(expressed in US dollars except where noted as C$)
TORONTO, May 29, 2012 /CNW/ - Red Tiger Mining Inc., (TSXV:RMN), (the "Company" or "Red Tiger") today reported that the quarterly unaudited Consolidated Financial Statements and Management's Discussion and Analysis report for the three months ended March 31, 2012 have been filed on SEDAR, www.sedar.com and on the Company's website, www.redtigermining.com .
Activity during the first quarter at Luz del Cobre was focused on the completion of the leach pad and construction of the solvent extraction and electro-winning plants, while at the same time actively mining, surface stripping and crushing ore to place on the leach pad. During the three months ended March 31, 174,500 tonnes of ore were mined, with an average grade of 0.77% copper. 86,100 tonnes, including stockpiled ore, at an average grade of 0.75% copper were crushed and stacked on the leach pad. Irrigation of the stacked ore with leach solution commenced at the end of March and the first production of cathodes resulted from the stripping of 16 tonnes of copper on May 19. In the ten days to May 28, a total of 168 tonnes of cathodes were stripped. Based on the analysis of spot check samples from cathodes produced (assayed by CSAL Inc., Copper State Analytical Lab, Prescott, Arizona, USA), the produced copper is of high quality and purity and the Company is of the opinion that it meets COMEX Grade 1 specifications.
Thomas Utter, CEO reported that he was highly satisfied with the results of the first two weeks of production and that he was of the opinion that Luz del Cobre could be operating very close to its design capacity within weeks, an estimated 15 million pounds of copper per year.
On May 28, 2012, the Company completed a portion of a Cdn$3 million non-brokered private placement to insiders of the Company for gross proceeds of Cdn$2,000,000, consisting of 3,636,362 units ("Units") at Cdn$0.55 per Unit. Each unit consists of one common share and one common share purchase warrant, entitling the holder to purchase one additional common share at Cdn$0.75 per share for three years.
The loss for the three months to March 31, 2012 before the fair value change of derivative liability and income taxes was $451,000 compared to a loss of $1,021,000 for the comparative period in 2011, when all costs were being written off, as no development work was being carried out. These are non-IFRS performance measures obtained by excluding a gain on the fair value change of derivative liability of $10,947,000 in the three months ended March 31, 2012. The net income was $10,496,000 for the first quarter of 2012, compared with a loss $1,036,000 in the comparable period in 2011.
Proceeds from the sale of copper in the second quarter of 2012, net of cost of production, will be credited against the capital cost of the Luz del Cobre project, as the project will not have attained the "Commercial Production" stage which requires a period of time with production at a consistent level, at a percentage of designed capacity, and cash flow positive.
Thomas F. Utter, Dipl.-Geol, Dr.phil.nat., (Eurogeologist) acted as Qualified Person, as defined in NI43-101, with respect to the disclosure of the scientific and technical information contained in this news release.
Red Tiger is listed on the TSX Venture Exchange (symbol "RMN"). Common shares outstanding: 69,193,537.
This News Release contains forward-looking statements which are typically preceded by, followed by or including the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions.
Neither TSXVenture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information: