•Site infrastructure construction is nearly complete •Processing of ore at
Mining at the Broken Hammer open pit operation which commenced earlier this year continues to meet the targeted production rate, averaging 800 tonnes per day. Construction of the site infrastructure, which is continuing concurrently with mining, is nearly complete. As planned, approximately 18,000 tonnes of ore has been produced to date. An ore stockpiled of 12,000 tonnes remains at the Redstone mill in
Broken Hammer Mine Description
The Broken Hammer project was discovered by Wallbridge's exploration team, with the first identification of mineralization in 2003. Wallbridge commenced construction in March of this year and has advanced the project into an open pit operation, with the first material already shipped to the mill. An in-pit Cu-PGE-Ni mineable reserve of approximately 193,000 tonnes will be mined utilizing the services of
Summary of the Broken Hammer Updated Mineral Reserve Estimate
Wallbridge has prepared an updated in-pit mineral reserve estimate incorporating results from initial mining, the 2011 bulk sample at the
A global mining recovery of 95% and 5% dilution (at zero grade) was used in the calculation. Table 1 below summarizes the in-pit reserve estimate.
Table 1: Mineral Reserve estimate, with an effective date of
The Qualified Person for the Broken Hammer updated in-pit reserve estimate is Mr.
Wallbridge's management and internal Qualified Person estimate that the project should generate net cash flow of approximately
A summary of projected revenue, operating costs and capital expenses are as follows:
FORECASTED REVENUE ('
FORECASTED COSTS ('
Mining incl. G&A
Crushing & Hauling
FORECASTED CASHFLOW ('
TOTAL COSTS INCL. CAPITAL & ROYALTIES
During month of June, in a move to ensure the Broken Hammer mine is able to achieve its financial targets over its short life span, Wallbridge hedged some of its payable metals from approximately 20% of production at the Broken Hammer open pit at the following average prices:
AVERAGE HEDGE PRICE
Cautionary Notes regarding Forward Looking Statements
The Broken Hammer production and revenue forecast was not prepared based on a final feasibility study. The current forecasts are made based on the results of internal metallurgical study of recoveries expected at the Redstone mill using a gravity separation and flotation process. It is further based on the sale of concentrate to smelters, mining contractor's unit prices as being conducted by
The Qualified Person responsible for the preparation of this press release is Mr.
Wallbridge is also actively exploring a large package of properties in
Wallbridge has a record of successfully generating high potential mineral projects and structuring partnerships and new companies to create value for its shareholders and its partners. As such, Wallbridge currently retains its founding stake in its first spin-out company, Duluth Metals Limited (TSX:DM), at 10.1 million shares (7.4%) as well as 28.4 million shares (40.5%) in its second spin-out company, Miocene Metals Limited (TSXV:MII).
This press release may contain forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) relating to, among other things, the operations of Wallbridge and the environment in which it operates. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Wallbridge has relied on a number of assumptions and estimates in making such forward-looking statements, including, without limitation, the costs associated with the development and operation of its properties. Such assumptions and estimates are made in light of the trends and conditions that are considered to be relevant and reasonable based on information available and the circumstances existing at this time. A number of risk factors may cause actual results, level of activity, performance or outcomes of such exploration and/or mine development to be materially different from those expressed or implied by such forward-looking statements including, without limitation, whether such discoveries will result in commercially viable quantities of such mineralized materials, the possibility of changes to project parameters as plans continue to be refined, the ability to execute planned exploration and future drilling programs, the need for additional funding to continue exploration and development efforts, changes in general economic, market and business conditions, and those other risks set forth in Wallbridge's most recent annual information form under the heading "Risk Factors" and in its other public filings. Forward-looking statements are not guarantees of future performance and such information is inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and may be beyond the control of Wallbridge. Although Wallbridge has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Consequently, undue reliance should not be placed on such forward-looking statements. In addition, all forward-looking statements in this press release are given as of the date hereof.
Wallbridge disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws. The forward-looking statements contained herein are expressly qualified by this disclaimer.