SPOKANE VALLEY, WASHINGTON -- (Marketwire) -- 07/18/11 -- Revett Minerals Inc. (TSX: RVM) (NYSE Amex: RVM) today announced second quarter 2011 production from its Troy Mine in northwestern Montana of 342,822 ounces of silver and over 3.03 million pounds of copper production, a 65% increase in silver and 60% increase in copper production over the same period last year and 40% increase in silver and 51% increase in copper from the first quarter of 2011. Silver and Copper grades along with metal recoveries also improved, primarily from an increased production from the C Bed area.
John Shanahan, President and Chief Executive Officer, said "We have seen significant improvements in ore production in the second quarter as we're able to take advantage of our fully developed C Bed area, we are poised for continued production at planned levels in the third quarter of 2011. We also remain focused on our exploration and engineering efforts to add value, expand the mine life and realize the longer term potential of the Troy Mine."
Highlights:
-- Net cash(1) provided from operations before capital expenditures for the
second quarter of 2011 totaled US$7.5 million, a 900% increase from the
same period a year ago. Direct production cost per ton of ore increased
due primarily to the re-start of a production royalty, higher refining
costs and higher mining taxes due to higher revenues resulting from
higher metal prices. Labor and consumable costs were also slightly
higher.
-- Cash costs per ounce of silver and per pound of copper improved
significantly with the improved metal production. Cash costs (2) for the
second quarter of 2011, calculated on a net of by-product basis, were
$2.10 per ounce silver and $0.69 per pound copper.
-- Exploration efforts continued in and around the Troy Mine with
additional reserves and resources added in the C Bed area as previously
announced. We are waiting for results of ongoing drilling in the I Bed
area and a portion of the field work has been completed on a geophysical
survey south of the Troy Mine.
2nd 2nd
Troy Production Quarter Quarter
Summary(3) April May June 2011 2010
Mill Production
-------------------
Mill Feed (st) 110,942 126,259 115,617 352,818 354,359
Mill Feed Rate
(stpd) 3,826 4,209 3,854 3,964 3,982
Silver
-------------------
Feed Grade - opt 1.02 1.19 1.20 1.14 0.70
Mill Recovery 83.34% 85.22% 86.22% 85.04% 83.92%
Recovered Ounces 94,587 128,513 119,722 342,822 207,948
Copper
-------------------
Feed Grade - % 0.46% 0.54% 0.56% 0.52% 0.33%
Mill Recovery 80.13% 82.37% 84.09% 82.36% 80.74%
Recovered Pounds 817,973 1,112,243 1,098,036 3,028,252 1,888,935
Cash Cost(2)
-------------------
Direct Operating
Cost Per Ton
(US$) $ 29.79 $ 30.21 $ 27.70 $ 29.25 $ 23.50
By-Product Basis
(payable)
- Silver (US$/oz) $ 10.94 $ 1.61 ($4.25) $ 2.10 $ 13.08
- Copper (US$/lb) $ 1.33 $ 0.63 $ 0.26 $ 0.69 $ 2.63
Co-Product Basis
(payable)
- Silver (US$/oz) $ 18.59 $ 14.97 $ 12.87 $ 15.14 $ 16.40
- Copper (US$/lb) $ 2.13 $ 1.90 $ 1.68 $ 1.89 $ 2.84
1. 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.
2. All cash costs include direct mine site costs and smelting, refining and
transport costs. 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. Cash costs
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 and per pound are 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.
3. Production statistics are on a 100% basis.
Rock Creek Litigation Update
Oral arguments were held in the U.S. Court of Appeals for the Ninth Circuit in Portland, Oregon on July 14th in litigation regarding Rock Creek Alliance, et al versus the U. S. Fish & Wildlife Service (USFWS). The USFWS and Revett prevailed in the Federal District Court on the issues related to the Endangered Species Act (ESA) in May of 2010 and the environmental groups have subsequently appealed that part of the District Courts ruling to the Ninth Circuit.
A recording of the oral arguments is available at the Ninth Circuit ' s website http://www.ca9.uscourts.gov/media/view_subpage.php?pk_id=0000007810
About Revett
Revett Minerals, through its subsidiaries, owns and operates the Troy Mine and development-stage Rock Creek Project, both located in northwestern Montana, USA. These projects host significant copper and silver mineral reserves and resources and form the basis of our plan to become a solid mid-tier base and precious metals producer. Revett plans on expanding production through exploration in and around its current properties, as well as through targeted business combinations of advanced stage projects.
John Shanahan, CEO & President
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.
Contacts:
Revett Minerals Inc.
Monique Hayes
Corporate Secretary/Director Investor Relations
(509) 921-2294
Revett Minerals Inc.
Ken Eickerman
CFO
(509) 921-2294
www.revettminerals.com
