The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Revett Provides Q2 Operations and Development Update

Thursday, August 12, 2010

Revett Provides Q2 Operations and Development Update14:53 EDT Thursday, August 12, 2010 SPOKANE VALLEY, WASHINGTON--(Marketwire - Aug. 12, 2010) - Revett Minerals Inc. ("Revett" or the "Company") (TSX:RVM) (OTCBB:RVMIF) is pleased to announce continued mine productivity gains at the Troy Mine, averaging 4,123 stpd for the first six months of 2010, compared to 3,871 stpd for the first six months of 2009. Ongoing development and more production from the Lower Quartzite areas resulted in 2nd quarter grades (0.70 opt silver and 0.33% Cu) well below life of mine averages, having a negative impact on payable metal production. Grades in the third quarter have improved (1.0 opt Ag and 0.40% Cu) and are expected to continue through the end of the year. Recent Operating Highlights Include: -- Significant advancement achieved on the higher grade "C-Bed" development by Small Mines Development, completing 57% or 1,722 feet of the decline access by the end of June. Access to the "C-Beds" is expected by the end of the third quarter. -- Net cash provided from operations before capital expenditures for the 2nd quarter of 2010 was US$1.3 million despite lower average grades, compared to $1.2 in the second quarter of 2009. -- Exploration drilling initiated in January of 2010 to further define resource and reserves at Troy resulted in the discovery of the highest grade intercepts yet in the "I-beds" (see press release dated June 23, 2010). ---------------------------------------------------------------------------- Troy Production 2nd Quarter 2nd Quarter Summary(1) April May June 2010 2009 ---------------------------------------------------------------------------- Mill Production ---------------------------------------------------------------------------- Mill Feed (st) 113,120 121,049 120,190 354,359 349,925 ---------------------------------------------------------------------------- Mill Feed Rate (stpd) 3,901 4,035 4,006 3,982 3,932 ---------------------------------------------------------------------------- Silver ---------------------------------------------------------------------------- Feed Grade - Oz/Ton Ag 0.69 0.70 0.60 0.70 1.01 ---------------------------------------------------------------------------- Mill Recovery - Ag 84.89 83.07 83.87 83.92 85.70 ---------------------------------------------------------------------------- Recovered Ounces 66,399 70,179 71,370 207,948 301,770 ---------------------------------------------------------------------------- Copper ---------------------------------------------------------------------------- Feed Grade - % Cu 0.32 0.32 0.34 0.33 0.39 ---------------------------------------------------------------------------- Mill Recovery - Cu 84.44 79.19 78.92 80.74 83.77 ---------------------------------------------------------------------------- Recovered Pounds 619,893 619,658 649,384 1,888,935 2,284,770 ---------------------------------------------------------------------------- Cash Cost(2) ---------------------------------------------------------------------------- Direct Operating Cost (US$/st) $ 25.56 $ 23.22 $ 21.84 $ 23.50 $ 21.89 ---------------------------------------------------------------------------- By-Product Basis (payable)(3) ---------------------------------------------------------------------------- - Silver (US$/oz) or, $ 11.36 $ 16.28 $ 11.56 $ 13.08 $ 12.64 ---------------------------------------------------------------------------- - Copper (US$/lb) $ 2.76 $ 2.83 $ 2.31 $ 2.63 $ 1.70 ---------------------------------------------------------------------------- Co-Product Basis (payable)(3) ---------------------------------------------------------------------------- - Silver (US$/oz) and, $ 17.04 $ 16.86 $ 15.42 $ 16.40 $ 13.53 ---------------------------------------------------------------------------- - Copper (US$/lb) $ 3.09 $ 2.87 $ 2.57 $ 2.84 $ 1.80 ---------------------------------------------------------------------------- Production Table 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. Troy Development Update:The decline to access the "C-Bed" ore body has advanced significantly and is on track to be completed in the third quarter. Production from the C Bed ore body, which contains 1.2M tons of ore grading 1.61 ounces per ton silver and 0.56 percent copper, is expected to significantly improve our average mill feed grades late in the fourth quarter. The C Bed development will also provide access for future underground drill stations. 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 ---------------------------------------------------------------------------- Tons Silver Silver Copper Classification(1) (st)(2,3) (opt) Copper (%) (Moz) (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. ---------------------------------------------------------------------------- The Company has continued its exploration program success in and around the Troy Mine during the first half of 2010, discovering the highest grade intercept yet drilled in the "I-Beds" (24 feet of 1.99 ounces per ton silver & 0.43% Copper) beneath the current mine workings. (See press release dated June 23, 2010). Based on these encouraging results from the "I-Bed" drilling, the Company plans to aggressively continue exploration both vertically below and laterally adjacent to current mining areas at Troy with the objective of significantly increasing the mine life beyond the current 6 year plan. John Shanahan, President and CEO, noted "We are pleased with our continued operating, development and exploration successes during the first half of 2010. Although second quarter grades were very low, our productivity improvements combined with cost containment efforts and strong metals prices have enabled us to reinvest cash flows into the development of the "C-Beds" and increase our spending on exploration. Further cost per ounce reductions are anticipated as we bring the "C-beds" into production during the 4th quarter based on higher grades from this zone. In addition, along with the "C-bed" development we intend to review various options to accelerate our exploration based upon encouraging results from our drilling program at Troy."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 to improved grades, anticipated development of the "C-Bed and cost per ounce reductions during the fourth quarter 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.FOR FURTHER INFORMATION PLEASE CONTACT: Revett Minerals Inc. Doug Ward VP Corporate Development (509) 921-2294 or Revett Minerals Inc. Monique Hayes Investor/Corporate Communication Manager (509) 921-2294