Quadra Mining Ltd.

Quadra Mining Ltd.

February 02, 2010 09:00 ET

Quadra Provides Update on the Carlota Operation Following Recent Storms in Arizona

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 2, 2010) - Quadra Mining Ltd. ("Quadra" or "the Company") (TSX:QUA) provides an update on its Carlota Mine ("Carlota"), located five miles west of Miami, Arizona, which has recently experienced a series of major rain storms. Carlota's stormwater management systems functioned as planned and there have been no reportable spills under Federal, state and local reporting requirements.

The storm, which represented more than a 300 year event as measured by the National Oceanographic and Atmospheric Administration, has resulted in water accumulation in the bottom of the Carlota pit and in other stormwater containments. Excess stormwater on the leach pad has been pumped into an engineered containment area within the pad footprint. Work commenced immediately upon cessation of the storm event to maximize our ability to handle future weather events. Regulatory agencies are being kept informed of activities.

The Company evaluated the impact of the excess water on its mine plan and expects Carlota's first quarter copper production to be lower than forecast. The Carlota operations team is evaluating options to recover the pounds lost over the course of the year and Quadra believes this event will not have a significant impact on the Company's overall 2010 production guidance of 250 million pounds of copper.

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, producing copper cathode, the Franke Mine in northern Chile, producing copper cathode, 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 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, projections, mine operations, future recovery levels and future production levels. 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 and is developed based on assumptions about such risks, uncertainties and other factors, including but not limited to:

- uncertainties relating to fluctuations in copper and other metal prices;

- uncertainties related to the possible recalculation or reduction in the Company's mineral reserves and resources;

- uncertainties related to actual capital costs, operating costs and expenditures, production schedules and economic returns from the Company's mining projects;

- risks associated with the mineralogy at all mines and projects including in particular the complex mineralogy at the Robinson Mine;

- uncertainties related to the impact of excess stormwater at the Carlota Mine.

- uncertainties related to the production ramp-up at the Carlota Mine, including in particular uncertainty relating to the leaching rate and the existence of fines;

- uncertainties relating to the production ramp-up at the Franke Mine;

- uncertainties related to the current global financial conditions;

- uncertainties related to the availability of future financing necessary to undertake mining, processing, development and exploration activities on Quadra's properties

- inherent hazards and risks associated with mining operations;

- uncertainties related to the competitiveness of the mining industry;

- risks associated with Quadra being subject to government regulation, including changes in regulation;

- risks associated with Quadra being subject to extensive environmental laws and regulations, including changes in regulation;

- risks associated with Quadra's need for governmental license and permits; risk that Quadra may not find a suitable partner or obtain project financing for Sierra Gorda

- political and country risk;

- risk of water shortages and risks associated with competition for water;

- Quadra's need to attract and retain qualified personnel;

- increases in off-site transportation and concentrate processing costs;

- Quadra's dependence on one railroad and one port to ship copper from the Robinson Mine;

- risks related to the stability of mine pit walls;

- uncertainties related to the amount of funding required to achieve full production levels at the Franke Mine;

- uncertainties related to the construction quality and structural design at the Franke Mine;

- risks associated with costs of operating supplies, including sulphuric acid;

- risks in the nature of investments; and

- risks related to hedging contracts and exposure to the credit risk of counterparties.

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. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of Quadra's mining operations, no material adverse change in the market price of commodities, that the mining operations will operate in accordance with Quadra's public statements and achieve its stated production outcomes, and such other assumptions and factors as set out herein. Although Quadra has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. 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. - Media and Investor Relations
    Sophie Taylor
    Manager, Investor Relations
    (604) 689-8550
    Quadra Mining Ltd. - Media and Investor Relations
    Paul Blythe
    President & CEO
    (705) 444-1316