(expressed in US dollars except where noted as C$)
TORONTO, Aug. 28, 2012 /CNW/ - Red Tiger Mining Inc., (TSXV:RMN), (the "Company" or "Red Tiger") today reported that the quarterly unaudited Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis report for the three and six months ended June 30, 2012 have been filed on SEDAR, www.sedar.com and on the Company's website, www.redtigermining.com .
The first sale of cathodes produced at Luz del Cobre resulted from the stripping of 16 tonnes of copper on May 19. During the quarter, 589 tonnes of COMEX Grade 1 copper was produced and sold at an average price of $3.42 per pound. Ore crushed and stacked on the leach pad totaled 327,045 tonnes at a grade of 0.77% Cu. Ore mined is proving the grade of copper and tonnages conform to the block model used in the feasibility study. The ore is leaching according to plan and the recovery rates are in line with expectations.
As previously reported, a storm and unprecedented rainfall stopped all production on July 17 as a result of damage on the leach pad. Over four weeks of production was lost before the irrigation on the leach pad resumed on August 17, which will adversely affect the cash flow in the third quarter. During the stoppage, mining operations continued, with newly crushed ore filling the erosion channels and voids on the pad, with increased emphasis on expanding the total area under irrigation. From August 17 to August 25, 112 tonnes of cathodes were stripped in the electrowinning plant, indicating a very quick recovery from the stoppage.
As the project has not reached "Commercial Production", sales proceeds net of costs are being credited to the carrying value of the project, and are not considered to be revenue from operations at this stage.
The loss for the three months ended June 30, 2012 before the fair value change of derivative liability was $1,212,000 compared to a loss of $807,000 for the comparative period in 2011, when all costs were being written off, as no development work was being carried out. The net loss for the six months ended June 30 was $1,664,000 in 2012 compared to a loss of $1,843,000 in the six months ended June 30, 2011. These are non-IFRS performance measures obtained by excluding a gain on the fair value change of derivative liability of $8,909,000 for the three months ended June 30, 2012, and a gain of $19,856,000 for the six months ended June 30, 2012. The net income was $7,697,000 for the second quarter of 2012 and net income of $18,193,000 for the six months, as compared to the net loss in the quarter and six months in 2011 shown above.
Management expects to reach a production level of 500 tonnes per month in October and subsequently an increase to the designed capacity of approximately 20 tonnes per day.
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.
SOURCE: Red Tiger Mining Inc.
For further information:
Red Tiger Mining Inc.
20 Toronto Street, 12th Floor, Toronto ON, M5C 2B8, Canada
Fax: 416 367 3638
Dr. Thomas Utter
President and CEO
Tel.: +1 521 662 311 8839
Frank van de Water
CFO and Secretary
Tel.: 416 869 0772