Mercator Minerals Ltd (TSX:ML) ("Mercator" or the "Company")
announces that it has revised production guidance for its
wholly-owned Mineral Park mine in Arizona, which is now expected to
produce approximately 89 million copper equivalent pounds(1) during
2012. This compares to the prior guidance issued by the Company in
January 2012, which estimated production of 90 to 100 million
copper equivalent pounds(1).
Hard Ore & Mill Throughput
The Company believes the previously disclosed impact of hard ore
on mill throughput has now been resolved. During the first quarter
of 2012, harder than expected ore reduced mill throughput rates,
which resulted in lower than expected copper production. The
updated guidance is based on the concentrator achieving design
throughput levels of 50,000 tons per day ("tpd"), with a hard ore
blend of up to 40% of total mill feed. This threshold has been
determined based on periods of operation with different ratios of
hard ore in the mill feed.
Transition Zone Mineralization
The 2012 mine plan at the Mineral Park mine includes mining
through the transition from supergene enriched copper material into
primary hypogene copper mineralization. Mining of the transition
zone has encountered a lower percentage of higher grade supergene
copper mineralization than expected from the mineral resource
model, resulting in a lower copper grade from this material than
anticipated, while molybdenum grades are unaffected.
Approximately 20 percent of the material expected to be
processed under the 2012 mine plan is comprised of transition zone
ores. The Company believes that, as mining passes through the
transition zone, copper grade and tonnage reconciliation should
better correlate with the block model since the copper grades in
hypogene mineralization both within and below the transition zone
is less subject to the variability associated with secondary
enrichment. Overall, the transition zone represents a small
percentage of the overall mineral resource and the life-of-mine
mineral reserves for the Mineral Park Mine.
The Company is presently evaluating the impact on the five year
mine plan of mining other areas of the deposit that have a
component of similar transitional material.
Updated 2012 Guidance
As a result of the lower head grade currently being mined in the
transition zone, the impact of harder ore and the high oxide
material processed through the mill in the first quarter 2012, the
Company has revised its 2012 production guidance accordingly. As
discussed above, the revised guidance is also based on the 50,000
tpd average throughput for the balance of the year:
Revised 2012 Production Guidance
Q1-2012 Q2 to Q4-2012 Total
Actual Forecast 2012
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Copper in concentrate (million lbs) 9.0 30.0 39.0
Copper cathode (million lbs) 0.9 2.7 3.6
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Total Copper 9.9 32.7 42.6
Molybdenum in concentrate (million lbs) 2.3 8.1 10.4
Silver (000 ounces) 211 335 546
Copper equivalent (1) (million lbs) 20.1 69.5 89.6
Milled tons (millions) 4.4 13.7 18.1
Average copper grade 0.140% 0.137% 0.138%
Average molybdenum grade 0.036% 0.039% 0.039%
Average copper recoveries 72.6%(2) 80.0% 78.3%
Average molybdenum recoveries 70.9%(2) 75.0% 74.1%
(1) All references to copper equivalent production is calculated using a
molybdenum/copper ratio of 4.53, based on the Company's estimated 2012
metals prices.
(2) Recoveries are lower in Q1/12 as a result of processing partially
oxidized ore stockpiles, which stockpiles have been fully depleted.
As noted in a news release dated April 10, 2012, blending of
partially oxidized stockpiled ore through the mill during the first
quarter 2012 reduced metal recoveries. Mining of the partially
oxidized stockpile has since been completed and recoveries have
returned to normal.
About Mercator Minerals Ltd.
Mercator Minerals Ltd., a TSX listed Canadian mining company
with the potential to have one of the fastest growing base metal
profiles in its peer group, is a copper, molybdenum and silver
producer with a diversified portfolio of high quality assets in the
USA and Mexico. Mercator provides investors exposure to current
copper, molybdenum and silver production from the large tonnage
long life Mineral Park Mine in Arizona, as well as mid-term
exposure to potential copper production from its El Pilar deposit
in the State of Sonora in northern Mexico and longer term exposure
of molybdenum and copper through the potential development of the
El Creston deposit also in the State of Sonora in northern
Mexico.
For further information please visit
www.mercatorminerals.com.
On Behalf of the Board of Directors
MERCATOR MINERALS LTD.
