Quadra FNX Announces First Quarter 2011 Production Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/19/11 -- Quadra FNX Mining Ltd. ('Quadra FNX' or the 'Company') (TSX: QUX) announces its first quarter 2011 production and sales results. Combined production for the three months ended March 31st totaled 46 million pounds of payable copper, 26 thousand ounces of total precious metals ('TPMs') and two million pounds of payable nickel.
Production Sales
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Q2 Q3 Q4 Q1 Q1
2010 2010 2010 2011 2011
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Copper (Million lbs)
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Robinson (1) 23 25 25 20 18
Carlota (2) 7 7 7 4 4
Franke (2) 10 10 8 7 7
Podolsky (3) 9 5 8 5 5
Morrison (3) 4 6 7 9 9
McCreedy West (3) 1 1 1 1 1
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Total 54 54 56 46 44
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Copper price at beginning of Period (US$/lb) (4) $4.40
Copper price at end of Period (US$/lb)(4) $4.27
TPM (k ozs)
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Robinson (1) 15 15 15 6 10
Podolsky (3) 12 5 11 7 7
Morrison (3) 2 3 4 6 6
McCreedy West (3) 8 8 8 7 7
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Total 37 31 38 26 30
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Total Nickel (Million lbs) (3) 2 2 2 2 2
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1. Payable Cu produced in concentrate
2. Produced Cu in cathode
3. Shipped payable metal
4. The average price used to value provisionally priced copper
Note: The table above includes the period prior to the merger of Quadra
Mining Ltd. and FNX Mining Company Inc. to form Quadra FNX Mining Ltd. on
May 20, 2010. The table also includes pre-production ore from the Morrison
Deposit.
FIRST QUARTER OVERVIEW:
Production at Robinson continued to be limited by the lack of flexibility in the Ruth Pit. A secondary access ramp is being constructed, which together with the expected completion of the mud removal from the bottom of the pit by June, will significantly improve flexibility for the balance of the year. As previously indicated, 2011 production from Robinson is expected to be back end weighted. An aggressive exploration program has commenced in the Liberty Pit focusing in the near term on the potential for short term reserves that could further improve operational flexibility, and beyond this on increasing the overall reserves and mine life.
Copper production from the Sudbury operations was slightly better than plan, with production at Morrison continuing to ramp up as scheduled. Nickel production at Morrison was higher than expected as a result of a larger amount of ore being sourced from higher levels of the Morrison Deposit (i.e., MD1 and MD2).
At Carlota, the Company initiated the transition from truck dumping to conveyor stacking of ore on the leach pad and preliminary percolation results are positive.
As previously announced (See Press Release February 15th, 2011), Quadra FNX took over mining operations at Franke and acquired much of the contractor's mining fleet. During the transition, ore was sourced from stockpiles but as of April, mining operations have resumed in the pit.
OTHER EVENTS:
Quadra FNX has entered into a customary voting support agreements with respect to the recently announced agreement by Capstone (TSX: CS) to acquire Far West Mining Ltd (TSX: FWM), of which Quadra FNX owns 13%, on a fully diluted basis. Should this transaction be successful, Quadra FNX would realize a pre-tax gain of approximately C$60 million based on current prices.
Paul Blythe, President & CEO comments; 'The underground operations continue to perform on target and progress continues to be made on the open pit mines. We continued to advance the Sierra Gorda feasibility study and partnership negotiations, which remain on track. We also completed an NI 43-101 compliant inferred resource at our Victoria project which confirmed a project of substantial size, as announced by a separate press release this morning. A conference call to discuss this event will be held later on this morning.'
Conference Call details:
A conference call to discuss the first quarter production as well as the Victoria inferred resource has been scheduled for Tuesday, April 19th 2011, at 9.00am ET (6.00am PDT). The North American toll free number for this conference call is 1-800-952-6845 while the international number is 1-416-695-6616. To access the simultaneous webcast, visit Quadra FNX's website at www.quadrafnx.com or www.InvestorCalendar.com. The playback version of the call will be available until April 26th, 2011 at 1-905-694-9451 or North American toll free1-800-408-3053 and using the pass code 5283222.
The first quarter financials will be issued on May 6th, 2011 prior to market open. Dial in details of the accompanying conference call will be issued under separate press release. The Annual General Meeting for the shareholders will be held on the same date at 11.00am ET at the Toronto Board of Trade, First Canadian Place, Suite 250, 77 Adelaide Street West, Toronto, Ontario.
About Quadra FNX Mining Ltd. (TSX: QUX)
Quadra FNX Mining Ltd. is a leading mid-tier copper mining company with corporate offices in Vancouver, B.C. and Toronto, Ontario. Quadra FNX produces copper and platinum group metals from its operating mines: Robinson in Nevada, Carlota in Arizona, Franke in northern Chile, and McCreedy West, Levack, which includes Morrison, and Podolsky in Sudbury, Ontario. The Company possesses several advanced development projects, including the Sierra Gorda copper-molybdenum project in Chile, the Malmbjerg molybdenum development project in Greenland and the Victoria project, an advanced exploration project in Sudbury. Quadra FNX employs approximately 1,900 people in North and South America.
This Press Release contains 'forward-looking information' that is based on Quadra FNX's expectations, estimates and projections as of the dates as of which those statements were made. This forward-looking information includes, among other things, statements with respect to future production at the Company's operating mines and other operations. Generally, this forward -looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'believe', 'estimate', 'expect', 'intend', 'should', 'scheduled', 'will', 'plan', 'would' and similar expressions. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Quadra FNX's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information and is developed based on assumptions about such risks, uncertainties and other factors. A discussion of these and other factors that may affect Quadra FNX's actual results, performance, achievements or financial position is contained in the filings by Quadra FNX with the Canadian provincial securities regulatory authorities, including Quadra FNX's Annual Information Form. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of Quadra FNX's mining operations, no material adverse change in the market price of commodities, that the mining operations will operate in accordance with Quadra FNX's public statements and achieve its stated production outcomes, and such other assumptions and factors as set out herein.
Although Quadra FNX has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Quadra FNX disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.
Contacts:
Media and Investor Relations Contact:
Quadra FNX Mining Ltd.
Derek White
Executive Vice President, Corporate Development
604-807-7555
Quadra FNX Mining Ltd.
Nawojka Wachowiak
Vice President, Investor Relations
416-642-9209
www.quadrafnx.com