Revett Minerals Inc.
OTC Bulletin Board : RVMIF

Revett Minerals Inc.

October 21, 2010 08:30 ET

Revett Provides Q3 Operations and Development Update

SPOKANE VALLEY, WASHINGTON--(Marketwire - Oct. 21, 2010) - Revett Minerals Inc. ("Revett" or the "Company") (TSX:RVM)(OTCBB:RVMIF) is pleased to announce improved head grades and reduced operating unit costs during the third quarter of 2010. Mill feed averaged 3,914 stpd for the three months ended September 30, 2010 with metal grades of 0.95 opt Ag and 0.44% Cu. This represents overall improved grades of 35% over the second quarter of 2010.

Recent Operating Highlights Include:

  • The C-Bed access decline reached mineralization by quarter's end. Higher grade throughput from the C-Bed area will be brought into production in the fourth quarter of this year as more headings are developed in the ore zone.
  • Net cash(4) provided from operations before capital expenditures for the third quarter of 2010 was US$4.2 million, compared to US$1.3 million in the second quarter of 2010.
  • Direct operating costs(3) for the third quarter of 2010, calculated on a net of by-product basis was $3.18 per oz silver and $1.44 per lb copper.
  • Exploration efforts continue in and around the Troy Mine. We expect to complete one or two more surface drill holes in the fourth quarter followed by continuation of underground drilling through the winter months. A review of geophysical data is underway to define new drill targets to the north and east of current mine operations. 
Troy Production Summary(1)   July   August   September 3rd Quarter 2010   3rd Quarter 2009
Mill Production                  
  Mill Feed (st)   113,654     116,738     121,904   352,296     302,543  
  Mill Feed Rate (stpd)   3,788     3,766     4,204   3,914     3,362  
  Feed Grade - Oz/Ton Ag   0.99     1.00     0.86   0.95     1.01  
  Mill Recovery – Ag   84.66 %   82.94 %   82.05 % 83.24 %   82.42 %
  Recovered Ounces   94,954     96,595     85,888   277,437     250,982  
  Feed Grade - % Cu   0.46 %   0.47 %   0.38 % 0.44 %   0.39 %
  Mill Recovery - Cu   76.60 %   75.76 %   77.46 % 76.52 %   80.85 %
  Recovered Pounds   793,202     831,605     722,836   2,347,643     1,928,405  
Cash Cost(2)                            
  Direct Operating Cost (US$/st)   $22.65     $23.63     $21.82   $22.69     $25.03  
  By-Product Basis (payable)(3)                            
- Silver (US$/oz) or,   $1.51     $4.83     $3.18   $3.18     $13.58  
- Copper (US$/lb)   $1.23     $1.60     $1.49   $1.44     $2.29  
  Co-Product Basis (payable)(3)                            
- Silver (US$/oz) and,   $11.81     $12.02     $13.52   $12.42     $14.20  
- Copper (US$/lb)   $2.01     $2.10     $2.28   $2.13     $2.34  

Production Table and Net Cash Notes:

  1. Production statistics are on a 100% basis.
  2. Cash cost per payable ounce of silver or payable pound of copper is a non GAAP measure. The Company believes that, in addition to cost of sales, cash costs per ounce or per pound is a useful and complementary benchmark for performance and is well understood and widely reported in the mining industry. However, cash costs per ounce does not have a standardized meaning prescribed by Canadian GAAP. Investors are cautioned that cash costs per ounce or per pound should not be construed as an alternative to cost of sales determined in accordance with Canadian GAAP as an indicator of performance. The Company's method of calculating cash costs per ounce or per pound may differ from the methods used by other entities and, accordingly, the Company's cash costs per ounce or per pound may not be comparable to similarly titled measures used by other entities. All cash costs include direct mine site costs and smelting, refining and transport costs.
  3. Average commodity prices used to off-set (by-product credit basis) or allocate (co-product basis) cash costs are the monthly weighted average realized prices based on invoiced shipments.
  4. Net cash before capital expenditures is a non GAAP measure. The Company believes that net cash provided from operations is a benchmark for performance and is well understood and widely reported in the mining industry.

Production from the Troy Mine for 2010 is forecast to be 1.1 million ounces of silver and 9.2 million pounds of copper. In the third quarter, metal grades were lower than plan and the percentage of non-sulfide mineralization was higher resulting in lower metal recovered. We expect metal grades and recoveries to improve in the fourth quarter as more production is sourced from the C-Bed area.

Troy Development Update:
The decline to access the "C-Bed" ore body was completed on schedule and within budget in the third quarter. Production from the C Bed ore body, which contains 1.2 million tons of ore grading 1.61 ounces per ton silver and 0.56 percent copper is anticipated to significantly improve our average mill feed grades late in the fourth quarter and into 2011. The C Bed development will also provide access for future underground drill stations to continue further defining the I-Beds and other targeted areas. The table below identifies the estimated probable reserves for the "C-beds", which are part of the overall reported reserves at the Troy Mine. 

C-Bed Reserves (November 12, 2009) Grades Contained Metals
Classification(1) Tons (st)(2,3) Silver (opt) Copper (%) Silver (Moz) Copper (Mlbs)
Probable 1,228,530 1.61 0.56 1.9 13.7

  1. Mineral Reserves have been categorized in accordance with the classifications defined by the Canadian Institute of Mining, Metallurgy, and Petroleum ("CIMM").
  2. Does not include resources contained in planned pillars. Only material scheduled to be extracted and milled included.
  3. The estimated mineral reserves were calculated by Mr. Larry Erickson, P Eng., a Qualified Person ("QP") in accordance with Canadian National Instrument 43-101 ("NI 43-101"). They are stated using a cut-off grade of US$ 20.02 net smelter return per ton calculated at US$ 12.00/oz Ag and US$2.25/lb Cu. Mr. Erickson is an employee of Revett and is not considered independent.

John Shanahan, President and CEO, noted "We have seen significant improvements in grades in the third quarter and are poised for further improvements in the coming months and into 2011. We remain focused on our exploration and engineering efforts to realize the longer term potential of the Troy mine."

John Shanahan, President & CEO

Except for the statements of historical fact contained herein, the information presented in this press release may contain "forward–looking statements" within the meaning of applicable Canadian securities legislation and The Private Securities Litigation Reform Act of 1995. Generally, these forward looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "is not expected", "budget", "plans", "schedule", "estimates", "forecasts", "intends", "anticipates", "or does not anticipate" or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will ", "occur" or "be achieved". Forward-looking statements contained in this press release include but are not limited to statements with respect production forecast for 2010, improved grades and recoveries, anticipated production from the "C-Bed and plans to aggressively continue further exploration to increase mine life at the Troy Mine. Actual results and developments could be affected by development risks and production risks, our challenging working capital position and our inability to continue to fund operations, as well as those factors discussed in the section entitled "Risk Factors" in the Form 10-K filed on SEDAR at and with the SEC on EDGAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Revett Minerals does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Contact Information

  • Revett Minerals Inc.
    Doug Ward
    VP Corporate Development
    (509) 921-2294
    Revett Minerals Inc.
    Monique Hayes
    Investor/Corporate Communication Manager
    (509) 921-2294