TORONTO, April 12 /CNW/ - Win-Eldrich Mines Limited ("Win-Eldrich" or the "Company") (TSXV: WEX), owner of the Ashdown molybdenum mine in Denio, Nevada, via its wholly owned US subsidiary, Win-Eldrich Gold Inc., is pleased to announce that molybdenum production increased significantly in the first quarter of 2011.
Due to a major downturn in molybdenum prices in November 2008, production was put on standby. However, as moly prices recovered in 2009 and 2010, the Company developed access to additional reserves (identified in the March 27, 2008 NI 43-101 technical report) more than 150 feet below the existing workings, enabling enhanced production rates.
Since January 1, 2008, the Company has produced 944,974 lbs of molybdenum from the 3,847,930 lbs of total mineral reserves stated in the NI 43-101 report. Before Ashdown was put on standby in late 2008, average quarterly production was roughly 102,000 lbs. per quarter, a rate that was again achieved in the first quarter of fiscal 2011 due to the aforementioned improvement in reserves access.
| Year |
Tons Milled |
Recovered
Grade (%) |
Pounds Mo |
Concentrate (%) |
| 2008 |
15,805 |
1.32 |
416,245 |
50.8 |
| 2009 |
10,912 |
0.98 |
214,928 |
52.9 |
| 2010 |
9,222 |
1.15 |
212,490 |
54.3 |
| 2011 Q1 only |
4,102 |
1.23 |
101,311 |
54.7 |
Perry Muller, CEO of Win-Eldrich, comments: "We've been able to increase both the recovered and concentrate grades over the past 27 months, achieving a level of production last quarter essentially in line with the peak production rates of 2008. Based on the rate of increase of the first quarter production rates, Ashdown is on track to achieve a profitable year. I'd like to thank all the shareholders and employees who believed we could recover from the 2008 moly price decline."
Ashdown Mill Expansion - Also, as part of the recent announcement of the letter of intent with American Mining Corporation for the expansion of the Ashdown Mill, the Comany has begun the process of permitting for processing gold ore in a second 100 ton per day flotation circuit.
Earl Harrison, VP of Operations, comments: "Crews continue to mine the high grade moly zone at the north end of the 4350 level, which exceeds 3% moly grades. Proposed gold development work, scheduled to commence in the first week of May, will include refurbishing 500 feet of existing crosscuts to the east and 100 feet of crosscut to the northeast. At that point, a 150 foot vertical raise will be completed to create access to the drilled gold ore body."
Investor Relations Firm - Effective April 1, 2011, Win-Eldrich has retained San Diego Torrey Hills Capital, Inc. ("Torrey Hills Capital") to act as investor relations consultants to the Company.
Torrey Hills Capital is a leading investor and financial public relations firm specializing in small and micro-cap companies, primarily in the natural resource sector located in Del Mar, California and beneficially owned and controlled by Clifford Mastricola. Torrey Hills Capital will increase awareness about Win-Eldrich through its established relationships with investment professionals, investment advisors, and money managers focused on the microcap market space. This will allow Win-Eldrich to build and maintain an informed investor audience in both the U.S and Canadian marketplace.
Torrey Hills Capital will also develop a profile on Win-Eldrich for coverage on its website, www.babybulls.com, a website developed to showcase and provide exposure for emerging micro-cap companies to an audience of proven micro-cap investors.
Torrey Hills Capital has been engaged for an initial term of 12 months at a monthly fee of US$6,000 with an option to renew for a further 12 month term at the mutual agreement of both parties. In addition, Win-Eldrich has agreed to the granting of options to purchase 125,000 common shares of the Company ("Common Shares", each a "Common Share") at a price of CDN$0.45 per Common Share. The Options shall be subject to the terms of the Company's stock option plan, and will vest in accordance with the provisions therein and the policies of the TSX Venture Exchange.
This news release includes certain forward-looking information and forward-looking statements (collectively "forward looking statements") concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results, including in respect of the increase in production levels at the Ashdown mine. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking statements are inherently uncertain and subject to a variety of risks and uncertainties, including the speculative nature of mineral exploration and development generally and specifically in respect of the interpretation of the geology, continuity, grade and size of mineral deposits, unanticipated operational or technical difficulties, fluctuating commodity prices, competitive risks and the availability of financing, changes in laws or regulations, changes in the financial markets and changes in general economic conditions, as described in more detail in our recent securities filings available at www.sedar.com. Such forward-looking statements are based on a number of assumptions, including but not limited to the level and volatility of the price of molybdenum, the availability of financing, the accuracy of reserve and resource estimates and the assumptions on which those estimates are based and the ability to achieve and maintain certain operational efficiencies. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual events or results may differ materially from those expressed or implied in the forward looking-statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements, except as required by applicable law.
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