TSX: ML) ("Mercator" or the "Company") today announced an updated Mineral Resource and Mineral Reserve estimate (the "June 2013 Estimate") for the Company's wholly-owned Mineral Park mine in Arizona ("Mineral Park")." data-reactid="11"VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 26, 2013) - Mercator Minerals Ltd (TSX: ML) ("Mercator" or the "Company") today announced an updated Mineral Resource and Mineral Reserve estimate (the "June 2013 Estimate") for the Company's wholly-owned Mineral Park mine in Arizona ("Mineral Park").
The June 2013 Estimate updates the previously published 2006 mineral resource and mineral reserve statement contained in the Technical Report - Preliminary Feasibility Study on Phase I & Phase II Copper - Moly Milling Expansion, Mineral Park Mine, Mohave County, Arizona ("2006 Study") to better reflect actual mined grades, especially in the transition zone from supergene to hypogene mineralization.
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, 2012 on the SEDAR website at
Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution.
These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.
The new mineral reserve estimate also incorporates updated operating costs, metal recoveries and metal prices of $2.60 per pound for copper and $9.65 per pound for molybdenum.
The new mineral reserve results in an estimated mine life of 20 years."The updated mineral reserve and resource estimate confirms Mineral Park as a long life, large tonnage mine and provides more accuracy and predictability in our long term and short term mine planning," stated D. "Given current metal prices, we have also designed an optimized five-year pit, which correlates with our production guidance, and will maximize cash flows until the debt repayment and copper hedging programs are complete."Five-year Mineral Reserve The projected production for the 67-month period of June 1, 2013 to December 31, 2018 (see Table 1 below) totals 102 million tons grading 0.15% copper and 0.038% molybdenum.
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." data-reactid="55"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 updated mineral reserve estimate reconciles to within 1% of contained metal in areas mined in 2012.
The differences between the June 2013 mineral reserve estimate of 369 million tons grading 0.12% copper and 0.037% molybdenum and the mineral reserve reported in the Company's 2012 Annual Information Form (brought forward from the 2006 Study) of 389 million tons grading 0.138% copper and 0.040% molybdenum can primarily be attributed to: (1) mining of higher grade supergene material over the past six years, (2) lower copper grade in the transition zone, and (3) interpolation using a hybrid dataset (incorporating both drillholes and blastholes) to model the new mineral resource.
Mercator Minerals Ltd., a TSX listed Canadian mining company with one of the fastest growing base metal profiles in its peer group, is a leading copper, molybdenum and silver producer with a diversified portfolio of high quality operations and projects in the USA and Mexico.
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.
Mineral Resource and Mineral Reserve Estimation " data-reactid="56"Mineral Resource and Mineral Reserve Estimation The database used to estimate the mineral resources and mineral reserves for Mineral Park was prepared under the supervision of Gary Simmerman, BSC, Mining Eng., FAus IMM. Simmerman, the sampling method and the current density of drill holes is appropriate for the nature of mineralization at Mineral Park and the database is acceptable for the mineral resource and mineral reserve calculations for which he is responsible, and the block model, mineral resource estimate and mineral resource classification reported herein are adequate for feasibility level evaluations of Mineral Park, and meet the "reasonable prospects for economic extraction" conditions of NI 43-101.