Vancouver Operating challenges have forced Quadra Mining (QUA-T) to lower production estimates and raise cash-cost projections at the Robinson copper-gold mine near Ely, Nevada.
In July, the company reported that wet weather in the second quarter had caused premature slope movement at a portion of the Tripp-Veteran pit. The subsequent de-weighting program reduced equipment availability, mining rates and head grades. Recoveries were reduced as well, owing to higher than expected levels of oxidation in the upper benches of the pit.
Production estimates for 2005 were revised downward to 133 million lbs of copper and 66,000 oz. gold from the original estimate of 147 million lbs. copper and 62,000 oz. gold.
Cash costs are expected to rise to the range of US$1.15 to US$1.24 per lb. copper from the initial forecast of US$1.09 per lb., not just because of lower grades and recoveries, but also because of higher costs for basic operating items such as fuel and tires.
President Paul Blythe says the company has a clear understanding of the various operating challenges faced in the mine’s first year, "and therefore a high level of confidence in our revised mine plan going forward." He adds that mining of higher oxidized areas in the pit is complete, and wall stability issues have been addressed. The company now intends to focus its efforts on cost control and on managing the transition from contract to owner mining.
Quadra is installing a US$7.75-million molybdenum circuit that could produce an estimated 1.6 million lbs. of moly from the Robinson mine, starting in 2006.
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