Welcome To The Quadra Mining HUB On AGORACOM
Quadra provides a strong investment vehicle to movements within the base metals sector
Message: 3Q 2009 Production Results
| October 13, 2009 | |||
| Quadra Announces Third Quarter 2009 Production Results | |||
|
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2009) - Quadra Mining Ltd. ("Quadra" or "the Company") (TSX:QUA) announces the production results for the third quarter of 2009 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 northern Chile. Combined production was 44.3 million pounds of copper and 21,142 ounces of gold produced for the three months ended September 30, 2009. Robinson Robinson produced 33.6 million pounds of copper and 21,142 ounces of gold during the third quarter of 2009. This was substantially on target, despite the mine not having full access to the Veteran pit hypogene until midway through the quarter. The hypogene ore in the Veteran pit is required for blending with the supergene ore from the Wedge pit to deliver concentrate grades and recoveries as planned. Mining of hypogene ore from the Veteran Pit resumed as expected in mid August, following implementation of additional slope monitoring and control measures as agreed with MSHA. The copper and gold production for the year is expected to be substantially in line with revised guidance of 130 million pounds of copper and 100,000 ounces of gold. Sales in the quarter were adversely affected by the need to defer one sale of concentrate because of low production in the second quarter and the stockpiling of some lower grade concentrate produced in the third quarter. This is being blended back into the system. Key operating and sales metrics are shown below: --------------------------------------------------------------------------
Robinson Operation Q4 2008 Q1 2009 Q2 2009 Q3 2009 LTM(i)
--------------------------------------------------------------------------
Operating Metrics:
--------------------------------------------------------------------------
Copper production 34.5 36.7 22.9 33.6 127.7
(Million lbs)
--------------------------------------------------------------------------
Gold production (ozs) 26,913 34,649 18,031 21,142 100,735
--------------------------------------------------------------------------
Waste mined (Tonnes 000's) 13,527 8,379 11,606 12,138 45,650
--------------------------------------------------------------------------
Ore milled (Tonnes 000's) 3,358 3,407 3,165 3,555 13,571
--------------------------------------------------------------------------
Copper grade (%) 0.69 0.65 0.58 0.75 0.67
--------------------------------------------------------------------------
Gold grade (g/t) 0.48 0.42 0.25 0.26 0.35
--------------------------------------------------------------------------
Copper recovery (%) 68.1 75.4 56.3 57.4 63.7
--------------------------------------------------------------------------
Gold recovery (%) 52.2 75.4 70.4 71.4 65.3
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Sales Metrics:
--------------------------------------------------------------------------
Copper sales (Million lbs) 29.2 34.5 24.2 21.1 109.0
--------------------------------------------------------------------------
Copper price at end of period $1.33 $1.83 $2.32 $2.79 $2.79
($US/lb)(2)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Provisionally priced 51.0 43.2 27.7 18.6 51.0
copper(1) - beginning of
period (Million lbs)
--------------------------------------------------------------------------
Average settlement price for $1.83 $1.56 $2.14 $2.42 $1.74
prior period sales subject to
final pricing during period
($US/lb)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Gold sales (ozs) 22,844 30,258 23,152 18,268 94,522
--------------------------------------------------------------------------
Average gold price during $796 $908 $922 $966 $897
period ($US/oz)(3)
--------------------------------------------------------------------------
(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 produced 6.6 million pounds of copper during the third quarter. This was expected and in line with previous quarters. Production was again below mine plan estimates in part because of lower than scheduled ore mined and in part because of lower than anticipated flow rate through pad material. Ore mined was affected by additional work required on the ultimate pit wall above the Pinto Creek Diversion, which required the reallocation of mining equipment to complete the diversion on schedule, delaying access to higher grade ore. During the quarter higher grade mixed oxide and chalcocite bearing ores at the top of the Cactus pit orebody were encountered. Weathering and alteration features of this mixed ore have continued to show slower than planned percolation rates due to fines. We believe this zone to be a feature of the top of the ore zone, as prior testwork below in the main portion of the orebody did not indicate percolation or recovery challenges. Review of existing drill logs and additional drilling are in progress to further evaluate this issue. While improving the leach solution rate remains a work in progress, copper production is expected to increase to approximately nine million pounds in the fourth quarter. Key operating and sales metrics are shown below. ------------------------------------------------------------------ Carlota Operation Q1 2009 Q2 2009 Q3 2009 YTD ------------------------------------------------------------------ Operating Metrics: ------------------------------------------------------------------ Copper production 6.6 6.8 6.6 20.0 (Million lbs) ------------------------------------------------------------------ Waste mined (Tonnes 000's) 4,518 4,997 4,689 14,204 ------------------------------------------------------------------ Ore placed (Tonnes 000's) 1,732 1,325 1,427 4,484 ------------------------------------------------------------------ Copper grade (%) 0.25 0.29 0.35 0.29 ------------------------------------------------------------------ ------------------------------------------------------------------ Sales Metrics: ------------------------------------------------------------------ Copper cathode sales 5.9 7.9 6.1 19.9 (Million lbs) ------------------------------------------------------------------ Average realized price for $1.49 $2.01 $2.55 $2.02 the period ------------------------------------------------------------------ Franke continued to ramp up with first copper harvested in July and a total of 4.1 million pounds of copper cathode produced in the quarter, virtually all of it LME grade A. While the primary crusher feeder design continues to limit production, the operating team has managed to increase throughput to the point where, with the portable crusher now on site to supplement the installed crusher, Franke should be able to approach design ore capacity during the fourth quarter of 2009. A redesign of the feed system is in progress. The pond issues are substantially resolved and are not expected to impact ramp up. Copper production in the last quarter is expected to be in the six to eight million pound range. In association with finalizing plant modifications, Franke is actively pursuing all permits required to move from construction and start-up to full commercial operating status. This process is expected to be completed by the end of 2009. Key operating metrics are shown below. First shipments to customers began in late September however no sales were recorded during the quarter. ------------------------------------------------ Franke Operation Q3 2009 YTD ------------------------------------------------ Operating Metrics: ------------------------------------------------ Copper produced (Million lbs) 4.1 4.1 ------------------------------------------------ Waste mined (Tonnes 000's) 1,528 1,528 ------------------------------------------------ Ore placed (Tonnes 000's) 552 552 ------------------------------------------------ Copper grade (%) 0.8 0.8 ------------------------------------------------ At Carlota, the diversion channel is on schedule and associated mining above the channel is complete, allowing the operation to focus on mining of ore. The impact of lowering tonnage to the pad represents approximately 70% of the production shortfall compared to our original guidance so far in 2009. The percolation of solution through the leach pads remains at about 75% of that contemplated by the feasibility study. We are still studying options with respect to blasting and pad construction, but the main driver is the fines content of the ore. As previously, we see this as a working capital issue rather than a recovery issue and are accelerating the next stage of pad construction to ensure that we have adequate pad area." Paul Blythe continues, "At Franke we remained on plan, harvesting just over 4 million pounds during the quarter. We are through most of the construction issues, other than the primary crusher feed system where we are still working on the most appropriate design. We want to get this right and decided during the quarter to bring in a portable crushing unit to provide additional capacity while we worked through the issue, which we now see as involving more than the crusher feeder. This should allow us to get close to design capacity in the interim and we can continue like this indefinitely. The other start-up issues, particularly the ponds, are resolved or will be resolved with no expected impact on production. As the mine development moves into higher grade ore and the plant throughput increases, we expect to be close to design cathode production in one or two more quarters." "During the quarter, we published the results from the Sierra Gorda scoping study which incorporated an updated technical report as well as a preliminary economic assessment. To summarize, the study supports an open pit and concentrator operation processing 111,000 tonnes of mill feed per day and producing between 250 and 400 million pounds of copper per annum over a 25 year mine life at an average cash cost of $0.79 per pound. The project would also have significant molybdenum production, averaging 33 million pounds per year over the first eight years, and declining thereafter. This high level of molybdenum production results in an average cash cost of $0.34 per pound produced during these first eight years. We are moving forward with pre feasibility and feasibility studies as well as permitting and are building up the study team. We also continued to advance our discussions with potential partners." Paul Blythe concludes, "Overall, we made progress at all three operations and are well placed for 2010, when we are expecting copper prices to improve further on the back of a global recovery." During the quarter, the company sold all marketable securities held for a modest gain. The third quarter financial results will be announced on November 12th, 2009. Dial in details of the accompanying conference call will be issued under separate release. |
Loading...
Loading...
New Message
Please
login
to post a reply