Quadra Mining Ltd.

Quadra Mining Ltd.

July 10, 2007 09:00 ET

Quadra Announces Development Plans for the Malmbjerg Molybdenum Project in Greenland

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2007) - Quadra Mining Ltd. ("Quadra or Company") (TSX:QUA) is pleased to announce that its 82% subsidiary, International Molybdenum Plc ("InterMoly"), has commenced the feasibility level studies required to make a development decision on the Malmbjerg project in Greenland. The budget through to the end of the study period is US$15 million with a completion target for the first half of 2008.

Work includes in-fill and geotechnical drilling, pilot plant testing of a bulk sample, environmental permitting applications, basic engineering and cost studies. Previous exploration identified an NI 43-101 compliant Measured and Indicated resource of 560 million pounds of contained molybdenum and the current in-fill program is designed to add drill density and convert some material previously categorized as waste to ore. The project team is on site and drilling is underway. A number of environmental consultants and engineers including staff from the Danish engineering company MTHojgaard, Wardrop Engineers and Knight Piesold are also actively working on the project.

Paul Blythe, President & CEO, comments, "The immediate objective going forward is to confirm the economics of the project, explore funding opportunities and to establish a development strategy. An updated NI 43-101 compliant Technical Report will follow this exercise and will allow us to firm up design criteria and optimise development and execution concepts."

The Malmbjerg project is located on the east coast of Greenland and is one of the highest grade molybdenum projects amenable to open pit mining that is currently being considered for development. The studies carried out by InterMoly before the acquisition proposed a conventional open pit operation with a production rate of approximately 23 million pounds per year of molybdenum commencing in 2011.

About Quadra Mining Ltd. (TSX:QUA)

Quadra is a British Columbia corporation based in Vancouver and is a mining company whose principal assets are the Robinson Mine in Nevada, producing copper and gold, the Carlota copper leach project in construction in Arizona, the Sierra Gorda advanced exploration copper-molybdenum project in Chile and the Malmbjerg molybdenum development project in Greenland. The Company has the 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 statements" concerning Quadra and includes, among other things, statements concerning the Malmbjerg Project that is based on InterMoly's published expectations, estimates and projections, including information with respect to the future production of the Malmbjerg Project which Quadra has not independently established or verified or assessed the assumptions underlying it. Generally, the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates" or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause 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 cost and logistical challenges of working in the region where the Malmbjerg Project is located.

- Uncertainties related to the accuracy of the resource estimates at the Malmbjerg Project and the geotechnical and density factors and diminishing quantities or grades of reserves.

- Uncertainties related to expected mining production rates, timing of production and the associated metal recoveries.

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

- Uncertainties relating to determining capital costs and operating costs of a mineral project.

- Uncertainties related to judicial or regulatory proceedings.

- Changes in, and the effects of, the laws, regulations and government policies affecting mining operations.

- Changes in general economic conditions, the financial markets and in the demand and market price for 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 Danish Krone.

- Environmental issues and liabilities associated with mining including processing and stock piling ore and spent ore.

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