Stingray Copper Inc.

Stingray Copper Inc.

August 17, 2009 08:57 ET

Stingray Awards Engineering Contract to Aker Chemetics for Co-Generating Plant at El Pilar

TORONTO, ONTARIO--(Marketwire - Aug. 17, 2009) - Stingray Copper Inc. (TSX:SRY) ("Stingray" or the "Corporation") is pleased to announce that it has awarded a contract to Aker Chemetics, a division of Aker Solutions Canada Inc. ("Aker Chemetics"), for the Full Basic Engineering of a Co-Generating Plant ("Co-Gen Plant") producing both sulfuric acid and electricity. The Co-Gen Plant will produce superheated high pressure steam to be used in a turbo-generator resulting in approximately ten megawatts of electrical power. In addition, this plant will be capable of producing 750 tonne per day ("tpd") of sulfuric acid. This work was a recommendation in the April 2009, El Pilar Feasibility Study ("Study") completed by M3 Engineering and Technology Corporation and detailed in News Release 2009-02. Both the power and sulfuric acid outputs are 25% larger than was contemplated in the Feasiblity Study previously mentioned and should assist in driving down cash costs per pound of copper produced while also de-risking the project.

The size of the Co-Gen Plant is being increased to supply 100% of sulfuric acid requirements for the El Pilar operation as identified in the Study. The plant sizing as per the Study would have required Stingray to purchase additional sulfuric acid from third party markets to augment the acid plant production originally designed for 600 tpd. The 25% increase in plant size is expected to provide additional operating cost advantages by lowering overall acid costs and decreasing power costs as well as avoiding the risks of spot acid price volatility experienced in recent years. Decreasing power and sulfuric acid costs for the El Pilar project will result in less risk for two of the largest inputs for the Solvent Extraction-ElectroWinning copper operation. The primary input for the Co-Gen Plant is liquid molten sulfur that is readily available from several sources, but particularly in the Texas gulf coast as a by-product of sour gas production wells. Stingray's market investigations have indicated steady, reliable sources of sulfur can be railed directly to the El Pilar site. Stingray is anticipating that the increased size of Co-Gen Plant can be completed without a significant cost increase from the estimate included in the Study. Aker Chemetics is expected to complete their work prior to the year end. Although this Plant is slated for construction in Mexico, it will adhere to the highest industry standards by meeting or exceeding EPA and OSHA Standards.

Aker Chemetics is a world leader in executing advanced technology-based engineering and construction projects for mining and mineral-processing companies. They provide technologies that are offered on a worldwide basis to customers in the form of engineered systems, proprietary and nonproprietary equipment, as well as fully erected systems and plants. Aker Chemetics' expertise encompasses all of the required engineering disciplines and project execution skills for the Co-Gen Plant Full Basic Engineering work they will be providing.

Stingray is actively pursuing project financing alternatives while continuing to develop the El Pilar project for future mine construction. Basic engineering is also underway in several other areas of the project. The company is well funded with roughly $15.5 million in working capital.

Stingray Website:

TSX Symbol: Common Shares - "SRY"

Issued: 58,725,982 common shares

Forward Looking Statements:

Certain statements contained in this news release, including those regarding production, costs, timing of permitting, construction or production, future financial or operating performance and other statements that express management's expectations or estimates of future performance constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. Information concerning the interpretation of mineral resource and reserve estimates and capital cost estimates may also be deemed as forward-looking statements as such information constitutes a prediction of what mineralization might be found to be present and how much capital will be required if and when a project is actually developed. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Corporation cautions the reader that these statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
These risks, uncertainties and other factors include, but are not limited to: general business and economic conditions; the supply and demand for, deliveries of, and the level and volatility of prices of copper as well as petroleum products; the timing of the receipt of regulatory and governmental approvals for the Corporation's development project and other operations; the availability of financing for the Corporation's development project on reasonable terms; Stingray's estimation of its costs of production, its expected production and its productivity levels, as well as those of its competitors; power prices; the ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; the ability to attract and retain skilled staff; engineering and construction timetables and capital costs for Stingray's development project; market competition; the accuracy of the resource estimate (including, with respect to size, grade and recoverability) and the geological, operational and price assumptions on which it is based; tax benefits and tax rates; the Corporation's ongoing relations with its employees, its business partners and joint venture partners and the local communities. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in commodity prices and, particularly, copper prices, access to skilled mining development and mill production personnel, results of exploration and development activities, the Corporation's limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. These factors are discussed in greater detail in the Corporation's most recent Annual Information Form filed on SEDAR. Other assumptions are also more fully described in the Study.

The Corporation cautions that the foregoing list of important factors is not exhaustive. Investors and others who base their decisions on the Corporation's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Moreover, these forward-looking statements may not be suitable for establishing strategic priorities and objectives, future strategies or actions, financial objectives and projections other than those mentioned above.

Contact Information

  • Stingray Copper Inc.
    Steve Brunelle
    Vice President
    (416) 368-6240
    Stingray Copper Inc.
    Peter Mordaunt
    CEO & Chairman
    (416) 368-6240