Quadra Mining Ltd.

Quadra Mining Ltd.

July 07, 2008 09:00 ET

Quadra Announces a New Quarterly Production Record and Increases 2008 Production Guidance

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2008) - Quadra Mining Ltd. ("Quadra" or "the Company") (TSX:QUA) is pleased to announce a new production record of 44.6 million pounds of copper and 42,348 ounces of gold from its 100% owned Robinson Mine ("Robinson" or "Mine") for the second quarter of 2008. As a result of the continuing strong performance at Robinson, the Company is increasing its 2008 annual metal production guidance from 130 million pounds to 150 million pounds of copper and from 100,000 ounces to 115,000 ounces of gold. Key operating and sales metrics for the second quarter are shown below:

Q3 2007 Q4 2007 Q1 2008 Q2 2008 LTM (i)
Operating Metrics:
Copper production (Million lbs) 30.7 32.4 42.0 44.6 149.7
Gold production (ozs) 24,138 27,048 37,738 42,348 131,272
Waste mined (Tonnes 000's) 13,977 13,600 15,532 12,538 55,647
Ore milled (Tonnes 000's) 3,648 3,753 3,541 3,453 14,395
Copper grade (%) 0.66 0.59 0.68 0.72 0.66
Gold grade (g/t) 0.39 0.38 0.45 0.51 0.43
Copper recovery (%) 58.1 66.1 78.6 81.8 71.4
Gold recovery (%) 52.5 59.2 72.6 75.2 65.9

Sales Metrics:
Copper sales (Million lbs) 32.5 28.9 38.9 38.7 139.1
Copper price at end of period
($US/lb)(2) $3.66 $3.04 $3.82 $3.91 $3.91
Provisionally priced copper(1) -
beginning of period (Million lbs) 41.4 42.5 38.2 44.4 41.4
Average settlement price for prior
period sales subject to final
pricing during period ($US/lb) $3.52 $3.24 $3.64 $3.81 $3.57
Gold sales (ozs) 26,067 27,090 32,314 35,403 120,874
Average gold price during period
($US/oz)(3) $680 $789 $925 $896 $765
(i) Last twelve months
(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

In the second quarter 2008, Robinson continued to process ore primarily from the hypogene zone in the Veteran pit which contained higher than average head grades for both copper and gold. The higher associated recoveries, due to a head grade - recovery relationship, in conjunction with the blending and reagent strategies developed late in 2007, resulted in some of the highest recoveries so far to be achieved from the Veteran pit. As a result and following a look forward re-assessment, production guidance for 2008 has been increased to 150 million pounds of copper and 115,000 ounces of gold.

During the second half of the year, Robinson is scheduled to process more mill feed from the supergene ore which has typically resulted in lower metal production. While the operation now has significant experience with the supergene material, it will not be able to completely mitigate some of the challenges inherent in this complex ore zone. The revised guidance takes into consideration the variability in grades, recoveries and concentrate grade that is expected for the remainder of the year based on recent blast hole drilling and the existing block model.

Paul Blythe, President & CEO of Quadra, said, "We are very pleased with the exceptional year to date performance at Robinson and the continued success of the blending and other strategies that we have developed. Coupled with strong metal prices and the volume of sales, we are expecting to deliver another solid quarter when earnings are released in mid August. We have reviewed and updated our guidance to reflect results to date, our increased confidence in our operating strategies and the expected impact of the supergene zone as the year progresses."

The second quarter financial results will be announced at market open on Thursday, August 14th, 2008. Details of a conference call to be held on the same day will be issued under a separate press release.

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 under 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 may contain "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 2008. 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 and 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. 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.

- 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 and other mineral prices, which are beyond the Company's control.

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

- 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;

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

- 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.

- risks related to commodity price risk management programs and hedging contracts;

- 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.

Contact Information

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