Quadra Mining Ltd.

Quadra Mining Ltd.

July 09, 2007 09:00 ET

Quadra Announces Production Results for the 2nd Quarter 2007, Increases Annual Gold Production Guidance, Closes 2006 Hedge Position

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2007) - Quadra Mining Ltd. ("Quadra or Company") (TSX:QUA) is pleased to announce the 2007 second quarter production results from its 100% owned Robinson Mine ("Robinson" or "mine") located in Ely, Nevada. Key operating metrics are shown below:

Q3 2006 Q4 2006 Q1 2007 Q2 2007 LTM
Copper produced (Million lbs) 33.3 35.3 36.6 32.2 137.4
Gold Produced (oz) 20,425 27,646 31,040 25,893 105,004
Waste mined (Tonnes 000's) 14,425 13,964 16,249 15,470 60,108
Ore mined (Tonnes 000's) 4,175 4,121 3,068 3,455 14,819
Ore milled (Tonnes 000's) 3,426 3,919 3,302 3,468 14,115
Copper grade (%) 0.69 0.67 0.67 0.59 0.66
Gold grade (g/t) 0.32 0.41 0.46 0.36 0.39
Copper Recovery (%) 63.4 61.0 75.0 71.4 67.3
Gold Recovery (%) 57.9 53.7 63.1 64.0 59.6

In the second quarter of 2007, copper production of 32.2 million pounds was in line with block model estimates that provided the basis for our annual production guidance of 125 million pounds of copper and 60,000 ounces of gold. The gold production of 25,893 ounces for the quarter was, however, significantly higher than that predicted from block model estimates. With a total of 56,933 ounces of gold produced in the first two quarters of the year, management is revising 2007 annual gold guidance upwards to approximately 90,000 ounces. Technical studies are underway to try and improve the gold grade estimated in the Veteran reserve.

Management is also pleased to announce that the last 2006 hedge commitments were priced in May 2007 with the final settlement completed in early June. Production for 2007 is unhedged but in recognition of the volatility of the commodities market and the corporate debt taken on to construct Carlota, the Quadra Board has approved a floor price protection program. Under this program, the Company has purchased put options for approximately 80 million pounds of copper with an average strike price of US$2.27 until May 2008. The cost of this program was US$2 million and the Company will continue to review this price risk management strategy which is designed to ensure the completion of the Carlota project and the current programs at Sierra Gorda and Malmbjerg under all price scenarios.

Paul Blythe, President & CEO of Quadra, said, "We have maintained our production momentum at Robinson throughout the second quarter, which also saw us finalize the last of the forward sale hedges we had in place covering our 2006 production. Robinson as a skarn deposit produces results that are likely to be variable on a monthly or quarterly basis. Over this quarter, we have seen lower grades and higher recoveries. In the second half of the year we expect to mine through the supergene zone again, with higher grades offset by lower recoveries, a result of the presence of NASOX ore (non-acid soluble copper oxide). The overall impact on copper and gold production is taken into account in our guidance, which we are on schedule to meet or exceed."

Mr. Blythe continues, "We have put in place a price protection program to ensure under all circumstances that we can complete Carlota and execute plans for our development projects while fully benefiting from the upside exposure to the copper price. While we are bullish on copper, we believe it necessary to recognise the volatility of the market in the context of our near term development and growth plans."

The financial details from this quarter are due to be released on August 15th, 2007.

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 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 2007. 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, molybdenum and other mineral prices, which are beyond the Company's control.

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

- Uncertainties with respect to the quantity or quality of molybdenum that may be produced at the Robinson Mine.

- 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;

- expected effective future tax rates in jurisdictions in which our operations are located;

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

- mineral rights ownership in countries where our 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 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.

- The effects of forward selling instruments to protect against fluctuations in copper, gold, molybdenum and other metal prices and exchange rate movements and the risks of counterparty defaults, and mark to market risk.

- 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
    Website: www.quadramining.com