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News Releases - Wednesday, June 13, 2007
Primary Metals Reports Improvements at Panasqueira Tungsten Mine
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Primary Metals Inc. (the "Company") (TSXV: PMI) is pleased to report
initial improvements at its Panasqueira tungsten mine as a result of
the recent introduction of plans to increase profitability. Operations
have been proceeding well and are starting to show results, with May
figures showing an overall increase in tungsten concentrate production
resulting from a modest increase in the mined ore grade and slightly
improved mining rates.
Tungsten production for the month of May increased to 9,708 MTUs of WO3
compared to an average rate of 9,051 MTUs per month for the four prior
months, a 7% improvement (1 MTU = 1 metric tonne unit or 10 kilograms).
The mined ore grade during May was higher, averaging 0.18% WO3
(tungsten trioxide), an improvement over the low of 0.16% WO3
experienced in February and the average grade of 0.17% for the prior
four months. Mining rate was also slightly higher at 66,775 tonnes for
the month compared to an average rate of 65,371 tonnes for the prior
months.
"These improvements are considered a first step in the direction of
increasing profitability and, although small, are very encouraging,"
said Lewis Black, Chairman of the Company. "We believe that our mine
plans are based on a solid foundation and will lead to a long and
healthy life for Panasqueira. The expenditures that we have made on
equipment and refurbishment of the mine are starting to show results
and we are optimistic about continued improvements."
The mine has also made reductions in labour costs since the beginning
of this year and the work force now stands at 281 compared to 315
personnel at the end of 2006 as a result of the reduced number of
contract workers. This has been accomplished as a result of improved
efficiencies of the mine equipment and a reduction in mine development
activities following the completion of the new D9 underground ramp
between mine Levels 2 and 3 to access new tungsten zones. The required
ongoing mine development work will continue at a reduced rate and the
dilution effects of the lower grade development ore are expected to be
similarly reduced.
A full fleet of low profile underground mining equipment has recently
been introduced in the mine for use on Level 3, the main mining level.
This is expected to reduce stoping height wherever possible from a
typical historical level of 2.2 metres to around 2.0 metres by year
end, thereby reducing the amount of dilution caused by mining excess
waste rock. The overall effect is expected to result in an improvement
in mined ore grade and a reduction in operating costs.
Recently estimated Proven and Probable Reserves and Indicated Resources
total 5,130,000 tonnes with a grade of 0.261% WO3 and containing
1,340,000 MTUs of tungsten trioxide. In addition, there are a further
1.8 million tonnes of Inferred Resources with a grade of 0.224% WO3, as
well as additional exploration potential. These independent estimates
are compliant with NI 43-101. (See News Release dated March 29, 2007)
Tungsten prices are currently US$255 per MTU.
About Primary Metals Inc.
Through Beralt, the Company owns a 100 percent interest in the
Panasqueira tungsten mine in Portugal, which is currently producing
some 100,000 MTUs of tungsten trioxide in concentrates per annum (One
MTU = 1 Metric Tonne Unit or 10 kilograms). Tungsten is currently
trading at around US$260 per MTU. The Panasqueira mine has a long
history of production of high-quality wolframite concentrates and is
the dominant producer of high-grade tungsten concentrates outside
China.
Further information is available at www.sedar.com and on the
Company's website at www.primarymetals.ca.
On Behalf of the Board of Directors,
"James Robertson"
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James Robertson, P. Eng., Director
For further information contact:
Vancouver Office:
James Robertson
Phone: 604.669.8988
Email: info@primarymetals.ca
Website: www.primarymetals.ca
Investor Relations:
Jamie Mathers, Ascenta Capital Partners
Phone: 604.684.4743 extension 236
Toll free: 1.866.684.4743
Email: jamie@ascentacapital.com
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release.
James Robertson, P. Eng., is a Qualified Person for Primary and has
reviewed and approved the information contained in this News Release.
Certain of the statements made and information contained herein is
"forward-looking information" within the meaning of the Ontario
Securities Act or "forward-looking statements" within the meaning of
Section 21E of the Securities Exchange Act of 1934 of the United
States. Forward-looking statements are
subject to a variety of risks
and uncertainties which could cause actual events or results to differ
from those reflected in the forward-looking statements, including,
without limitation, the company's expectations as to the completion of
third party undertakings, the results of planned work programs,
potential mineralization, resources, reserves, mine production levels
and future tungsten prices. Such statements are based on certain
assumptions, including continued demand for tungsten, availability of
capital, equipment and personnel to carry out and complete the planned
work programs and accuracy within a reasonable range of reported
exploration and development results, and involve various risks and
uncertainties, including global economic factors, future commodity
prices, lack of availability of equipment or personnel, and results of
exploration and development. There can be no assurance that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Other important factors that could cause actual results to
differ materially from the Company's expectations are disclosed under
the heading "Risk Factors" and elsewhere in the Company's documents
filed from time-to-time with regulatory authorities and on
www.sedar.com
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Copyright (c) 2007 PRIMARY METALS INC. (PMI) All rights reserved. For
more information visit our website at http://www.primarymetalsinc.ca/
or send mailto:info@primarymetalsinc.ca
Message sent on Wed Jun 13, 2007 at 11:53:04 AM Pacific Time
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