VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 01/24/14 -- Imperial Metals Corporation (TSX: III) reports its annual base and precious metals production(1) from Mount Polley, Huckleberry and Sterling mines was 59.1 million pounds copper, 54,456 ounces gold and 243,013 ounces silver. Copper and gold production were within 1% of planned, and silver production was 24% above the forecast.
Forecast production(1)(2) for 2014 from Mount Polley, Huckleberry and Sterling operations is 65.0 million pounds copper, 56,700 ounces gold and 220,000 ounces silver.
---------------------------------------------------------------------- Annual Production(1) Planned 2014(2) 2013 2012 ---------------------------------------------------------------------- Copper - lbs 65,000,000 59,107,574 51,345,600 Gold - oz 56,700 54,456 57,138 Silver - oz 220,000 243,013 211,995 ---------------------------------------------------------------------- Quarter Production(1) 4Q 2013 4Q 2012 ---------------------------------------------------------------------- Copper - lbs 14,426,595 13,906,525 Gold - oz 11,857 14,449 Silver - oz 58,075 56,797 ---------------------------------------------------------------------- (1) 100% production from Mount Polley & Sterling mines + 50% production from Huckleberry mine (2) Cautionary Note
Forecast production(2) from the Red Chris mine, scheduled to begin production in the final quarter of 2014, is 20.0 million pounds copper and 10,000 ounces gold.
Mount Polley Mine
Higher copper grade and improved recovery in 2013 resulted in 38.5 million pounds copper production, up 14% from 33.79 million pounds in 2012. Gold production was down due to lower gold grade being treated in 2013 compared to 2012. Both copper and gold recoveries were higher in 2013 as a result of the ore treated being less oxidized.
Forecast production(2) for 2014 from Mount Polley is 44.0 million pounds copper, 47,000 ounces gold and 120,000 ounces silver.
---------------------------------------------------------------------- Annual Production 2013 2012 ---------------------------------------------------------------------- Ore milled - tonnes 7,956,738 8,121,878 Ore milled per calendar day - tonnes 21,799 22,191 Grade % - copper 0.295 0.280 Grade g/t - gold 0.263 0.304 Recovery % - copper 74.46 67.40 Recovery % - gold 68.09 65.70 Copper - lbs 38,501,165 33,789,600 Gold - oz 45,823 52,236 Silver - oz 123,999 116,101 ----------------------------------------------------------------------
Huckleberry Mine
Increase in copper grade and recovery in 2013 resulted in 41.2 million pounds copper production, up 17% from 35.1 million pounds in 2012.
Imperial's share(3) of Huckleberry's 2014 forecast production(2) is 21.0 million pounds copper and 100,000 ounces silver.
---------------------------------------------------------------------- Annual Production(i) 2013 2012 ---------------------------------------------------------------------- Ore milled - tonnes 5,895,193 5,876,900 Ore milled per calendar day - tonnes 16,151 16,057 Grade % - Copper 0.346 0.301 Recovery % - Copper 91.6 90.0 Copper - lbs 41,212,818 35,112,000 Gold - oz 2,983 2,578 Silver - oz 238,028 191,787 ---------------------------------------------------------------------- (i) production stated 100% - Imperial's allocation is 50%(3)
Sterling Mine
Sterling shipped 7,431 ounces gold in 2013. Forecast production(2) for 2014 from Sterling is 8,000 ounces gold.
---------------------------------------------------------------------- Annual Production 2013 2012 ---------------------------------------------------------------------- Ore Stacked - tons 160,789 77,944 Gold Grade - oz/ton 0.083 0.082 Gold ounces - added to heap 13,348 6,393 Gold ounces - in-process & poured 7,142 3,613 Gold shipped - ounces 7,431 2,852 ----------------------------------------------------------------------
Credit Facility
Imperial's unsecured line of credit facility ("LOC") with Edco Capital Corporation, a company controlled by Mr. Edwards, a significant shareholder of the Company, has been increased from a maximum of $200 million to $225 million.
