Quadra Mining Ltd.
TSX : QUA

Quadra Mining Ltd.

April 21, 2009 09:00 ET

Quadra Announces First Quarter 2009 Production Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 21, 2009) - Quadra Mining Ltd. ("Quadra" or "the Company") (TSX:QUA) is pleased to announce production results for the first quarter of 2009 from its two 100% owned operating assets, the Robinson Mine ("Robinson") located in Ely, Nevada and the Carlota Mine ("Carlota") located in Globe-Miami, Arizona. Production was in line with expectations from both operations with a combined total of 43.3 million pounds of copper and 34,649 ounces of gold for the three months ended March 31, 2009.

Robinson

Robinson produced 36.7 million pounds of copper and 34,649 ounces of gold during the first quarter. Higher than expected copper head grades were encountered during the quarter and although the gold grade was slightly lower than expected, this was more than offset by substantially higher gold recovery. Ore blending and flotation practices continued to deliver improved metallurgical performance.

Mining continued in the Veteran pit, which will continue to provide most of the ore until late 2010, but also commenced in the Kimbely /Wedge area of the Ruth pit as per the 2009 mine plan. Initiation of mining in this new pit area required moving some of the major loading equipment which resulted in lower pit productivity.

Copper sales from Robinson for the first quarter were 34.5 million pounds. The increasing copper price during the quarter will result in positive provisional pricing and mark to market adjustments to prior quarter sales.

Key operating and sales metrics are shown below.



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Robinson Mine Q2 2008 Q3 2008 Q4 2008 Q1 2009 LTM(i)

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Operating Metrics:
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Copper production
(Million lbs) 44.6 38.6 34.5 36.7 154.4
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Gold production (ozs) 42,348 30,629 26,913 34,649 134,539
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Waste mined
(Tonnes 000's) 14,462 14,263 13,527 8,379 50,631
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Ore milled (Tonnes 000's) 3,453 3,489 3,358 3,407 13,794
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Copper grade (%) 0.72 0.64 0.69 0.65 0.67
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Gold grade (g/t) 0.51 0.42 0.48 0.42 0.46
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Copper recovery (%) 81.8 78.7 68.1 75.4 75.2
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Gold recovery (%) 75.2 65.8 52.2 75.4 66.7
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Sales Metrics:
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Copper sales
(Million lbs) 38.7 40.4 29.2 34.5 142.8
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Copper price at end of
period ($US/lb) (2) $3.91 $2.91 $1.33 $1.83 $1.83
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Provisionally priced
copper (1) - beginning of
period (Million lbs) 44.4 51.8 51.0 43.2 44.4
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Average settlement price
for prior period sales
subject to final pricing
during period ($US/lb) $3.81 $3.44 $1.83 $1.56 $3.78
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Gold sales (ozs) 35,403 35,151 22,844 30,258 123,656
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Average gold price during
period ($US/oz) (3) $896 $869 $796 $908 $867
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(i)Last twelve months

Notes:

(1) Copper that has been sold but has not been subject to final pricing.
Under current sales contracts, final pricing for copper sales is
generally set at least four months after the time of shipment
(2) The average price used to value provisionally priced copper
(3) Average daily price of the London am/pm fix


Carlota

Carlota produced 6.6 million pounds of copper during the first quarter and production was in line with mine plan estimates. Ore placement is on schedule with some 1.7 million tonnes of ore placed on the leach pad during the first quarter. Ore is exhibiting leaching characteristics and acid consumption as predicted in the Technical Report. The plant facilities are continuing to ramp up and fine tuning of the plant continues to optimize operations and further build up copper production. The first sale of cathode copper was completed during the first quarter.

Key operating and sales metrics are shown below.



