Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

January 15, 2010 08:00 ET

Red Back Production to Grow to 500,000 oz in 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 15, 2010) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to provide final 2009 production figures and 2010 guidance.

The Company achieved record production of 111,193 oz in the fourth quarter of 2009 resulting in full year production of 342,085 oz, a 31% increase over 2008 production. Cash operating costs for the financial year are being finalized but are expected to be in line with forecast.

Following the completion of major plant expansions at both Chirano and Tasiast, production at both projects ramped up during the fourth quarter towards projected levels for 2010. Details are set out in the table below:

  Oct 2009 (oz) Nov 2009 (oz) Dec 2009 (oz) Q409 (oz) FY09 (oz)
Tasiast 14,433 18,335 21,750 56,672 158,660
Chirano 20,200 17,449 19,023 54,518 183,425
Total 34,633 35,784 40,773 111,190 342,085

For 2010, the Company is forecasting total gold production in the range of 485,000 to 525,000 oz at a cash operating cost of between $390 and $420 per oz. This is a 46% increase over 2009 production levels.

Tasiast is projected to produce 245,000 to 265,000 oz at a cash operating cost of between $325 and $350 per oz. Capital expenditures at Tasiast are budgeted at $48 million, excluding exploration. Exploration is budgeted at $22 million for the first six months of 2010.

Chirano is projected to produce 240,000 to 260,000 oz at a cash operating cost of between $460 and $490 per oz. Capital expenditures at Chirano are budgeted at $77 million, excluding exploration. Exploration is budgeted at $6 million for the first six months of 2010.

Commenting on 2009 results and 2010 forecasts, Richard Clark, President and CEO of the Company stated:

"We are extremely pleased with our achievements in 2009 with both CIL plants having been expanded and the Akwaaba Deeps underground mine at Chirano and the dump leach operation at Tasiast being successfully commissioned. 2010 production is now running at projected levels. This will be another exciting year for Red Back with the size of the Greenschist zone at Tasiast increasing rapidly and commencement of development of the Paboase South underground mine at Chirano. The impressive growth in resources and reserves anticipated at both mines this year will confirm the longevity of our operations at higher production rates.

2010 represents the first significant production increase for the Company following completion of the plant expansions. The addition of heap leach production from Tasiast and development of the new Paboase South underground mine at Chirano will result in further production increases for 2011, towards an annual target of approximately 800,000 oz in 2012."

2009 Financial Results

The Company will be reporting its 2009 audited financial results before market open on February 26, 2010. A conference call to discuss the results will be held at 11:00 a.m. Eastern Standard Time on February 26, 2010. To participate in the call, please dial in 10 minutes before the conference starts and stay on the line (an operator will be available to assist you).

Dial-in Numbers: Ph. 416-644-3414 or Toll Free 1-800-814-4859 Conference ID: Red Back Mining

A replay of the conference call will be available from approximately two hours after completion of the live call until midnight on March 5, 2010 : Replay Numbers: Ph. 416-640-1917 or Toll-Free 1-877-289-8525 Passcode: 4174605#

About Red Back

Red Back is an unhedged African focused gold producer. It owns and operates the Chirano Gold Mine in Ghana and the Tasiast Gold Mine in Mauritania. Major plant expansions at both Chirano and Tasiast are complete, and both projects are operating at nameplate capacity. Aggressive exploration programs aimed at increasing the Company's resource and reserve base at both Chirano and Tasiast are ongoing.

FORWARD-LOOKING INFORMATION

This press release contains "forward-looking information" that is based on Red Back's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Red Back's plans, outlook and business strategy. The words "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "intend", "estimate", "plan", "forecast", "project", and "believe" or other similar words and phrases are intended to identify forward-looking information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Red Back's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for Red Back's mineral products or increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters.

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. Red Back disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

On behalf of the Board of Directors,

Richard P. Clark, President

Contact Information

  • Red Back Mining Inc.
    Simon Jackson
    Vice President, Corporate Development
    604-689-7842
    or
    Red Back Mining Inc.
    Sophia Shane
    Investor Relations
    604-689-7842
    604-689-5452 (FAX)
    www.redbackmining.com