Quadra Mining Improves Robinson Mine Plan
VANCOUVER, BC - Quadra Mining Ltd. reported a revised mine plan and increased 2009 copper production guidance for its 100% owned Robinson Mine ("Robinson") in Ely, Nevada. The Company's guidance for its Carlota mine remains unchanged.
The Company has continued to evaluate alternate mine plans for Robinson that will allow for continuity of operations through the current global economic downturn and beyond. As a result, management has developed, and is proceeding with a new mine plan that is expected to result in significant cost savings and increased copper production in 2009 and 2010. The new plan requires a copper price in the range of $1.50/lb to cover operating and capital costs, maintain an appropriate minimum cash balance and facilitate continuous production at Robinson going forward.
The new plan alters the sequencing with mining now transitioning from the existing Veteran pit to a small satellite pit ("Kimbley Wedge") in 2010 and then to Ruth at the end of 2010. The Ruth pit will be mined in two stages, in a way that defers dewatering as well as delivering the blending balance required for optimum metallurgical results. This plan was developed based on additional information acquired from recent hydrological drilling and piezometer testing which now suggests lower dewatering requirements at Ruth. The completion of the drilling and metallurgical program that commenced in 2007 supports the new plan, providing the appropriate ore sequencing for a blending strategy.
The previously announced Veteran extension which adds two years of additional reserves, will now be deferred until after the ultimate Ruth pit has been completed. This deferral significantly reduces stripping requirements in each of 2009 through 2011 together with the associated operating costs. Capital expenditures are also expected to be lower in 2009 due to lower dewatering requirements and reduced equipment purchase commitments. Cost assumptions are based on the current environment for input costs. The previously stated production guidance for Carlota remains unchanged at 50 million lbs of cathode for 2009.
The new plan is also expected to increase production of copper in 2010 to 140 - 150 million pounds and gold production to 100-110 thousand ounces. Capital expenditures in 2010 are forecasted to decrease to approximately $30 million.
The companyÕs address is Suite 2414, Four Bentall Centre, 1055 Dunsmuir Street, P.O. Box 49185, Vancouver, BC V7X 1K8, 604-689-8550, fax: 604-689-8556.