Troy Mine posts 1st Quarter Profit Report
Revett Minerals, Copper & Silver mine
May 9, 2006
Revett Minerals Inc, owner of the Troy Mine in Troy, Montana, has reported its first ever positive earnings, driven by improving operations at their Troy Mine and very strong commodity prices. During the first quarter of 2006, the Troy Mine sold 1.8 million pounds of payable copper and 225,679 ounces of payable silver, and reported revenue of $7.4 million. The Troy Mine reported strong first quarter operating income (100% basis) of approximately $1.4 million.
Revett Minerals Inc, based out of Spokane, Washington, acquired the Troy Mine from ASARCO Inc in 1999, along with the Rock Creek project. These mines produce copper and silver ore.
Revett put the Troy mine back into production in April, 2004. Full production is expected during the second quarter of 2006, with total 2006 production estimated to be 2.9 million ounces of silver and 26.2 million pounds of copper. At full capacity, the Troy Mine is expected to average 3.2 million ounces of silver and 26.4 million pounds of copper production per year, according to a press release issued by the company.
Revett received a favorable Record of Decision for the development of the Rock Creek Mine from the U.S. Forest Service, and the Montana Department of Environmental Quality, in 2003. The first phase of development will commence in 2006 when the company will drive an evaluation adit into the ore body, with the objective of producing a revised technical and economic feasibility study. This phase is expected to take 2-3 years.
Presuming a positive feasibility study, and the successful financing of the capital costs, Revett intends to develop Rock Creek as an approximate 10,000 ton per day underground mine / conventional mineral flotation processing operation, with estimated annual production of 6 million ounces of silver, and 52 million pounds of copper over the life of the mine.
During the quarter ending March 31, 2006, the mill processed ore at the rate of approximately 3,142 tons per day. This compares with an average of 2,145 tons milled per day during 2005. While improvements are being made in increasing mill throughput, Revett continues to focus on efforts to further increase mill throughput. The company is investigating the possibility of acquiring an additional production drill and efforts are continuing to increase training, maintenance planning and safety at the Troy Mine.
According to Revett, based on the drilling to date, Rock Creek contains an estimated inferred resource of 136.6 million tons grading 1.67 ounces silver per ton and 0.72% copper, containing approximately 229 million ounces of silver and over 2 billion pounds of copper using a cut off grade of US $10.00 per ton.
In summarizing the performance of the Company, during the first three months of 2006, Mr. William Orchow, President and CEO of Revett Minerals, stated, "We are delighted to see that both Revett Minerals and the Troy Mine have achieved their first ever quarter of positive net earnings. The improving financial performance is being driven by higher mill throughput and strong metal prices."
Related Links:
Revett Minerals www.revettminerals.com
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