ROCA-MAX Molybdenum Mine Achieves Commercial Production
17 Aprile 2008 - 12:12AM
Marketwired
VANCOUVER, BRITISH COLUMBIA ("Roca" or "the Company") provides
the following update on operations and development activities at
the MAX Molybdenum Project near Revelstoke, British Columbia.
Highlights of this update include;
- Phase I Commercial Production was achieved on April 12,
2008;
- Startup operations produced approximately 410,000 lbs of
contained molybdenum in concentrate;
- Key Phase II expansion work to be completed in Summer 2008;
and,
- Phase I target production rates recently achieved.
Phase I Commercial Production Achieved
In February 2008, while operating at a prescribed lower
throughput rate for startup, the MAX mine and mill achieved
continuous daily throughput of approximately 80% of its Phase I
design rate of 500 tonnes per day. During the period, the mill also
achieved molybdenum recovery rates averaging 90%, exceeding the
design recovery of 87%.
Phase I ore grade material has recently been supplied from
underground stopes and delivered directly to the MAX mill and
concentrator. Based on a 10-day average grade of the ore supplied,
the diluted head grade from the mine exceeded 75% of the planned
mine-diluted grade of 1.7% MoS2. As a result of this recent
development, the Company is declaring that Phase I commercial
production was achieved on April 12, 2008.
Startup Operations
Startup operations at the MAX Molybdenum Mine have now overcome
minor challenges and disruptions to commissioning resulting from
crusher and mill equipment modifications, process optimization, and
reagent quality control. As planned, the initial operations made
use of lower-grade stockpiled development rock to facilitate the
startup production run. That material was significantly lower in
grade than the ore currently being processed. During the period,
the MAX operation delivered approximately 880,000 dry lbs of
concentrates containing an estimated 410,000 lbs of molybdenum,
with a gross metal value of $13.5 million based on average
molybdenum oxide prices during the period. Proceeds received from
concentrate sales during startup have been used for completion
costs and to fund ongoing Phase II expansion of the mine and
mill.
Phase II Expansion and Development
Previously, the Company announced the development of a second
adit to the mine working area. Adit #2 recently reached a
break-through location to workings in the mine, and final
completion of the connection is expected early in May 2008. Once
connected, the underground mine will be capable of achieving its
Phase II ventilation requirements. This will allow for concurrent
mine development and production to increase to 1,000 tonnes per day
for the first time in the history of the project.
The Company has also previously announced the acquisition of a
third primary ball mill. The installation of this mill will allow
for greater production flexibility and will provide for a nominal
capacity of at least 1,000 tonnes per day. The third mill has been
delivered to the site and power distribution systems and controls
have been prepared. Engineering of a new mill base is complete and
construction will commence shortly, with the new equipment to be
fully commissioned by the fall of 2008. A concentrate drying system
will also be installed during the month of May 2008, which will
assist in controlling moisture content in the concentrates
produced.
The Company plans to seek a graduated permit increase for the
operation of the Phase II mine enabling it to produce at the
as-built capacity in late 2008 and beyond. The application for this
increase in production rate will be submitted after environmental
and water quality data is collected and compiled this
spring/summer. The information will demonstrate that the mine is
working well within its compliance requirements and with minimal
impact to the environment.
Production Targets
Phase I target production rates are currently being realized and
are equivalent to approximately 300,000 lbs of contained molybdenum
in concentrate production per month. In the coming weeks, mill
throughput rate is expected to increase as all process operations
are raised to Phase I capacity.
Completion of the Phase II expansion work, as described above,
will provide opportunities for the mine and the mill to operate at
nominal rates of 1,000 tonnes per day. At those throughput rates,
and estimated tonnes and grades available from the mine schedule,
the Phase II production target for the remainder of calendar 2008
is estimated to be approximately 600,000 lbs of contained
molybdenum per month.
Accounting and Financial Reporting
Proceeds from sales of molybdenite concentrates from the date of
commercial production forward will be recorded as revenues and
associated costs treated as operating expenses which will first be
reflected in the Company's financial statements dated May 31, 2008
to be reported in July 2008. All costs associated with Phase I
production, have been capitalized to date, with any startup
concentrate proceeds recorded as a reduction to capital costs in
accordance with Canadian GAAP. Net pre-production costs will be
amortized on a unit of production basis over the Company's Phase I
mine plan.
The permitted Phase I mine plan for MAX will focus on the
deposit's high-grade zone containing 280,000 measured and indicated
tonnes grading 1.95% MoS2 (refer to T.N. Macauley's 43-101
compliant technical report dated September 2004 available via
SEDAR). Molybdenum oxide currently trades in the US$33-34/lb.
range.
ROCA MINES INC.
Scott E. Broughton, P.Eng. - President & CEO
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
Contacts: Roca Mines Inc. Doug Fosbrooke Investor Relations
(604) 684-2900 (604) 684-2902 (FAX) Email: info@rocamines.com
Website: www.rocamines.com
Grafico Azioni ROK Resources (TSXV:ROK)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni ROK Resources (TSXV:ROK)
Storico
Da Gen 2024 a Gen 2025