The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Revett Provides Summary of 2010 Operations and Year End Reserves

Tuesday, February 08, 2011

Revett Provides Summary of 2010 Operations and Year End Reserves11:11 EST Tuesday, February 08, 2011SPOKANE VALLEY, WASHINGTON--(Marketwire - Feb. 8, 2011) - Revett Minerals Inc. (TSX:RVM) (OTCBB:RVMID) ("Revett" or the "Company") is pleased to announce full year operating results and year end reserve and resource estimates for the Troy Mine, located in northwest Montana. Currency is reported in United States dollars unless otherwise indicated.Troy Mine Operating HighlightsRevett is proud to have achieved its sixth consecutive year of increased productivity at its 100% owned Troy Mine. Highlights from 2010 include the following:Net cash (4) provided from operations before capital expenditures was $12.2 million; Record mill throughput with 1.3 million tons processed. Averaging 3,807 stpd for 2010 as compared to 3,725 stpd in 2009; Completion of the 3,000 ft. decline to access the higher grade C Bed area; Extended the mine life of Troy to a total of seven years with the addition of 4 million tons of mineable reserves in the I Beds; and Continued exploration efforts focusing on I Bed target areas beneath and adjacent to the existing mine infrastructure. While the production rate improved overall in 2010, an increase in development focus during the fourth quarter on the C bed area resulted in fewer active headings, temporarily reducing production and increasing direct operating costs. Head grades and metal recovery improved in January, and production is anticipated to return to planned levels as additional headings are developed. Total production for 2011 is estimated to be 1.3 million ounces of silver and 11.0 million pounds of copper. 2011 production costs on a net of by-product basis are expected to be $3.07 per ounce of silver and $1.45 per pound of copper and on a co-product basis costs are estimated to be $10.30 per ounce of silver and $2.06 per pound of copper.Troy Production Summary(1)1st Quarter2nd Quarter3rd Quarter4th QuarterTotal 2010Mill ProductionMill Feed (st)379,592354,359352,296276,6451,362,892Mill Feed Rate (stpd)4,2653,9823,9143,0743,807SilverFeed Grade – Oz/Ton Ag0.860.700.951.000.87Mill Recovery – Ag87.5%83.9%83.2%85.3%85.1%Recovered Ounces287,259207,948277,437235,4451,008,089CopperFeed Grade - % Cu0.38%0.33%0.44%0.46%0.40%Mill Recovery – Cu85.1%80.7%76.6%82.7%81.2%Recovered Pounds2,456,1901,888,9352,347,6432,101,2028,793,970Cash Cost(2)Direct Operating Cost (US$/st)$22.99$23.50$22.69$30.92$24.83By-Product Basis (payable)(3)- Silver (US$/oz) or,$5.39$13.08$3.18$8.27$7.04- Copper (US$/lb)$1.83$2.63$1.44$1.66$1.86Co-Product Basis (payable)(3)- Silver (US$/oz) and,$12.38$16.40$12.42$17.14$14.38- Copper (US$/lb)$2.30$2.84$2.13$2.38$2.38Net Cash from Operations(4)$2.1m$1.3m$4.2m$4.6m$12.2mProduction statistics are on a 100% basis. 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 indNeticator 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. Average commodity prices used to off-set (by-product credit basis) or allocate (co-product basis) cash costs are the quarterly weighted averages from the London Metals Exchange for copper or the London Daily Fix for silver. 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 Troy Reserves & ResourcesEstimated Mineral Reserves and Resources as of December 31, 2010 are as shown in the following tables:Troy Reserves (Dec. 31, 2010)GradesContained MetalsClassification(1)Tons (Mst)(2,3)Silver (opt)Copper (%)Silver (Moz)Copper (Mlbs)Proven3.01.410.734.343.8Probable7.51.130.378.454.9Total10.51.210.4712.798.7Mineral Reserves have been categorized in accordance with the classifications defined by the Canadian Institute of Mining, Metallurgy, and Petroleum ("CIMM"). Does not include resources contained in planned pillars. Only material scheduled to be extracted and milled included. 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$ 25.57 net smelter return per ton calculated at US$ 14.90/oz Ag and US$3.02/lb Cu. Mr. Erickson is an employee of Revett and is not considered independent. Troy Resources (Dec. 31, 2010)GradesContained MetalsClassification(1)Tons (Mst)(2,3)Silver (opt)Copper (%)Silver (Moz)Copper (Mlbs)Measured48.21.360.6765.5643.3Indicated14.81.130.3716.7110.5Total Measured & Indicated*63.01.300.6082.2753.8JF Property(4)11.01.400.4015.488.8Total Inferred11.01.400.4015.488.8Total Measured, Indicated & Inferred74.01.320.5797.6842.6*Pillars Incl. in Meas. & Ind.44.21.350.6659.8583.1Mineral Resources have been categorized in accordance with the classifications defined by the CIMM. Includes Proven & Probable Reserves and resources contained in existing pillars. The estimated mineral resources were calculated by Mr. Larry Erickson, P Eng., a QP in accordance with NI 43-101. They are stated using a cut-off grade of US$ 25.57 net smelter return per ton calculated at US$ 14.90/oz Ag and US$3.02/lb Cu. Mr. Erickson is an employee of Revett and is not considered independent. Resources listed for the JF Property are a historical estimate with the meaning of NI 43-101 and have not been audited by a Qualified Person. In 1992, ASARCO reported in an internal report a "Mineral Reserve" for the JF deposit of "11 million tons grading 0.4% Cu and 1.4 opt Ag." This historical mineral resource estimate, which was prepared before the adoption of NI 43-101 and uses categories other than the ones set out in section 1.2 of NI 43-101, is considered relevant. A QP has not, however, done sufficient work to classify the historical estimate as current mineral resources and accordingly, Revett does not treat ASARCO's historical estimate as current mineral resources. The reader is cautioned that the ASARCO historical estimate should not be relied upon. Revett has not yet taken the steps to validate this drilling information with new drilling data, however, Mr. Larry Erickson, P Eng., a QP in accordance with NI 43-101, has reviewed ASARCO's drilling data (ie; core logs, assay results, sections) and believes it to be reliable. Mr. Erickson is an employee of Revett. Mr. John Shanahan, President and CEO, noted "2010 has proven to be a pivotal year as our operations at Troy have provided significant cash flow and our development efforts have opened up new mining areas and identified further near term exploration targets. As we focus on realizing the full potential of the Troy Mine, meeting our 2011 production targets and advancing the Rock Creek project, we remain committed to the safety of our employees, the communities where we operate and responsible mineral development above all else."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 "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, anticipated grades and production at the Troy Mine, extending the life of mine at Troy Mine and anticipated production of the "C-bed. Actual results and developments could be affected by development risks and production risks, , as well as those factors discussed in the section entitled "Risk Factors" in the Form 10-K filed on SEDAR at www.sedar.com 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: Monique HayesRevett Minerals Inc.Corporate Secretary / Director of Investor Relations(509) 921-2294www.revettminerals.com