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| | Wed Jun 11, 2008
ROCA - MAX Molybdenum Mine Production Update
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| | Vancouver, British Columbia: Roca Mines Inc. (ROK: TSX-V) ("Roca" or "the Company") provides the following update on operations and development activities at the MAX Molybdenum Project near Revelstoke, British Columbia.
Summary
- Production of molybdenum (contained in concentrate) for the months of April and May, 2008 was 125,243 lbs and 150,502 lbs, respectively;
- Average mine diluted head grades for April and May, 2008 were 0.712% Mo and 0.732% Mo, respectively, approximately 70% of target;
- Power generation issues impacted production capabilities during the months of April and May, 2008 resulting in overall throughput of approximately 60% of target;
- Throughput and head grades are improving and anticipated to meet monthly production targets of 300,000 lbs molybdenum by the end of June and 600,000 lbs by fall of 2008;
- Breakthrough of the #2 Adit, a key component to the Phase II development of the mine was achieved in May, 2008.
Production Statistics
The following table provides a summary of production statistics for the months of April and May, 2008;
MAX Molybdenum Mine April 2008 May 2008
Molybdenum produced 125,243 lbs 150,502 lbs
Average head grade 0.712% Mo 0.732% Mo
(1.19% MoS2) (1.22% MoS2)
Molybdenum Recovery 93.8% 94.3%
Mill availability 74% 82%
Target throughput 500 tonnes/day 500 tonnes/day
Average daily throughput 300 tonnes 335 tonnes
(60% of target) (67% of target)
While mine and mill performance are steadily improving, production goals were not reached during April and May, 2008. Milling and mining throughput were impacted by power generation issues caused by electronic controls on the three primary gensets. The Company is making alterations to these controls to reduce future downtime. Equipment in the mill has also required repair during the period but is now remedied and continuous mill throughput rates are expected to be met by the end of June.
Ore production for the months of April and May came primarily from the uppermost stopes in the mine plan. Initial stope design was based on drilling and modeling of the high-grade zone without the aid of underground exposures to assess geological controls on the mineralization. As a result, head grades were diluted during the period due to larger volumes being mined from these stopes. The Company anticipates that head grades will improve as geological experience with the system is gained through mapping and as an established grade control program aims to minimize dilution.
Management is encouraged by the mine's ability to achieve targeted daily molybdenum production rates when all operations were functioning as planned. Improvement of the operation's ability to achieve the targeted throughput rates and head grade on a continuous basis remains a priority with targeted monthly production rates of 300,000 lbs by the end of June and 600,000 lbs by fall 2008 being anticipated.
Phase II Expansion and Development
Adit #2 development was completed in early May 2008, and work is underway to establish an upgraded ventilation system for the mine. Once connected, the underground mine will be capable of achieving its Phase II ventilation requirements.
The Company is constructing foundations in preparation for a new mill base for its third ball mill. The installation of this mill will allow for greater production flexibility and will provide for a nominal capacity of at least 1,000 tonnes per day. The new equipment is to be commissioned by the fall of 2008. A concentrate drying system is now substantially installed and, once operational, will assist in controlling moisture content in the molybdenite concentrates produced.
The permitted Phase I mine plan for MAX will focus on the deposit's high-grade zone containing 280,000 measured and indicated tonnes grading 1.95% MoS2 (refer to T.N. Macauley's 43-101 compliant technical report dated September 2004 available via SEDAR). Molybdenum oxide currently trades in the US$33-34/lb. range.
ROCA MINES INC.
"Scott Broughton"
Scott E. Broughton, P.Eng. -- President & CEO
For further information contact:
Doug Fosbrooke
Investor Relations
Tel: 604-684-2900
Fax: 604-684-2902
Email: [email protected]
Web: www.rocamines.com |
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