Quadra Mining Ltd.

Quadra Mining Ltd.

January 15, 2007 09:00 ET

Quadra Announces Higher Than Expected 4th Quarter 2006 and Year End Production Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 15, 2007) - Quadra Mining Ltd. ("Quadra or Company") (TSX:QUA) is pleased to announce the 2006 fourth quarter and annual production results from its 100% owned Robinson Mine located in Ely, Nevada. Key operating metrics are shown below:

Q1 Q2 Q3 Q4 Total
Waste mined (Tonnes 000's) 14,218 16,605 14,425 13,964 59,212
Ore mined (Tonnes 000's) 3,711 3,274 44,17 4,121 15,281
Ore milled (Tonnes 000's) 3,093 3,422 3,426 3,919 13,860
Copper grade (%) 0.53 0.52 0.69 0.67 0.61
Gold grade (g/t) 0.27 0.24 0.32 0.41 0.31
Copper Recovery (%) 69.5 70.3 63.4 61.0 65.4
Gold Recovery (%) 54.5 47.5 57.9 53.7 53.6
Copper produced (Million lbs) 25.0 27.8 33.3 35.3 121.4
Gold Produced (oz) 14,471 12,532 20,425 27,646 75,074

In the fourth quarter 2006 copper production was 35.3 million pounds and gold production was 27,646 ounces. Production for the year totalled 121.4 million pounds of copper and 75,074 ounces of gold. This exceeds Quadra's revised 2006 copper production guidance of approximately 115 million pounds announced on October 23rd 2006 and unchanged gold production guidance of 55,000 to 60,000 ounces.

Paul Blythe, President of Quadra, said, "We made significant progress during the quarter in getting on top of the metallurgical issues confronting us and were able to deliver our best quarter of 2006, as well as exceeding our revised annual guidance. We are now out of the supergene zone that contained the non-acid soluble copper that impacted on our recovery. Over the last two weeks of 2006 as we began mining the lower benches, we saw recoveries return to more normal levels of approximately 80%. Gold grade and recoveries continued to exceed expectations so that the overall production for the year was similar to that of 2005."

In 2007 copper production is expected to be approximately 125 million pounds and gold production is expected to be 60,000 ounces. The Company is not issuing molybdenum production guidance.

About Quadra Mining Ltd. (TSX:QUA)

Quadra is a British Columbia corporation based in Vancouver and is a copper producing company whose principal asset is the Robinson Mine in Nevada. The Company has a goal of becoming a mid-tier base metals development and operating company with interests in a number of advanced exploration, development and producing properties.

This Press Release contains "forward-looking information" that is based on Quadra's expectations, estimates and projections as of the dates as of which those statements were made. This forward-looking information consists of the estimated production for 2007. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Quadra's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to:

- Uncertainties related to the accuracy of our reserve and resource estimates and our estimates of future production and future cash and total costs of production and the geotechnical or hydrogeological nature of ore deposits, diminishing quantities or grades of reserves and variable metallurgical performance of these reserves.

- Uncertainties related to expected production rates, timing of production and the cash and total costs of production and milling.

- Uncertainties relating to copper, gold, molybdenum and other mineral prices, which are beyond the Company's control.

- Operating and technical difficulties in connection with mining development or production activities.

- Uncertainties with respect to the quantity or quality of molybdenum that may be produced at the Robinson Mine.

- Changes in, and the effects of, the laws, regulations and government policies affecting our mining operations, particularly laws, regulations and policies relating to:

- mine expansions, environmental protection and associated compliance costs arising from exploration, mine development, mine operations, reclamation and mine closures;

- expected effective future tax rates in jurisdictions in which our operations are located;

- the protection of the health and safety of mine workers; and

- mineral rights ownership in countries where our mineral deposits are located.

- Changes in general economic conditions, the financial markets and in the demand and market price for copper, gold, molybdenum and other minerals and commodities, such as diesel fuel, petroleum, steel, concrete, electricity and other forms of energy, mining equipment, operating supplies, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar and Canadian dollar, concentrate and transportation charges.

- The effects of forward selling instruments to protect against fluctuations in copper, gold, molybdenum and other metal prices and exchange rate movements and the risks of counterparty defaults, and mark to market risk.

- Unusual or unexpected formations, seismic activity, cave-ins, flooding, pressures, pit wall failures and other similar incidents (and the risk of inadequate insurance or inability to obtain insurance to cover these risks).

- Labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate mines, or extreme weather conditions, environmental hazards, industrial accidents or other events or occurrences, including third party interference that interrupt the production of minerals in our mines.

A discussion of these and other factors that may affect Quadra's actual results, performance, achievements or financial position is contained in the filings by Quadra with the Canadian provincial securities regulatory authorities, including Quadra's AIF. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Quadra 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.

Contact Information

  • Quadra Mining Ltd.
    Sophie Taylor
    Manager, Investor Relations
    (604) 689-8550
    Quadra Mining Ltd.
    Paul Blythe
    (705) 444-1316
    Website: www.quadramining.com