SPOKANE VALLEY, WASHINGTON -- (Marketwire) -- 10/18/11 -- Revett Minerals Inc. (TSX: RVM)(NYSE Amex: RVM) today announced third quarter 2011 production from its Troy Mine in northwestern Montana of 402,700 ounces of silver and over 3.28 million pounds of copper, a 45% increase in silver and 39% increase in copper over the same period last year and 18% increase in silver and 8% increase in copper from the second quarter of 2011.
John Shanahan, President and Chief Executive Officer, said, "We've seen significant improvements in mine throughput in the third quarter culminating in record tons milled and ounces of silver produced. We will continue to capitalize on our exploration and engineering efforts as we finalize our I Bed development plans for 2012 and detail our longer term exploration program in and around the Troy mine. We are extremely pleased with these results and thank the men and women of the Troy mine for their outstanding efforts."
Highlights:
-- Mill throughput of 4,370 tons per day and silver production at 402,700
ounces are the highest quarterly numbers since the mine reopened in late
2004.
-- Net cash(1) provided from operations before capital expenditures for the
third quarter of 2011 totaled US $8.4 million. Year to date net cash(1)
from operations now totals US $19.1 million, an increase of 150% over
the same period in 2010.
-- Cash costs per ounce of silver and per pound of copper improved
significantly with the improved production levels. Cash costs(2) for the
third quarter of 2011, calculated on a net of by-product basis, were US
$4.32 per ounce silver and US $0.69 per pound copper.
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2011 2010
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Troy Production 3rd 3rd
Summary July August September Quarter Quarter
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Mill Production
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Mill Feed (st) 128,032 126,941 138,368 393,341 352,296
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Mill Feed Rate (stpd) 4,268 4,095 4,771 4,370 3,914
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Silver
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Feed Grade - opt 1.15 1.26 1.13 1.18 0.95
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Mill Recovery 86.67% 88.08% 86.10% 86.96% 83.24%
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Recovered Ounces 128,143 140,476 134,081 402,700 277,437
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Copper
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Feed Grade - % 0.52% 0.50% 0.46% 0.49% 0.44%
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Mill Recovery 83.98% 85.37% 84.17% 84.50% 76.56%
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Recovered Pounds 1,122,478 1,084,181 1,065,867 3,272,526 2,347,643
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Cash Cost(2)
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Direct Operating Cost
Per Ton (US$) $25.00 $37.86 $24.58 $29.00 $23.39
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By-Product Basis
(payable)
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- Silver (US$/oz) $8.33 ($8.65) $14.08 $4.32 $3.18
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- Copper (US$/lb) $1.24 ($0.78) $1.67 $0.69 $1.44
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Co-Product Basis
(payable)
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- Silver (US$/oz) $12.57 $18.56 $14.02 $15.18 $12.42
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- Copper (US$/lb) $1.61 $2.35 $1.66 $1.87 $2.13
Concentrate
Inventory(3)
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- Dry Metric Tons 1,516 878 1,508 1,508 178
- Silver (ozs) 140,407 86,953 162,177 162,177 14,880
- Copper (lbs) 1,270,067 732,708 1,321,756 1,321,756 126,485
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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. Significant monthly variation in revenues and operating costs are a
result of timing of concentrate shipments.
Troy Mine Exploration and Development Update
Exploration and engineering efforts have resulted in preliminary design plans for development of the I Bed area which we anticipate to commence in mid to late 2012 pending approval by State and Federal agencies. The cross section shown below depicts the location of the I Bed area and the proposed access route for mine services and ore production. We expect to finalize our plans at year end once results of the ongoing drill program are available.
In addition to ongoing drilling both below and adjacent to the Troy Mine, we are in the process of re-assaying and re-logging of old core at the JF property. We are currently drilling new holes on the JF property and plan to report updated results at year end. Geophysical survey work completed south of the Troy Mine has also identified anomalous areas for future drilling.
To view Figure 1. "Troy Mine Long Section", please visit the following link: http://media3.marketwire.com/docs/rmi_f1_1018.jpg
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 development of the I-Bed area mid to late 2012 and plans to report updated drilling results on the JF property at year end. Actual results and development 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
