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Arehada Mining Reports Year End Results
Wed Apr 1, 6:23 PM
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TORONTO, ONTARIO--(Marketwire - April 1, 2009) - Arehada Mining Limited (TSX: AHD.TO) today announced financial results and operational highlights for the year ended December 31, 2008.
Total revenue for the year was $21,119,286 with a loss after tax of $1,141,897 or $0.007 per share, compared to revenue of $19,884,010, net income of $4,553,534 and $0.034 per share for the year ended December 31, 2007. The loss incurred in this year was a result of the significant drop of the metal prices, a 20 day shutdown due to the Beijing Olympics and a shutdown of the mining operations from November 11, 2008 for the remainder of the year. The total ore milled during the year was 379,084 tonnes compared with 408,598 tonnes in 2007. The Company's mining operations commenced in July 2006.
During the year, Arehada conducted mining operations at approximately 1,516 tonnes per day and operated 250 days. The mining rate is higher than the 1,340 tonnes per day in 2007, however Arehada operated for 305 days in 2007. During the year, head grades of approximately 1.29% zinc and 1.09% lead resulted in an 85% and 88% recovery factor respectively, while silver head grades of 45 grammes per tonne showed a 74% recovery factor.
The year's revenue resulted from the sale of 3,089 tonnes of zinc concentrate, 3,512 tonnes of lead concentrate and 440,148 ounces of silver, compared to 3,370 tonnes of zinc concentrate, 3,836 tonnes of lead concentrate and 429,284 ounces of silver last year. In addition, the sale of 4,226 tonnes of zinc calcine and 3,075 tonnes of sulphuric acid from the newly operational zinc plant also contributed to the revenue in the year.
During the year realized prices averaged US$.62 per lb for zinc, US$.98 per lb for lead and US$12.10 per ounce for silver. For the same period last year the realized prices averaged US $1.01 per lb for zinc, US$.84 per pound for lead and US$9.45 per ounce of silver.
We have seen a significant improvement of grades during 2008. We are also anticipating production levels at or slightly above the projected rate of 450,000 tonnes per annum. Based on encouraging development drilling to date, plans are being finalized to increase mining and milling capacity to 3,000 tonnes per day pending favourable market conditions. This was originally targeted towards the end of 2008 but will be delayed as we continue to fine tune our mining plans and due to unfavourable market conditions. The Company will focus on high grade ore and reduce tonnage per day until market conditions improve.
We were pleased to report that the Company's mining operations which had been shut down since November 11, 2008 have restarted operations, as commodity prices have improved and should be producing concentrate by the end of April.
About Arehada Mining
Arehada Mining Limited is engaged in the exploration, development, extraction and production of zinc, lead and silver in Dongwuzhumuqinqi, located in Inner Mongolia, China. Arehada produces zinc and lead concentrates, which are then sold to smelters in China.
Arehada has completed construction of a zinc processing plant which is designed to produce zinc calcine and sulphuric acid. The plant is currently shut due to uneconomic commodity prices.
Forward Looking Information
The above contains forward looking information that is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, extent of resources actually contained in mineral deposits, actual recoveries achieved in processing ore, technological change, change to regulations affecting the mining industry, risks associated with mining operations in China, environmental and safety regulations risks, and risk associated with failure to obtain required regulatory or third party consent. Generally, forward looking information can be identified by the use of forward looking terminology such as "plans", "expects", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information in this release include statements regarding planned resumption of our operation, anticipated increase in production level, increase in mining and milling capacity, production schedule and plan to target higher grade ore. Although we believe the expectations reflected in our forward looking information are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. Readers should not place undue reliance on forward looking information.
Contacts
Graham Warren
Arehada Mining Limited
Chief Financial Officer
416-350-5133
g.warren@arehadamining.com
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