Callinan Mines has received an interim payment of $2,024,731 from HudBay Minerals Inc. This payment represents 75% of an estimate of 6 ? % of the net profits from the 777 Mine in Flin Flon, Manitoba for the quarter ended June 30th, 2009. Callinan Mines receives payments from their net profits interest in the 777 Mine in Flin Flon, Manitoba quarterly. Operated by HudBay Minerals, the mine is expected to produce until 2019.
Ore production at our 777 mine for the second quarter ended Jun/09 increased by 7% compared to the same period in
2008. The improved production is a result of planned productivity improvements at the mine and the addition of credited tonnage from the surface stockpile. The zinc grade was lower by 13%, and the copper grade was lower by 17%, due to the areas we mined during the quarter. The gold grade was 11% lower, and the silver grade was 14% lower, also related to the areas mined in the quarter. Operating costs per tonne of ore in the second quarter were marginally higher as compared to the same period in
2008.
Ore production at the 777 mine for the first quarter increased by 6% compared to the same period in 2008. The improved production is a result of our planned productivity improvements at the mine. The zinc grade was lower by 12%, and the copper grade was higher by 4%, due to the areas we mined during the quarter. The gold grade was 9% lower, and the silver grade was 1% higher, also related to the areas mined in the quarter. Operating costs per tonne of ore in the first quarter were higher by 2% primarily due to increased consumption of propane for mine air heating and higher consumption of cement in paste backfill placement.
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