Iberian Minerals Corp.

Iberian Minerals Corp.

February 27, 2009 08:30 ET

Iberian Minerals Update-Condestable and Aguas Tenidas Mines

TORONTO, ONTARIO--(Marketwire - Feb. 27, 2009) - Iberian Minerals Corp. (TSX VENTURE:IZN) today issued updated information regarding operations and 2008 mine highlights for its 98.7% owned Condestable mine in Peru, and on start-up of its 100% Aguas Tenidas mine in the Andalucia region of Spain.

Condestable Mine

Operations at the Condestable Mine continue in a steady state, and on plan. After various production expansions, the operation has been optimized with low direct costs of less than US$ 20/t, mainly due to minimal ground support and no required backfilling. The mine has historically replaced reserves each year with a comprehensive underground drilling program performed by company personnel. With major capital projects completed in 2008, the plant will have greater operating reliability with a new primary crusher assisted by the new tailings thickener to recover process waters, and so less resulting dependence on fresh water wells.

The following are the highlights for the Condestable Mine for the period February 1, 2008 to December 31, 2008 (11 months):

- Revenues were approximately US$91.8 million.

- Production for 2008 was (3 months unless indicated):

February to
March 30 September December December,
Production Unit (2 months) June 30 30 31 2008
Concentrate MT 15,964 25,507 26,209 26,744 94,425
Copper MT 3,995 6,280 6,562 6,390 23,228
Fine gold Oz 2,970 4,080 4,247 4,790 16,088
Fine silver Oz 40,906 71,201 75,557 72,015 259,679

- Cash operating cost (C3) for 2008 is estimated atUS$31.64 per ton of
copper produced. This is computed using all cash costs for the Peruvian

- Recovery rate of 91%, and an average copper grade of approximately 1.24%.

The Company is very pleased to report that Condestable and its workers signed a collective labour agreement for three years on January 22, 2009.

Aguas Tenidas Mine

Iberian has received the "Autorizacion del Proyecto de Reinicio de Explotacion" permit from the Junta de Andalucia, which is the five year mine underground operating permit (including blasting) for the recovery of production ore. In addition, the Company has been advised that the Junta de Andalucia has approved a grant application relating to "Programa de Incentivos para el Fomento de la Innovacion y el Desarrollo Empresarial en Andalucia" in the total amount of 10,093,472 Euros. Payment awaits submission of final paperwork.

Iberian has also received a temporary three month permit for operation of the polymetallic circuit, such that processing of 40,000 tonnes currently on surface of development ore for the polymetallic circuit commenced on February 5, 2009. The permanent licensing process continues. The Company has applied for a permanent permit for the copper circuit, which is targeted to be completed by mid-March.

Development ore on surface for the copper circuit has been fully processed, and it is expected that additional ore will be available to process in early March. A first shipment of 23.5t of copper concentrate has left the property for shipment.

As previously reported, production began at the mine on December 22, 2008 with the start-up of the copper circuit. Commissioning of the mill continues with necessary adjustments and completion of construction work, mostly related to the paste plant.

Minas de Aguas Tenidas, S.A.U ("MATSA") currently has approximately 200 company employees and 300 contractor workers on site.

With the receipt of the operating permit, underground stope blasting work has commenced. Additional copper stockwork stopes have been scheduled for Q3 to improve the time delay on ramp up caused by the permit delay. Surface exploration drilling and underground drilling activities are currently being reviewed in light of current economic conditions for the global mining market.

Daniel Vanin, President of Iberian commented: "We are very pleased with results at Condestable and in particular, the achievement of a labour agreement by our local team. At Aguas Tenidas, we are all working through the ramp-up process, and continue to make progress. We will be closely monitoring market conditions and company costs as we move forward in 2009".

As previously announced, Iberian developed and implemented an interim hedging programme for Aguas Tenidas. Based on current economic and market conditions, it is likely that 2009 hedges (representing approximately 35% of the hedge position) will be closed out, and reconsidered as appropriate.

About Iberian Minerals Corp.

Iberian Minerals Corp. is a Canadian-based global copper and zinc company with interests in Spain and Peru. The Condestable mine, located in Peru approximately 90 km south of Lima operates at 2.2 million tonnes per year producing copper, and associated silver and gold in a concentrate. The Aguas Tenidas mine is a copper-zinc project in the Andalucia region of Spain approximately 110 km north-west of Seville. Commissioning is underway on a 1.7 million tonnes per year underground mine and concentrator (1.5 million tonnes during ramp up) that will produce copper and zinc concentrates that also contain gold, silver and lead.


This news release contains certain "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "except", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Assumptions upon which such forward-looking statements are based included that all required third party regulatory and governmental approvals will be obtained. Many of these assumptions are based on factors and events that are not within the control of Iberian and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in the management information circular of Iberian dated November 20, 2007 and in the annual Management's Discussion and Analysis for Iberian filed with the applicable securities regulatory authorities and available at www.sedar.com. Although Iberian has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Iberian undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Iberian Minerals Corp.
    Victoria Vargas, Vice President Investor Relations
    and Corporate Communications
    (416) 815-8558