D. Bruce McLeod, P.Eng, President and CEO
National Instrument 43-101 Compliance
Unless otherwise indicated, Mercator has prepared the technical
information in this news release ("Technical Information") based on
information contained in the technical reports, news releases,
material change reports and quarterly and annual consolidated
financial statements and management discussion and analysis
(collectively the "Disclosure Documents") available under Mercator
Minerals Ltd.'s company profile on SEDAR at www.sedar.com. Each
Disclosure Document was prepared by or under the supervision of a
qualified person (a "Qualified Person") as defined in National
Instrument 43-101 Standards of Disclosure for Mineral Projects of
the Canadian Securities Administration ("NI 43-101"). Readers are
encouraged to review the full text of the Disclosure Documents
which qualifies the Technical Information. Readers are advised that
mineral resources that are not mineral reserves do not have
demonstrated economic viability. The Disclosure Documents are each
intended to be read as a whole, and sections should not be read or
relied upon out of context. The Technical Information is subject to
the assumptions and qualifications contained in the Disclosure
Documents.
The Technical Information contained in this news release has
been prepared under the supervision of, and its disclosure has been
reviewed by Gary Simmerman, BSC, Mining Eng., FAusIMM, Mercator's
Vice President, Mineral Park, who is a Qualified Person as defined
under NI 43-101.
Forward-Looking Information
This press release contains certain forward-looking information
within the meaning of Canadian securities legislation and
forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995. This information
and these statements, referred to herein as "forward-looking
statements", are not historical facts, are made as of the date of
this press release and include without limitation, statements
regarding discussions of future plans, guidance, projections,
objectives, estimates and forecasts and statements as to
management's expectations with respect to, among other things, the
size, grade and quality of the Company's mineral reserves and
mineral resources, potential mineralization, and possible
extensions of zones. In addition, estimates of mineral reserves and
mineral resources may constitute forward looking statements to the
extent they involve estimates of the mineralization that will be
encountered if a property is developed. These forward-looking
statements involve numerous risks and uncertainties and actual
results may vary. Important factors that may cause actual results
to vary include without limitation, certain transactions, certain
approvals, changes in commodity and power prices, changes in
interest and currency exchange rates, risks inherent in exploration
results, timing and success, inaccurate geological and
metallurgical assumptions (including with respect to the size,
grade and recoverability of mineral reserves and resources),
unanticipated operational difficulties (including failure of plant,
equipment or processes to operate in accordance with
specifications, cost escalation, unavailability of materials,
equipment and third-party contractors, delays in the receipt of
government approvals, industrial disturbances or other job action,
and unanticipated events related to health, safety and
environmental matters), political risk, social unrest, and changes
in general economic conditions or conditions in the financial
markets.
In making the forward-looking statements in this press release,
the Company has applied several material assumptions, including
without limitation, the assumptions that: (1) market fundamentals
will result in sustained copper and molybdenum demand and prices;
(2) the current copper leach operations at Mineral Park remain
viable, operationally and economically; and (3) the milling
operations at Mineral Park will continue to be viable,
operationally and economically. Statements concerning mineral
reserves and mineral resource estimates may also be deemed to
constitute forward-looking statements to the extent that they
involve estimates of the mineralization that may be encountered
during current or future operations. The words "guidance",
"expect", "anticipate", "estimate", "may", "will", "should",
"intend", "believe", "target", "budget," "plan," "projection" and
similar expressions are intended to identify forward-looking
statements. Information concerning mineral reserve and mineral
resource estimates also may be considered forward-looking
statements, as such information constitutes a prediction of what
mineralization might be found to be present if and when a project
is actually developed. The risks and assumptions are described in
more detail in the Company's Annual Information Form, audited
financial statements and MD&A for the year ended December 31,
2011 on the SEDAR website at www.sedar.com. The Company does not
assume the obligation to revise or update these forward-looking
statements after the date of this news release or to revise them to
reflect the occurrence of future unanticipated events, except as
may be required under applicable securities laws.
Contacts: Mercator Minerals Ltd. Bruce McLeod President &
CEO 778.330.1290bmcleod@mercatorminerals.com Mercator Minerals Ltd.
David Jan Head of Investor Relations & Communications
778.330.1295djan@mercatorminerals.com www.mercatorminerals.com