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Carlota Mine Q1 2009
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Operating Metrics:
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Copper production (Million lbs) 6.6
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Waste mined (Tonnes 000's) 4,518
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Ore placed (Tonnes 000's) 1,732
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Copper grade (%) 0.25
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Sales Metrics:
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Copper cathode sales (Million lbs) 5.9
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Average realized price for the period $1.49
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Paul Blythe, President & CEO of Quadra said, "Both of our operations are delivering at or better than plan and we are very much on track to meet guidance. Progress at Carlota is meeting expectations with the operation ramping up and driving hard towards completing the creek diversion, the key objective for 2009. With the Centenario transaction now finalized and with the Franke Mine advancing towards start-up of production, Quadra will soon have an asset portfolio of three operating mines and two significant development projects."

The first quarter financial results will be announced on May 12th 2009. Dial in details of the accompanying conference call will be issued under separate release. Quadra's Annual General Meeting will be held on May 14th, 2009 at 2.00pm at the Fairmont Hotel in Vancouver.

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 Mine in Arizona, the Sierra Gorda advanced exploration copper-molybdenum project in Chile and the Malmbjerg molybdenum development project in Greenland. Quadra recently acquired all of the issued and outstanding common shares of Centenario Copper Corporation, whose principal asset is the Franke SX/EW, heap leach project in northern Chile. 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 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 includes, among other things, statements with respect to Quadra's business strategy, plans, outlook, long-term growth in cash flow, earnings per share and shareholder value, projections, targets and expectations as to reserves, resources, results of exploration (including targets) and related expenses, property acquisitions, mine development, mine operations, mine production costs, drilling activity, sampling and other data, estimating grade levels, future recovery levels, future production levels, capital costs, costs savings, cash and total costs of production of copper, gold and other minerals, expenditures for environmental matters, projected life of Quadra's mines, reclamation and other post closure obligations and estimated future expenditures for those matters, completion dates for the various development stages of mines, availability of water for milling and mining, future copper, gold, molybdenum and other mineral prices (including the long-term estimated prices used in calculating Quadra's mineral reserves), currency exchange rates, debt reductions, timing of expected sales and final pricing of concentrate sales, the percentage of anticipated production covered by option contracts or agreements, anticipated outcome of litigation and personnel issues. 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" and similar expressions. 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 reserve and resource estimates and 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.

- Provisional payments on concentrate material that the Company sells; uncertainty in the final metal prices used for the computation of final settlement exists such that final settlement could be less than the cost of production plus other liquidity requirements.

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

- Uncertainties related to feasibility studies and other studies that provide, among other matters, estimates of expected or anticipated costs, expenditures and economic returns from a mining project.

- Uncertainties related to the completion, start-up and ongoing production at Carlota, including costs associated with the construction of the Pinto Creek Diversion.

- Uncertainties related to the ability to obtain and retain or renew necessary licences, permits, and other government authorizations, including the necessary permits to complete the dewatering of the Ruth pit, at operating and development projects.

- Uncertainties related to judicial or regulatory proceedings, including whether the permits required for development and operating activities will be obtained and whether existing permits will be challenged.

- Changes in, and the effects of, the laws, regulations and government policies affecting Quadra's 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 or royalties in jurisdictions in which Quadra's operations are located;

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

-- mineral rights ownership in countries where Quadra's 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, diesel fuel, petroleum, steel, concrete, sulphuric acid, explosives, truck tires and other operating supplies, refining and treatment costs, transportation charges, electricity and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar and Canadian dollar.

- The effects of derivative instruments to protect against fluctuations in copper, gold and other metal prices, exchange rate movements, fuel price changes, and the associated mark to market risks.

- 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).

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

- Labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which Quadra operates 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 Quadra's mines or interrupt the delivery of Quadra's product to customers.

- Quadra's reliance on a single producing property and on a start-up property.

- Uncertainties related to potential future breaches of covenants and undertakings contained in agreements, by Quadra or its suppliers, that could result in a significant loss to Quadra

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 Annual Information Form. 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, unless required to do so by law.

Contact Information

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