Minto Q4 2019 Production Overview

RNS Number : 2152Z

Pembridge Resources plc

09 January 2020

 

Pembridge Resources plc (LSE:PERE) 

9 January 2020

Minto Q4 2019 Production Overview

57% Month-on-Month Increase in December Copper Production

Significant Improvement in Head Grade

London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company") is pleased to provide an update from Minto Explorations Ltd ("Minto") and the operations at the Minto mine following the recommencement of operations as announced on 15 October 2019. The following table provides a monthly overview of production in 2019.

	Ore processed	Head grade	Copper recovery	Concentrate produced1,2	Copper in Concentrate2,3
	dmt	% Cu	%	dmt	dmt
October	33,541	1.90%	91.6%	1,661	583
November	31,575	2.13%	95.6%	1,839	644
December	38,890	2.69%	96.9%	2,919	1,014
2019 Total	104,005	2.27%	95.1%	6,436	2,247

1.   Previously announced figures may differ due to subsequent reconciliation

2.   Subject to rounding errors

3.   Copper in concentrate figures do not include gold and silver credits

Highlights

-     December copper in concentrate production up by 57% month-on-month

-     Milling operations currently operating on a 2-weeks-on, 2-weeks-off schedule as mining operations continue developing underground, preparing the mine for an increased mining rate later in 2020

-     US$7.1M has already been received in payments for production in October and November, pursuant to the offtake agreement between Sumitomo Canada Limited ("Sumitomo") and Minto dated 22 July 2019 (the "Offtake Agreement"), where Minto receives a 90% provisional payment ("Advanced Payment") for the copper concentrate produced at each month end.

-     The Advanced Payment for production in December 2019 is expected to be a new high, since recommencement of operations, due to the increased copper production and a stronger copper and gold price.

-     2019 production was all mined from the Minto East mining zone. Mining of this zone is expected to be completed in Q2 2020, at which point production will continue from the next mining zone, Copper Keel.

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

"I am very proud of what the Minto team has achieved during 2019. Following the restart of operations in October we have seen improved copper production levels each month. I am delighted to report that December's copper in concentrate production figures showed 57% increase on the previous month due to improvements in the head grade.

Minto has already received in total over US$7M from Sumitomo under our offtake arrangement, with a further payment for December's record production due imminently. All of this has been achieved with the plant still running on a two-weeks-on, two-weeks-off basis to ensure efficiencies during the ramp-up phase. Accordingly, we expect the revenue stream to continue to improve throughout 2020, due to increases in the production rate, as well as the increasingly positive outlook for copper prices, which have already gained circa 10% since mining operations recommenced."

ENDS

NOTES TO EDITORS

About Pembridge Resources plc

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. Minto, a subsidiary of Pembridge, is a British Columbia incorporated business operating the Minto mine in Yukon, Canada.

About Minto Explorations Limited

Minto 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 Minto 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

Paul Fenby, Chief Financial Officer

Thomas Horton, Vice President Corporate Development

Brandon Hill Capital - United Kingdom:                                       [phone]

Jonathan Evans

SI Capital - United Kingdom:                                                          [phone]

Nick Emerson

 

END

 

 

DRLKKFBBFBKDDDK