Weatherly issues an operational update this morning and all appears on track. Tsumeb assay results in May will be eagerly awaited. The rumours of a takeover bid on the bulletin boards seem way off the mark. Hopefully the 3 percent increase yesterday is just the start of the journey. The initial delivery of 500 tonnes to Louis Dreyfus is worth nearly $5 million and still 4500 more tonnes due this year worth $42 million.
On Tschudi there is 10g / tonne of Silver or 0.353 ounces per tonne. The metal is currently $40 per ounce. So with 43 million tonnes this equals 15.885 million ounces or $635 million.
RNS Number : 7988E
Weatherly International PLC
13 April 2011
Weatherly International Plc ("Weatherly" or the "Company")
-- First 500 tonne consignment of copper concentrate delivered to Louis Dreyfus
-- Production for remainder of year estimated at 4,500 - 5,000 tonnes
-- Company to issue quarterly production reports commencing July 2011
-- Metallurgical test work on Tschudi ore nearing completion
Weatherly is pleased to announce that its first 500 tonne consignment of copper concentrate has been delivered to the buyer, Louis Dreyfus Commodities, at the port of Walvis Bay. As previously announced mining activities resumed in January, although there have been some delays with the mobilisation of the haulage contractor who only finally commenced trucking late in March.
Fortunately, these transport delays and a prolonged rainy season have had little effect on the overall mine "ramp-up" and there is no change to the previous production forecast of 4,500 - 5,000 tonnes of copper for the remainder of the year. We expect the mine to be profitable in the current quarter and this will be reflected in the Company's annual accounts for the year ending June 30, 2011 to be issued later in the year. We also intend to commence issuing quarterly production reports and the first of these will be published in July 2011.
Tschudi and Tsumeb
At Tschudi (43mt at 0.83% Cu& 10g/tAg), preliminary metallurgical work to determine the optimum process route is reaching its conclusion. Sedgman Engineering is evaluating three process routes as part of the feasibility study. The first route is to heap leach all ore types from the open pit using acid and then process the ore using the SX-EW process to produce an LME-grade copper cathode. The second route, which has the advantage of recovering the silver, would utilise conventional flotation to produce a copper-silver concentrate which would be sold on to smelters. A third alternative which incorporates the retreatment of the old Tsumeb tailings is also being investigated. In this regard, drilling of the Tsumeb tailings has been completed and assay results are expected towards the end of May. This will enable Coffey Mining to complete a fully compliant resource statement.