terms of recovery and acid consumption. Analysis of cells already leached shows decreasing recovery with depth resulting in overall recovery being less than expected. Recoveries at the top of the leached cells are consistent with expectations. Changes are being made to the leach pad height, solutions flows, acid addition procedures and the leach pad area in order to improve overall recovery. In addition, leach pad recovery from some of the early leached cells indicates that processing of stockpiled material from historical mining operations may have negatively impacted copper recovery; this material is not expected to be a significant issue going forward.
Earthquakes in Chile during the quarter did not damage any facilities at Franke but the power outages interrupted production and damaged some onsite electrical equipment. These interruptions and damage have hampered the ramping up process. Repairs to the electrical system are expected to be complete by the third quarter of 2010. The reliability of pad loading systems, development of additional pad space and additional dust control in the crushing plant, are being proactively addressed to improve future performance.
Key operating and sales metrics are shown below.
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Franke Operation Q3 2009 Q4 2009 Q1 2010
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Operating Metrics:
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Copper produced (Million lbs) 4.1 9.4 8.9
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Waste mined (Tonnes 000's) 1,528 621 1,087
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Ore placed (Tonnes 000's) 552 826 761
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Copper grade (%) 0.80 0.85 0.91
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Sales Metrics:
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Copper cathode sales (Million lbs) - 6.9 10.3
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Average realized price for the
period(1)($US/lb) - $ 3.03 $ 3.25
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Note:
(1) Represents total revenues from sales of copper cathode divided by
pounds sold.
Paul Blythe, President & CEO comments, 'Robinson performed as planned during the first quarter as we continued to transition from Veteran to the Ruth Pit. Weather events at Carlota combined with start-up related equipment and leach recovery issues at Franke, challenged site personnel during the first quarter. We have made significant progress in dealing with the water situation at Carlota, following the one in 300 year storm event in January, as well as in planning to prepare ourselves better for similar events in the future. The start-up at Franke is still a work in progress, with the focus on adjusting leach conditions to bring recovery results in line with previous and current column testwork, and on improving stacking equipment performance. We are revising the mine plans at both Carlota and Franke with a view to addressing these issues as fast as possible.'
'During the first quarter, we entered into a non-binding memorandum of understanding with State Grid International Development Limited, a wholly-owned subsidiary of State Grid Corporation of China, the largest Chinese utility company and a major end user of copper, for the formation of a strategic joint venture. Quadra will contribute the Sierra Gorda project and the Franke Mine, representing $900 million in assets, and State Grid will contribute capital to each gain a 50% equity interest. We continue to work on the definitive agreement and expect this to be finalized late in the second quarter of 2010. The shareholder vote for the proposed merger of equals with FNX Mining, announced on March 23rd, 2010 is expected to be held on May 19th, 2010. This transformative transaction will result in the establishment of a new, mid-cap mining company with five existing mining operations in low political risk jurisdictions and a company that has the full spectrum of skill sets required to provide further growth, both organically within the Sudbury basin and at Sierra Gorda, and through further consolidation.'
The 2010 first quarter financial results will be announced prior to market open on Thursday, May 13th, 2010. Dial in details of the accompanying conference call will be issued under separate release.
About Quadra Mining Ltd. (TSX: QUA)
Quadra is a British Columbia corporation based in Vancouver and is a mining company whose principal assets are the Robinson Mine in Nevada, producing copper and gold, the Carlota Mine in Arizona, producing copper cathode, the Franke Mine in northern Chile, producing copper cathode, the Sierra Gorda advanced exploration copper-molybdenum project in Chile and the Malmbjerg molybdenum development project in Greenland. The Company has the goal of becoming a mid-tier base metals development and operating company with interests in a number of advanced exploration, development and producing properties.
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, projections, mine operations, future recovery levels and future production levels. 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 and is developed based on assumptions about such risks, uncertainties and other factors.
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. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of Quadra's mining operations, no material adverse change in the market price of commodities, that the mining operations will operate in accordance with Quadra's public statements and achieve its stated production outcomes, and such other assumptions and factors as set out herein. Although Quadra has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. 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:
Quadra Mining Ltd.
Sophie Taylor
Manager, Investor Relations
(604) 689-8550, ext. 310
Quadra Mining Ltd.
Paul Blythe
President & CEO
(705) 444-1316www.quadramining.com