Quadra FNX Reported Record Revenue

VANCOUVER, BC - Quadra FNX Mining Ltd. reported third quarter 2010 financial and operational results. The third quarter of 2010 marked the first full quarter for the combined Quadra FNX and the strong financial performance reflects the increased production as a result of the merger, as well as the stronger copper price.
Total revenues increased 186% to $259.1 million in the quarter compared with $90.7 million in 2009. These record quarterly revenues were generated from the sale of 56.8 million pounds of copper and 33,500 ounces of total precious metals (TPM's). On September 1, 2010 the company commenced commercial production at the Morrison deposit in Sudbury, which generated operating income of $3.1 million for the month of September. The Robinson Mine generated operating income for the quarter of $46.0 million compared with $24.1 million for the same quarter in 2009, an increase of 92%. Operating income this year from Robinson totals $131.1 million. Previously identified potential problems with historical
workings at Robinson have been resolved.
The company had net earnings of $37.2 million for the three months ended September 30, 2010 compared to earnings of $14.7 million or for the three months ended September 30, 2009.
Quadra FNX ended the third quarter of 2010 with $323 million of cash on hand.
The US operations had a mixed quarter. At Robinson in Nevada, production rebounded versus the second quarter and confirmatory drilling indicates that the historic underground workings below the Ruth pit are not expected to have any further impact on the remainder of 2010 or any impact on 2011 or on the reserve base. The operations team has now completed the generation of a block model for the mine that reflects the extensive metallurgical program over the last two years, improving the ability to predict production going forward. Production at Carlota in Arizona remained largely flat and technical studies are ongoing as how to deal with the fines in the ore body, which are affecting percolation. It has now been concluded that these are not a local effect but occur throughout the ore body and planned programmes include material stacking strategies, processing options and leaching strategies. A review of the pit slope in the area of the Kelly fault has also indicated that a change in the pit wall angle may be necessary, and that increased stripping may be required. The economic and reserve implications of this potential change are currently being studied and will be published once finalized. On the positive side, the Company has developed a new ore genesis model which improves the understanding of the fines issue and supports exploration potential at depth. An initial drill program will be following this up in the fourth quarter.
The Canadian operations reached a significant milestone when commercial production was declared at Morrison on September 1, 2010. The ramp up of Morrison is on schedule and the concept of selective mining continues with a focus on ore quality versus tonnes mined. Podolsky struggled with adverse ground conditions, but production is expected to rebound in the fourth quarter as the high grade stope initially planned for the third quarter is brought into production. McCreedy West met production tonnage and copper grade goals in the third quarter and production for the year is expected to be on target. The Company continues to investigate the restart of nickel production at the Sudbury operations. Key considerations in making this decision include the processing terms from Vale, nickel prices and infrastructure capabilities.
In Chile, third quarter production at the Franke mine was similar to the second quarter as a result of variable recoveries, despite success with the changes to the leach pad height on some of the pads leached. Adjustments to the leach parameters at Franke, particularly the leach solution strategies, will continue as well as adjustments to the crush size going forward.
During the quarter, significant advancements were made on the Sierra Gorda and Victoria development projects, and it was announced that ongoing drilling at the Victoria property had expanded and added considerable confidence to Zone 4, which has now been delineated over a vertical length of over 3,000 feet, yielding grades significantly higher than are typical in the Sudbury camp. Studies are currently being initiated to support a decision on an advanced underground exploration program and work is processing on environment permitting and with First Nations negotiations.
The company's address is uite 2414, Four Bentall Centre, 1055 Dunsmuir Street, P.O. Box 49185, Vancouver, BC V7X 1K8, 604-689-8550, fax: 604-689-8556.