Revett Provides Update on Q3 Production and Operations at Troy Mine
Recent Highlights Include
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- Administrative process completed with the approval of the plan of
operation for the development of the higher grade "C-Bed".
- Grade estimate of 1.61 opt Ag and 0.56% Cu. located approximately
370 feet below the current mine workings.
- Compares to current mine grades of approximately 1.00 opt Ag and
0.40% Cu.
- Mill throughput continued to improve during the first nine months of
2009, averaging 3,700 tons per day compared to 3,492 tons per day in
the first nine months of 2008, a 5% improvement.
- During the first nine months of 2009, the Troy Mine produced 879,449
ounces of silver and 6.7 million pounds of copper compared to 793,998
ounces of silver and 7.1 million pounds of copper over the same period
in 2008.
Lower Revett Formation "C-Bed"
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An underground drill program conducted in 2006/2007 previously identified three new mineralized horizons in the Lower Revett Formation; the "A, B & C' Beds (labeled downward stratigraphically) ranging from 180 to 1,170 feet below the Troy Mine workings. The higher grade "C-Bed" located approximately 370 feet below the current workings contains an estimated 1,981,340 ozs of silver & 13,716,011 lbs copper. Development of the "C-Bed" in 2010 provides Revett the opportunity to phase development to depth while continuing production in existing areas and further advancing exploration in other targets.
The table below identifies the estimated probable reserves for the C-Bed, which are part of the overall reserves at Troy:
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C-Bed Reserves (November 12, 2009) Grades Contained Metals
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Classification(1) Tons (Mst)(2,3) Silver Copper Silver Copper
(opt) (%) (Moz) (Mlbs)
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Probable 1,228,530 1.61 0.56 1.9 13.7
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1. Mineral Reserves have been categorized in accordance with the
classifications defined by the Canadian Institute of Mining, Metallurgy,
and Petroleum ("CIMM").
2. Does not include resources contained in planned pillars. Only material
scheduled to be extracted and milled included.
3. The estimated mineral reserves were calculated by Mr. Larry Erickson,
P Eng., a Qualified Person ("QP") in accordance with Canadian National
Instrument 43-101 ("NI 43-101"). They are stated using a cut-off grade of
US$ 20.02 net smelter return per ton calculated at US$ 12.00/oz Ag and
US$2.25/lb Cu. Mr. Erickson is an employee of Revett and is not
considered independent.
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Q3 Production
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Troy Production Septem- 3rd Quarter 3rd Quarter
Summary(1) July August ber 2009 2008
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Mill Production
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Mill Feed (st) 81,433 111,160 109,950 302,543 321,696
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Mill Feed Rate
(stpd) 2,714 3,586 3,791 3,362 3,497
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Silver
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Feed Grade -
Oz/Ton Ag 1.04 1.05 0.93 1.01 1.04
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Mill Recovery - Ag 83.41% 81.82% 82.29% 82.51% 90.19%
Recovered Ounces 70,770 95,620 84,592 250,982 302,239
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Copper
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Feed Grade
- % Cu 0.41 0.40 0.37 0.39 0.45
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Mill Recovery
- Cu 80.12% 80.60% 81.71% 80.81% 88.74%
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Recovered Pounds 539,221 718,541 670,643 1,928,405 2,549,580
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Cash Cost(2)
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Direct Operating
Cost (US$/st) $25.80 $19.89 $22.41 $22.70 $26.83
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By-Product Basis
(payable)(3)
- Silver
(US$/oz) or, $15.88 $8.73 $13.10 $12.22 $2.65
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- Copper
(US$/lb) $2.63 $1.81 $2.30 $2.21 $2.05
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Co-Product Basis
(payable)(3)
- Silver
(US$/oz)
and, $14.21 $10.96 $13.68 $12.79 $10.22
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- Copper
(US$/lb) $2.47 $2.02 $2.35 $2.26 $2.48
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1. Production statistics are on a 100% basis.
2. Cash cost per payable ounce of silver or payable pound of copper is a
non GAAP measure. The Company believes that, in addition to cost of
sales, cash costs per ounce or per pound is a useful and complementary
benchmark for performance and is well understood and widely reported in
the mining industry. However, cash costs per ounce does not have a
standardized meaning prescribed by Canadian GAAP. Investors are cautioned
that cash costs per ounce or per pound should not be construed as an
alternative to cost of sales determined in accordance with Canadian GAAP
as an indicator of performance. The Company's method of calculating cash
costs per ounce or per pound may differ from the methods used by other
entities and, accordingly, the Company's cash costs per ounce or per
pound may not be comparable to similarly titled measures used by other
entities.
3. Average commodity prices used to off-set (by-product credit basis) or
allocate (co-product basis) cash costs are the quarterly weighted
averages from the London Metals Exchange for copper or the London Daily
Fix for silver.
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Production during the third quarter of 2009 was lower than planned due
to:
- An eight day shut down in July caused by an electrical outage; and
- Lower grades and recoveries from mining predominantly in the Lower
Quartzite ore zone.
Despite these setbacks, production estimates for 2009 remain on track with mill throughput averaging 4,040 tons per day in October and improved metals grades expected from production in the South Ore body middle quartzite zone.
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 "plans", "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 the anticipated development of the "C-Bed" in 2010. 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.
%SEDAR: 00021518E
For further information: Doug Ward, VP Corporate Development; Monique Hayes, Corporate/Investor Communications, (509) 921-2294; www.revettminerals.com
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