NYSE: TC TSX: TCM
DENVER, June 28, 2012 /PRNewswire/ - Thompson Creek Metals Company Inc., a growing, diversified North American mining company (the "Company" or "Thompson Creek"), today reported that it currently expects the previously announced wall slough at the Thompson Creek Mine to have a negative impact on second quarter 2012 production. The Company anticipates production from the Thompson Creek Mine for the second quarter to be approximately 2.5 million pounds of molybdenum. The Company also expects that the slough will have a negative impact on cash costs of production for the Thompson Creek Mine for the quarter. The Company believes that the impact of the slough on total production from the Thompson Creek Mine for 2012 will not be material, as the Company plans to mine higher-grade ore in the second half of the year at Thompson Creek Mine to address the unexpected second quarter shortfall in production. The Company believes that the Thompson Creek Mine will produce approximately 16 million pounds of molybdenum in 2012.
As previously reported, the Company believes the slough resulted from water pressure behind the wall due to seasonal run-off. There were no injuries or equipment damage as a result of the slough. When the slough occurred, the Company believed that the slough material could be removed with appropriate mining methods within a matter of days and that disruption to the mine plan for the quarter would not be significant. Soon afterward, unexpected regulatory requirements required the Company to cease mining in the area of the slough. The Company developed a new access road to other Phase 7 material shortly after the slough occurred and mining continues within Phase 7, working around the slough. The Company has revised its mine plan for Thompson Creek Mine for the remainder of 2012 and, pursuant thereto, has begun to mine higher-grade Phase 7 material.
The Company also anticipates that recovery of molybdenum at the its Endako Mine will not meet the design specifications of the new mill facility during the second quarter of 2012 and believes that the ore grade at the Endako Mine during the quarter will not meet budgeted levels. The Company expects the aforementioned issues will have a negative impact on production and cash costs of production at the Endako Mine for the second quarter. Management has convened a team consisting of outside subject matter experts and internal technical specialists to evaluate these issues and address them as soon as possible.
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