Minto Production for 2022

RNS Number : 8830Q

Pembridge Resources plc

23 February 2023

 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS AMENDED BY REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

23 February 2023

Minto Metals Reports Copper Production of 28.9 Million Pounds for 2022, Provides Production Guidance for 2023 and Announces Changes to Board of Directors

London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company") is pleased to announce that Minto Metals Corp ("Minto") has released its production results for the 12-month period ended December 31st, 2022.

Highlights

· Payable copper production for 2022 of 28.9 million pounds, in line with expected production of between 28.0 - 31.0 million pounds and a 12.6% increase over 2021

· Copper sales increased in the first, second and third quarters of 2022, compared to the same periods in 2021.

· Minto navigated through a significant water event during spring freshet, which was caused by a snow pack that was 417% above normal, with no environmental impact. More than 1,400,000m³ of water was discharged from site, which was more than double the volume discharged over the last 7 years combined:

o  Water Treatment Plant enhancements were made, creating the ability to discharge water through the winter months for the first time in Minto's history; and

o  Operations at the mill were suspended for a total of 8 weeks due to this water event, and tonnes milled were lower than expected as a result.

· New tele-remote scooptram (controlled from surface) began operating underground in between shift changes moving ore/waste.

· Equipment condition monitoring was operational and communicates in real-time using new fiber network installed underground, key operating data/information from onboard the equipment.

· 2 new ore lenses were identified, with plans to build on these in 2023.

Production Results YE 2022	YE 2022		YE 2021		% Change
Ore Tonnes Produced	904,066		866,805		4.30%
Ore Tonnes Milled	878,380		903,498		-2.80%
Head Grade %	1.58%		1.40%		12.90%
Payable Copper (million pounds)	28.86		25.64		12.60%
Gold (ounces) (1)	12,168		11,783		3.30%
Silver (ounces) (1)	135,878		135,354		0.40%

1. Under the Wheaton Precious Metals agreement, Minto receives 65% of the adjusted Gold price up to a maximum of US$1,250 for 2 years and then 50% up to a maximum of US$1,000 thereafter (12 Months remaining on initial term). Silver receipts are at the lesser of the prevailing market price and US $4.35/oz with 1% annual escalator.

Changes to Board of Directors

Minto also announced that Edie Hofmeister will be stepping down as a Director, and Greg McKnight will be stepping down as a Director and Chairman of Minto's Board of Directors. Ms. Hofmeister's departure is effective February 28, 2023 and Mr. McKnight's departure is effective March 15, 2023.

Replacing Mr. McKnight as Chairman of the Board is Joe Phillips who has served as a Director on Minto's Board since December 2021. Mr. Phillips has over 45 years of experience in the construction, commissioning and operation of mining projects in 13 countries in 5 continents. Over his career he has directed the construction, commissioning and operation of 11 plants and mining operations, all of which met or exceeded their designed capacities.

An executive search is underway and a notice of appointment will be announced as soon as qualified replacements are secured.

2023 Outlook Guidance

Minto has provided guidance for 2023, the main points of which are:

· Plan to operate the mill at an average throughput of 3900 tonnes/day as the ore production continues to climb closer to the mill's ultimate permitted capacity of 4,200 tonnes/day

· Copper production of 31-34 million pounds

· C1 Cash cost (USD/lb) of $2.80-3.00

· Capital expenditure of CAD 46 million

· Exploration cost of CAD 7-9 million

The press release from Minto can be found here

 http://www.rns-pdf.londonstockexchange.com/rns/8830Q_1-2023-2-23.pdf

Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge said:

"This is positive news of Minto's production results in 2022 and we we are hopeful of further growth and good results in 2023."

Cautionary Statement

This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company, or management, expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, the Company's ability to predict or counteract the potential impact of COVID-19 coronavirus on factors relevant to the Company's business, failure to identify additional mineral resources, failure to convert estimated mineral resources to reserves with more advanced studies, the inability to eventually complete a feasibility study which could support a production decision, the preliminary nature of metallurgical test results may not be representative of the deposit as a whole, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

ENDS

NOTES TO EDITORS

Pembridge is a mining company that is listed on the standard segment of the Official List of the FCA and trading on the main market for listed securities of London Stock Exchange plc. Pembridge has an investment in Minto Metals Corp, a British Columbia incorporated business listed on the TSX Venture Exchange under the symbol "MNTO" that operates the Minto mine in Yukon, Canada.

About Minto Metals Corp

Minto Metals Corp operates the underground copper-gold-silver mine located in central Yukon, approximately 240 kilometres north of the capital Whitehorse along the Klondike Highway. In excess of US$350 million of capital expenditure has been invested into Minto operations since site construction began in 2006. The Minto mine was in continuous production between 2007 and 2018, when the mine was placed onto temporary care and maintenance. Pembridge acquired the Minto mine from Capstone Mining Corporation in June 2019 and restarted operations in October 2019.

Enquiries:

Pembridge Resources plc:   [phone]

Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board

David James, Chief Financial Officer

Tavira Financial Ltd:       [phone]

Jonathan Evans

 

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