Revett Provides Q1 2011 Operations Update
SPOKANE VALLEY, WASHINGTON -- (Marketwire) -- 05/06/11 -- Revett Minerals Inc. (TSX: RVM) (OTCBB: RVMID) today announced first quarter 2011 production from its Troy Mine in northwestern Montana of 245,068 ounces of silver and nearly 2 million pounds of copper. Production was lower and costs were higher than the same period a year ago, primarily due to transitioning much of the mining to the newly developed, higher-grade C Bed area. The 18% and 14% higher grades of silver and copper, respectively, in the C Bed area are the basis of Revett's guidance for 2011 annual silver production of 1.3 million ounces, up from 1 million ounces of silver produced in 2010.
John Shanahan, President and Chief Executive Officer, said 'We have seen continued improvements in ore production in the first quarter during this transition period, and now that the C Bed development is completed, we are poised for further improvements in the second quarter of 2011. Already in April, we have seen the average mill throughput increase to 3,700 short tons per day (stpd), up from January's average of 3,114 stpd. Our goal is to average 4,000 stpd for the year. That production level combined with the higher ore grades from the C Bed are the drivers for our increased silver production guidance for this year. We also remain focused on our exploration and engineering efforts to add value, expand the mine life and realize the longer term potential of the Troy Mine.'
Highlights:
-- The C Bed development, including the installation of a ventilation and
secondary escape-way raise was completed by quarter's end. Ore
production and metal grades from the C Bed area are on track with
estimates.
-- Net cash(1) provided from operations before capital expenditures for the
first quarter of 2011 equaled net cash from the same period a year ago,
at US$ 3.2 million, with higher metals prices offsetting the lower
production and higher costs caused by C Bed development and ramp up
activities.
-- Mill feed for the three months ended March 31, 2011 compared to the
first quarter of 2010 was lower at 3,277 stpd, with higher metal grades
of 1.02 ounces per ton (opt) silver (Ag) and 0.44% copper (Cu), versus
2010 first quarter throughput at 4,265 stpd with metal grades of 0.86
opt Ag and 0.38% Cu.
-- Cash costs (2) for the first quarter of 2011, calculated on a net of by-
product basis, was $11.99 per ounce silver and $2.05 per pound copper.
-- Exploration efforts continued in and around the Troy Mine with anomalous
copper and silver mineralization intersected during core-hole drilling
in the I Beds beneath the North Ore Body.
1st 1st
Quarter Quarter
Troy Production Summary(3) January February March 2011 2010
Mill Production
---------------------------
Mill Feed (st) 93,428 91,762 106,500 291,690 379,592
Mill Feed Rate (stpd) 3,114 3,277 3,435 3,277 4,265
Silver
---------------------------
Feed Grade - opt 1.03 0.97 1.06 1.02 0.86
Mill Recovery 81.75% 82.63% 82.12% 82.15% 87.49%
Recovered Ounces 78,579 73,867 92,622 245,068 287,259
Copper
---------------------------
Feed Grade - % 0.48% 0.40% 0.44% 0.44% 0.38%
Mill Recovery 76.80% 78.35% 78.31% 77.79% 85.05%
Recovered Pounds 684,070 575,287 739,053 1,998,410 2,456,190
Cash Cost(2)
---------------------------
Direct Operating Cost Per
Ton (US$) $33.18 $31.61 $34.66 $33.23 $22.99
By-Product Basis
(payable)
- Silver (US$/oz) $9.09 $6.53 $18.81 $11.99 $5.39
- Copper (US$/lb) $1.99 $1.53 $2.51 $2.05 $1.83
Co-Product Basis
(payable)
- Silver (US$/oz) $18.08 $19.42 $20.64 $19.37 $12.38
- Copper (US$/lb) $2.71 $2.84 $2.71 $2.76 $2.30
1. Net cash before capital expenditures is a non GAAP measure. The Company
believes that net cash provided from operations is a benchmark for
performance and is well understood and widely reported in the mining
industry.
