Revett Reported Operational Guidance and Hedging for 2010
SPOKANE, WA - Revett Minerals Inc. reported that having successfully met many challenges during the past year, the company is poised to increase emphasis on its core business objectives in 2010: major focus will include the following:
Advance development stage Rock Creek project. All necessary permits for Phase One are in place and the Company is currently working with government agencies to finalize reclamation bonding. Ruling on environmental challenges is anticipated by the end of first quarter 2010. Development of the Revett Formation C beds, commencing with operations to access this new zone. The higher grade C-beds are located approximately 370 feet below current workings at the Troy Mine and production from the C-beds is expected to occur by the end of this year. Effectively and efficiently operate the producing Troy Mine in a safe and environmentally conscious manner, while improving productivity and maintaining direct operating cost reductions. Further exploration in and around the
John Shanahan, President and CEO stated, In 2009, the Company completed many of its near-term objectives by reducing direct operating costs at the producing Troy Mine, restructuring debt and streamlining the corporate structure. As a result, we enter 2010 with a stronger and clean balance sheet, a solid operating record and greater capacity to expand our development and growth efforts for both the Troy Mine and Rock Creek project.
Production at the Troy Mine is expected to be approximately 1.3 million ounces of silver and 10.7 million pounds of Copper for 2010. Based on the current mine plan, mill throughput is anticipated to exceed the 2009 estimated average of 3,745 tons per day, averaging 4,049 tons per day for 2010. Grades are also anticipated to improve slightly averaging 1.01 ounces per ton silver and 0.43% copper; compared to 1.00 ounces per ton silver & 0.39% Cu in 2009. A key objective is to maintain operating costs in a range similar to those in 2009 which were approximately 20% lower than 2008.
Revett has hedged approximately 50% of its estimated 2010 copper production in two tranches at an average of US$2.94 per pound; and, 25% of its estimated silver production at US$16.25 per ounce. This hedging ensures that approximately 75% of estimated monthly cash operating costs are covered with the Company’s hedging program. The remaining 50% of copper and 75% of silver production that has not been hedged enables the Company to capitalize on potential future metal price increases.
Revett Minerals, through its subsidiaries, owns and operates the currently producing Troy Mine and development-stage Rock Creek Project, both located in northwestern
The company’s address is 11115 East Montgomery, Suite G,