Frontera Copper Comments On Recent Developments
Affecting Its Primary Supplier Of Sulfuric Acid And Announces Conference Call
To Report On First Quarter 2008 Results
Toronto and Phoenix, AZ - May 5, 2008 -
Frontera Copper Corporation (FCC.TO: TSX, FCC.NT, FCC.NT.A: TSX) today
provided comments on recent developments affecting the primary sulfuric acid
supplier to its Piedras Verdes operation. The supplier has announced a
shutdown of one of its mining operations due to an ongoing labor dispute. The
mine is a primary source of concentrates to a smelter which produces the
sulfuric acid supplied to Piedras Verdes.
Under the terms of an existing long-term acid supply agreement, the supplier
has made every effort to provide the Piedras Verdes operation with a large
portion of its acid requirements since the strike began in July 2007. Furthermore,
based on recent discussions with the supplier, Piedras Verdes believes that
sulfuric acid deliveries will remain at levels comparable to those of recent
months for the foreseeable future.
In a further response to both the high cost and the potential for shortfalls
in acid availability in the spot market, a new ore placement and leaching
strategy has been implemented by the operation, which is intended to maximize
the effectiveness of the acid expected to be received from its primary
supplier. Additional information about this strategy will be provided when
the Company announces its first quarter 2008 results on May 15.
Alan Edwards, CEO and President of Frontera Copper, said, "We are
proactively taking steps to maximize our cash flow in light of the continuing
labor issues at our major supplier of sulfuric acid. We are confident that
these issues will ultimately be resolved and that deliveries of acid to our
operation will be restored to the levels necessary for us to achieve full
production."
Frontera Copper will hold a conference call to report on first quarter 2008
results on Thursday, May 15, at 11:00 am EDT. The conference call will be
hosted by Alan Edwards, President and Chief Executive Officer. He will be
joined by Dave Peat, Vice President and Chief Financial Officer; Tim
Swendseid, Vice President of Engineering and Rod Prokop, Vice President,
Investor Relations.
Those wishing to participate should dial 416-695-9745 or toll free
800-766-6630. A replay of the call will also be available through Thursday,
May 29, by dialing 416-695-5800 or toll free 800-408-3053 and entering passcode
3260517.
For further information, please contact:
Rodney Prokop
Vice President, Investor Relations
(602) 424-5483
ir@fronteracopper.com
Alan Edwards
President and Chief Executive Officer
(602) 424-5488
Information in this news release that
is not current or historical factual information may constitute
forward-looking information or statements within the meaning of applicable
securities laws. Implicit in this information, particularly in respect of
statements as to future operating results and economic performance of the
Company, and resources and reserves at the Piedras Verdes operations, are
assumptions regarding projected revenue and expense, copper prices and mining
costs. These assumptions, although considered reasonable by the Company at the
time of preparation, may prove to be incorrect. Readers are cautioned that
actual results are subject to a number of risks and uncertainties, including
risks relating to general economic conditions and mining operations, and
could differ materially from what is currently expected. The Company
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
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