A commitment fee of $125,000 is payable in respect of the increase in the LOC. All others terms and conditions of the LOC remain unchanged. The LOC drawdown date has been extended from January 31, 2014 until March 31, 2014. It bears interest at 7% per annum and is repayable by January 1, 2015. Payments pursuant to the LOC constitute a related party transaction within the meaning of Multilateral Instrument 61-101. Management considers the LOC to be advantageous as it provides additional timing and flexibility for arranging senior financing for the Red Chris project. Management also considers the LOC terms and conditions are reasonable, in the context of the market. The LOC was reviewed and approved by the independent members of the Company's Board of Directors. The LOC is exempt from the formal valuation and minority interest approval requirements of Multilateral Instrument 61-101 as it represents less than 25% of the Company's market capitalization. The material change report in relation to this transaction will be filed less than 21 days before closing as the Company completed this transaction on January 22, 2014 as all necessary approvals had been received and the Company wished to complete the transaction as soon as commercially feasible after such approvals were obtained.
About Imperial
Imperial is an exploration, mine development and operating company based in Vancouver, British Columbia. The Company operates the Mount Polley copper/gold mine in British Columbia and the Sterling gold mine in Nevada. Imperial has 50% interest in the Huckleberry copper mine, and 50% interest in the Ruddock Creek lead/zinc property, both in British Columbia. The Company is in development of its wholly owned Red Chris copper/gold property in British Columbia.
Cautionary Note Regarding "Forward-Looking Information"
This press release contains "forward-looking information" or "forward-looking statements" within the meaning of Canadian and United States Securities Laws, which we will refer to as "forward-looking information". Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking information. When we discuss mine plans; costs and timing of current and proposed exploration; development; production and marketing; capital expenditures; construction of transmission lines; cash flow; working capital requirements and the requirement for additional capital; operations; revenue; margins and earnings; future prices of copper and gold; future foreign currency exchange rates; future accounting changes; future prices for marketable securities; future resolution of contingent liabilities; receipt of permits; or other matters that have not yet occurred, we are making statements considered to be forward-looking information or forward-looking statements under Canadian and United States Securities Laws. We refer to them in this press release as forward-looking information.
The forward-looking information in this press release may include words and phrases about the future, such as: plan, expect, forecast, intend, anticipate, estimate, budget, scheduled, believe, may, could, would, might or will. We can give no assurance the forward-looking information will prove to be accurate. It is based on a number of assumptions management believes to be reasonable, including but not limited to: the continued operation of the Company's mining operations, no material adverse change in the market price of commodities or exchange rates, that the mining operations will operate and the mining projects will be completed in accordance with their estimates and achieve stated production outcomes and such other assumptions and factors as set out herein. It is also subject to risks associated with our business, including but not limited to: risks inherent in the mining and metals business; commodity price fluctuations and hedging; competition for mining properties; sale of products and future market access; mineral reserves and recovery estimates; currency fluctuations; interest rate risks; financing risks; regulatory and permitting risks; environmental risks; joint venture risks; foreign activity risks; legal proceedings; and other risks that are set out in the Company's current Management's Discussion & Analysis.
If our assumptions prove to be incorrect or risks materialize, our actual results and events may vary materially from what we currently expect as provided in this press release. We recommend you review the Company's current Management's Discussion & Analysis, which includes discussion of material risks that could cause actual results to differ materially from our current expectations. Forward-looking information is designed to help you understand management's current views of our near and longer term prospects, and it may not be appropriate for other purposes. We will not necessarily update this information unless we are required to by securities laws.
Contacts:
Imperial Metals Corporation
Brian Kynoch
President
604.669.8959
Imperial Metals Corporation
Andre Deepwell
Chief Financial Officer
604.488.2666
Imperial Metals Corporation
Sabine Goetz
Shareholder Communications
604.488.2657
investor@imperialmetals.com
www.imperialmetals.com
