VANCOUVER, BRITISH COLUMBIA – Mercator Minerals Ltd. (TSX:ML) (“Mercator” or the “Company”) is pleased to announce its production results for the three months ended June 30, 2011 from its wholly-owned Mineral Park Mine in Arizona. Production for the quarter totaled 11.18 million pounds of copper, 1.76 million pounds of molybdenum and 180,569 ounces of silver as compared to guidance of 9.5 million pounds of copper and 1.0 million pounds of molybdenum.
During the month of June, the Mineral Park Mine produced 3,644,209 pounds of copper, a record 633,500 pounds of molybdenum, and 61,073 ounces of silver.
Operational Highlights for the three months ended June 30, 2011
- Mill throughput averaged 32,260 tons per day for the quarter;
- Record mill throughput of 41,738 tons in a 24 hour period achieved;
- Production of 10,434,143 pounds of copper contained in concentrates;
- Production of 748,196 pounds of copper cathode;
- Production of 1,762,174 pounds of molybdenum contained in concentrates;
- By-product production of 180,569 ounces of silver in concentrates.
Bruce McLeod, President and CEO said. “I am extremely pleased with the rapid integration of the two companies, Mercator and Creston, and their respective personnel. We have a very experienced and talented management and operating team that see good opportunity for increasing production, reducing costs and advancing our projects. With our strong board of directors to support us, I believe this new team will serve the shareholders very well.”
Production | Q2 2011 | YTD |
Copper in concentrate (pounds) | 10,434,143 | 19,382,895 |
Cathode Copper (pounds) | 748,196 | 1,287,993 |
Total copper (pounds) | 11,182,339 | 20,670,888 |
Molybdenum in concentrate (pounds) | 1,762,174 | 2,770,691 |
Silver (ounces) | 180,569 | 339,237 |
Mine | ||
Total tons mined | 5,379,952 | 10,767,951 |
Ore tons mined | 2,682,298 | 5,238,563 |
Leach tons mined | 1,208,897 | 2,268,994 |
Low grade tons mined | 627,163 | 1,144,991 |
Waste tons mined | 861,595 | 2,115,402 |
Mill | ||
Tons processed | 2,935,659 | 5,560,606 |
Tons processed per day | 32,260 | 30,722 |
Copper grade (%) | 0.23 | 0.23 |
Molybdenum grade (%) | 0.041 | 0.038 |
Silver grade (oz/t) | 0.105 | 0.123 |
Recoveries | ||
Copper (%) | 76.6 | 75.8 |
Molybdenum (%) | 73.6 | 65.2 |
Silver (%) | 58.7 | 49.8 |
Concentrates (1) | ||
Copper concentrates (dmt) | 27,484 | 57,718 |
Copper (%) | 19.0 | 16.8 |
Silver (oz/t) | 6.57 | 5.88 |
Molybdenum concentrates (Dry lbs produced) | 3,681,879 | 5,744,619 |
Molybdenum (%) | 47.9 | 48.2 |
(1) Adjustments based on final settlements will be made in future periods.
Phase II Construction Update
- Installation of the 3rd and 4th ball mills in the grinding circuit is 99% complete and is ready to start-up once the gas generator is on-line;
- Water system: the well field is 100% complete; the booster station upgrades are 90% complete;
- The installation of the rougher flotation (11 cells) is 65% complete, with a start-up projected for early August;
- Installation of the Phase II crusher/stacker is 50% complete, with start-up projected for late August.
Bluefish Gas Turbine Update
- Power line from the generator site to the mill is 100% complete;
- Natural gas pipeline is 100% complete and has been purged;
- Installation of the gas turbine generator is 93% complete, with a start-up projected for mid July.
Outlook
Production of copper and molybdenum concentrates is expected to ramp up from second quarter levels with the increase in available power from the Bluefish Gas Turbine and the expected mill throughput increases from the addition of the Phase II components in the processing facilities coming on line over the next several months.
2nd Quarter Financial Results Timing
Second Quarter financial results are expected to be reported on August 15, 2011. A conference call will be scheduled with the details to be released once scheduled.
El Pilar Update
The optimized Feasibility study for El Pilar has advanced significantly with scheduled completion in 3rd quarter, 2011. Metallurgical testing has essentially been completed, with final data on mining, processing and costs being assembled by the external consultants who are preparing the optimized Feasibility study.
El Creston Update
The work program on the Feasibility study for the Company’s El Creston project is ongoing, and the Company plans to deliver and file the study before the end of the year.
QA/QC
Gary Simmerman, BSc, Mercator’s VP Engineering, a Qualified Person as defined by NI43-101, supervised the preparation of and verified the Mineral Park technical information contained in this release.
Mike Broch, BSc, Geology, Msc, Economic Geology, FAusIMM, Mercator’s VP Exploration, a NI 43-101 Qualified Person, supervised the preparation of and verified the El Pilar technical information contained in this release.
About Mercator Minerals Ltd.
Mercator Minerals Ltd., a TSX listed Canadian mining company with one of the fastest growing base metal profiles in its peer group, is a leading copper and molybdenum producer with a diversified portfolio of high quality operations and projects in the USA and Mexico. Mercator provides investors exposure to current copper and molybdenum production from the large tonnage long life Mineral Park Mine in Arizona, as well as mid-term exposure to additional copper and moly production through the development of the El Pilar and El Creston deposits. All three deposits are located in favorable and stable mining jurisdictions in Arizona, USA and Sonora, Mexico.
For further information please visit the Mercator website at http://www.mercatorminerals.com or contact Bruce McLeod, President and CEO at (604) 687-7545 or Marc LeBlanc, VP Corporate Development and Corporate Secretary at (604) 981-9661.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
Per: “D. Bruce Mcleod”
D. Bruce Mcleod, P.Eng
President and CEO