2. All cash costs include direct mine site costs and smelting, refining and
transport costs. Average commodity prices used to off-set (by-product
credit basis) or allocate (co-product basis) cash costs are the monthly
weighted average realized prices based on invoiced shipments. Cash costs
per payable ounce of silver or payable pound of copper is a non GAAP
measure. The Company believes that, in addition to cost of sales, cash
costs per ounce and per pound are a useful and complementary benchmark
for performance and is well understood and widely reported in the mining
industry. However, cash costs per ounce does not have a standardized
meaning prescribed by Canadian GAAP. Investors are cautioned that cash
costs per ounce or per pound should not be construed as an alternative to
cost of sales determined in accordance with Canadian GAAP as an indicator
of performance. The Company's method of calculating cash costs per ounce
or per pound may differ from the methods used by other entities and,
accordingly, the Company's cash costs per ounce or per pound may not be
comparable to similarly titled measures used by other entities.
3. Production statistics are on a 100% basis.
In addition to the ramp up of mining in the C Bed area, ore production during the first quarter was impacted by ongoing development work in the East Ore Body, including pressure grouting to allow access through a fault zone. Another factor contributing to decreased production was lower ore recoveries in the first quarter of 2011. Metallurgical test work is ongoing to determine the cause and adjust the mill recovery process.
Troy Development Update:
Drilling continued targeting expansion of the I Bed mineralization in the North Ore Body area with anomalous bornite mineralization containing silver and copper encountered in recent drilling. Follow up drilling will continue in the North Ore Body area to further define this I Bed target. As was announced in a news release issued on February 8th, 2011, prior drilling in the South Ore Body area defined more than 4 million mineable tons containing over 4 million ounces of silver and 21 million pounds of copper.
Adding to the Troy Mine long-term exploration pipeline are targets outside the current mine footprint. An independent review of prior geophysical survey work was completed during the first quarter, with several targets identified around the Troy Mine. Additional geophysical work is planned for completion this summer.
Release of Quarterly Financial Results and Conference Call
Revett plans to release full financial results for the first quarter on Thursday, May 12, 2011 and hold its quarterly conference call on Tuesday, May 17, 2011 at 11:00 a.m. Eastern Time. To join the conference call dial 1-877-974-0445 or (416) 644-3425 internationally.
About Revett
Revett Minerals, through its subsidiaries, owns and operates the Troy Mine and development-stage Rock Creek Project, both located in northwestern Montana, USA. These projects host significant copper and silver mineral reserves and resources and form the basis of our plan to become a solid mid-tier base and precious metals producer. Revett plans on expanding production through exploration in and around its current properties, as well as through targeted business combinations of advanced stage projects.
John Shanahan, CEO & President
Except for the statements of historical fact contained herein, the information presented in this press release may contain 'forward-looking statements' within the meaning of applicable Canadian securities legislation and The Private Securities Litigation Reform Act of 1995. Generally, these forward looking statements can be identified by the use of forward-looking terminology such as 'expects', or 'does not expect', 'is expected', 'is not expected', 'budget', 'plans', 'schedule', 'estimates', 'forecasts', 'intends', 'anticipates', 'or does not anticipate' or 'believes' or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will', 'occur' or 'be achieved'. Forward-looking statements contained in this press release include but are not limited to statements with respect to, anticipated grades and production at the Troy Mine, extending the life of mine at Troy Mine and anticipated production of the C-bed. Actual results and developments could be affected by development risks and production risks, , as well as those factors discussed in the section entitled 'Risk Factors' in the Form 10-K filed on SEDAR at www.sedar.com and with the SEC on EDGAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Revett Minerals does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
Contacts:
Revett Minerals Inc.
Monique Hayes
Corporate Secretary/Director Investor Relations
(509) 921-2294
Revett Minerals Inc.
Ken Eickerman
CFO
(509) 921-2294
www.revettminerals.com