Quadra Mining Ltd.

Quadra Mining Ltd.

September 08, 2005 19:11 ET

Quadra Mining Revises 2005 Guidance

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 8, 2005) - (All monetary amounts are in thousands of US$ unless otherwise stated) -

Quadra Mining Ltd. (TSX:QUA) (the "Company"), announces that its cash cost per pound produced guidance for 2005 has been revised to reflect current production and market cost estimates and is now expected to be in the range of US$1.15 - $1.24/lb Cu produced. Primary drivers for this increase are a lower head grade, lower recoveries and higher operating costs, particularly fuel and tires. 2005 metal production is expected to be between 120 - 127 million lbs of copper and approximately 75,000 ounces of gold.

As announced in July 2005, annual production guidance was reduced as a result of the slope stability issue in the Tripp-Veteran pit and lower than planned mining rates as a result of equipment availabilities and weather-related issues. The lower overall metal recovery is due to the high levels of ore oxidation encountered in the upper benches of the pit. Operating costs have been driven by the same market conditions that have also increased the general commodities demand now in progress.

Paul Blythe, President comments, "We have encountered a number of challenges in this our first year of operations including wall stability issues, a greater degree of oxidation than was indicated in the studies available to us as well as ballooning energy and other costs. We now have a clear understanding of these issues and therefore a high level of confidence in our revised mine plan going forward. Ore production from the higher oxidized areas in the Tripp pit is essentially complete and the wall stability issues have been addressed with a managed program of de-weighting and de-watering. As we continue with our transition to owner mining we will be further focussing our efforts on mine cost control and containment. We have begun stripping in the Veteran pit and are on schedule with the molybdenum facility."

This press release has been reviewed by and received the approval of the Audit Committee.

About Quadra Mining Ltd. (TSX:QUA)

Quadra is a British Columbia corporation based in Vancouver and is a mining company whose principal asset is the Robinson Mine in Nevada. The Company has a 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 some forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ from those expressed or implied by such statements. Statements relating to revenues, growth, profits and operating expenses depend on future market conditions and risks, and are considered forward-looking thereby providing no guarantee that they will be realized.

Contact Information

  • Quadra Mining Ltd.
    Sophie Taylor, Manager, Investor Relations
    Media and Investor Relations Contact
    (604) 689-8550 (local 110)
    Quadra Mining Ltd.
    Paul Blythe, President and Director
    Media and Investor Relations Contact
    (705) 444-1316