Revett Provides Operational Guidance and Hedging for 2010
SPOKANE VALLEY, WA, Jan. 19 /PRNewswire-FirstCall/ - Revett Minerals Inc. ("Revett" or the "Company") (TSX: RVM/OTCBB: RVMIF) is pleased to issue operational guidance and an outline of its metals hedging program for 2010.
Having successfully met many challenges during the past year, Revett is poised to increase emphasis on its core business objectives in 2010: major focus will include the following:
- Advance development stage Rock Creek project. All necessary permits for
Phase One are in place and the Company is currently working with
government agencies to finalize reclamation bonding. Ruling on
environmental challenges is anticipated by the end of first quarter
2010.
- Development of the Revett Formation "C beds", commencing in late
January with operations to access this new zone. The higher grade
"C-beds" are located approximately 370 feet below current workings at
the Troy Mine and production from the "C-beds" is expected to occur by
the end of this year.
- Effectively and efficiently operate the producing Troy Mine in a safe
and environmentally conscious manner, while improving productivity and
maintaining direct operating cost reductions.
- Further exploration in and around the Troy mine through expanding our
current land position and by continuing drill programs designed to
extend and evaluate mineralization.
- Selectively review new business opportunities which could provide
significant value and growth.
John Shanahan, President and CEO stated, "In 2009, the Company completed many of its near-term objectives by reducing direct operating costs at the producing Troy Mine, restructuring debt and streamlining the corporate structure. As a result, we enter 2010 with a stronger and clean balance sheet, a solid operating record and greater capacity to expand our development and growth efforts for both the Troy Mine and Rock Creek project."
Operational Guidance
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Production at the Troy Mine is expected to be approximately 1.3 million ounces of silver and 10.7 million pounds of Copper for 2010. Based on the current mine plan, mill throughput is anticipated to exceed the 2009 estimated average of 3,745 tons per day, averaging 4,049 tons per day for 2010. Grades are also anticipated to improve slightly averaging 1.01 ounces per ton silver and 0.43% copper; compared to 1.00 ounces per ton silver & 0.39% Cu in 2009. A key objective is to maintain operating costs in a range similar to those in 2009 which were approximately 20% lower than 2008.
Estimated Production for 2010:
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1st 2nd 3rd 4th
Troy Production Quarter Quarter Quarter Quarter
Summary 2010 2010 2010 2010 2010
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Mill Production
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Mill Feed
(st) 351,558 361,658 367,317 369,008 1,449,542
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Mill Feed Rate
(stpd) 3,950 4,064 4,081 4,100 4,049
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Silver
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Feed Grade -
Oz/Ton Ag 0.93 1.03 1.01 1.07 1.01
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Mill Recovery
- Ag 87.31% 86.60% 88.12% 89.68% 87.97%
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Recovered
Ounces 286,901 321,637 327,149 354,814 1,290,500
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Copper
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Feed Grade -
% Cu 0.42 0.45 0.44 0.43 0.43
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Mill Recovery
- Cu 85.02% 84.32% 85.80% 87.33% 85.63%
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Recovered
Pounds 2,482,626 2,719,868 2,748,005 2,799,203 10,749,703
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Hedging
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Revett has hedged approximately 50% of its estimated 2010 copper production in two tranches at an average of US$2.94 per pound; and, 25% of its estimated silver production at US$16.25 per ounce. This hedging ensures that approximately 75% of estimated monthly cash operating costs are covered with the Company's hedging program. The remaining 50% of copper and 75% of silver production that has not been hedged enables the Company to capitalize on potential future metal price increases.
About Revett
Revett Minerals, through its subsidiaries, owns and operates the currently producing Troy Mine and development-stage Rock Creek Project, both located in northwestern Montana, USA. The proven reserves at the Troy Mine and significant resources at the Rock Creek project will 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
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 mill throughput, anticipated grades and production at the Troy Mine, anticipated development of the "C-bed" in 2010 followed by production form the "C-beds by the end of 2010 and statements, that all development work at Rock Creek will be conducted in an environmentally responsible manner. . Actual results and developments could be affected by development risks and production risks, our challenging working capital position and our inability to continue to fund operations, 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.
SOURCE REVETT MINERALS INC.
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