URSA Major Minerals Incorporated
TSX : UMJ

URSA Major Minerals Incorporated

September 15, 2010 08:30 ET

URSA Major Minerals Achieves Commercial Production at the Shakespeare Nickel Mine, Sudbury, Ontario and Provides Financial Results for the Three Months Ended July 31, 2010

TORONTO, ONTARIO--(Marketwire - Sept. 15, 2010) -

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URSA Major Minerals Incorporated ("URSA Major" or the "Company") (TSX:UMJ) announces its financial and operating results for the three months ended July 31, 2010. The company is pleased to announce that the Shakespeare Nickel Mine has achieved a profitable first quarter of commercial production.

Financial and Operating Highlights for the Quarter

  • The quarter ended July 31, 2010 was the first quarter of commercial production at the Company's Shakespeare Nickel Mine, located 70 km west of Sudbury, Ontario. The mine had previously operated at the pre-production mining stage.
  • During the quarter, the Company delivered 36,932 tonnes of ore to the Strathcona Mill for processing. The mine was in production for two months during the quarter and full operations resumed after the spring half load road restrictions ended in May.
  • Contained metals in the delivered ore totalled approximately 279,000 pounds of nickel, 318,000 pounds of copper, 17,900 pounds of cobalt and 1,200 ounces of precious metals. The recovered and contained metals are subject to mill and smelter recoveries and smelter deductions.
  • The Company achieved full budgeted output in June 2010. For the quarter, the ore averaged 0.343% nickel, 0.391% copper, 0.022% cobalt, and 1.0 gram/tonne precious metals. This is 90% of the average budgeted grade for 2010 that is based on the previous bulk sample and pre-production mined grades of 0.39% nickel, 0.44% copper, 0.03% cobalt and 1.1 gram/tonne precious metals.
  • Gross revenue of $1,602,688 was received on the sale of metals from the Shakespeare Mine.
  • In addition to receipts on the sale of metals noted previously, the Company has further base and precious metals including 315 ounces of precious metals and additional silver credits that are awaiting pricing. Revenue from these metals has not been included in the quarter.
  • The Shakespeare Mine is operating close to the Company's budgeted forecasts. Production costs for the quarter ended July 31 were $38.85/tonne as compared to forecasted costs for year to date of $34.95 per tonne of ore. After accounting for the cost of drilling and blasting, mucking and crushing, and haulage to the mill, average net revenue for 2010 is forecast to be CDN$11.93 per tonne.
  • The Company reported an operating profit for the quarter of $53,900. The operating profit was achieved with only two months of ore deliveries and does not include the full revenue stream from by- product metals. In the third quarter, revenue will reflect the full metals revenue stream including all by-product precious metals.
  • The Company's net loss for the quarter was $134,723.
  • Subsequent to the quarter, the company announced that it has initiated a 2,000 meter Phase 2 exploration drilling program at the Nickel Offsets property in the Sudbury area.

The quarterly financial statements and related Management Discussion and Analysis have been filed on SEDAR (www.sedar.com). Additionally these documents are available on URSA Major's website at www.ursamajorminerals.com. All amounts are in Canadian dollars unless otherwise indicated.

Richard Sutcliffe, URSA Major's CEO commented, "We are extremely pleased to have achieved commercial production at the Shakespeare Nickel Mine. The company has achieved a small operating profit for the first quarter of commercial production, despite the fact that the Shakespeare Mine was only in production for 2 months of the quarter and that future revenue from the significant precious metal by-product credits is not included in this quarter's results. We anticipate that the third quarter will demonstrate a further improvement in financial results as the company benefits from full production and stronger metal prices. Based on this prospect, we will move forward with our exploration plans starting with a 2,000 meter drilling program at Nickel Offsets. This program has been initiated to test high-grade nickel, copper and precious metal targets that were identified in our drilling and borehole geophysical surveying in 2009."

URSA Major is a Canadian mining company with two nickel sulphide projects containing significant NI43-101 compliant nickel and copper reserves and resources. The Company is focused on demonstrating profitable operations at the Shakespeare Mine and growing its nickel, copper and platinum group metal (PGM) deposits through exploration and development, primarily in Ontario, Canada.

This release was prepared by management of the Company who takes full responsibility for its contents. The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • URSA Major Minerals Incorporated
    Dr. Richard Sutcliffe
    President & CEO
    416-864-0615
    416-864-0620 (FAX)
    or
    URSA Major Minerals Incorporated
    Vic Hugo
    Financial Controller and Interim CFO
    416-864-0615
    416-864-0620 (FAX)
    info@ursamajorminerals.com
    www.ursamajorminerals.com