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Robinson is an open pit copper and gold mine located in White Pine County, Nevada approximately 11 km west of Ely. The mine is currently operating at full production and is generating positive cash flow. It produces copper concentrate and by product gold and some molybdenum. The concentrate is sold to a number of international and domestic smelters and traders. History: The Robinson Mining District was founded in 1867 when several underground gold and silver mining operations where established, by the early 1900's the first copper production commenced. From this time Kennecott Copper Corporation operated both underground and open pit operations and associated processing facilities. Production reported from 1908 to 1978 was more than 4 billion pounds of copper and 2.7 million ounces of gold. Magma Copper acquired the properties in 1991. Magma was subsequently purchased by BHP Ltd (" BHP Copper") in 1997. The Robinson Mine as it exists today was built in 1994 through 1996 for approximately $480 million and ran until operations were suspended by BHP Copper in 1999 due to low commodity prices (60¢ per pound copper and $260 per ounce gold). . Quadra purchased the mine from BHP Billiton in April 2004, and immediately recommenced operations, reaching full production in October 2004 more than two months ahead of schedule and following capital upgrades to the process plant facility. The mine mobile equipment had been reassigned to another BHP Billiton project and was replaced with new equipment. The current mine infrastructure consists three large open pits; Liberty (previously mined out by BHP Copper), Tripp-Veteran, and Ruth, a conventional process plant with SAG and ball mill grinding followed by floatation. A molybdenum recovery circuit was constructed by Quadra and entered operations in December 2005. Robinson has operated continuously since 2005 producing 121 to 126 million pounds per year of copper. In 2006, mining transitioned from the Tripp to the Veteran pit and the mine produced 121.4 million pounds of copper, 75,074 ounces of gold and 260,000 pounds of molybdenum. In 2007, the mine produced 131.9 million pounds of copper and approximately 108,000 ounces of gold. The reserves at Robinson as of January 1st 2008 were 103 Mt containing 0.68% copper and 0.23 g/t gold. The detailed resources and reserves are described below. Health and Safety: Our number one priority within Quadra is the safety of our employees. We strive to operate with a top tier safety record. Currently the Total Recordable Injury Rate ("TRIR") at Robinson is 0.86, well below the National Average industry rate of 3.27. There have been no Lost Time Incidents during 2008. Production Results: Robinson is a skarn deposit. Such deposits typically show variable grade, mineralogy and recovery over comparatively short distances within the ore body. As a result, the production performance of the Mine varies significantly from quarter on quarter.
*Last 12 months – to June 30, 2008 Robinson Outlook: Copper and gold production for 2008 is expected to be 150 million pounds of copper and 115,000 ounces of gold respectively. As previously noted, the complex nature of the ore-body will result in quarter to quarter fluctuations in copper and gold production. While the Company continues to evaluate methods of increasing production of molybdenum, it does not plan to provide guidance for 2008 due to the variability of head grade and recovery. Mining will continue in the Veteran pit until 2010, when the operation is expected to transition to the Ruth pit for the balance of the mine life. Recenty hydrological work has identified that additional permitting will be required in order to dispose of the excess water from the pit that can not be used in the processing plant. The timing of the permitting process is uncertain and could delay the development of the Ruth pit. Additional studies are underway or planned at the Robinson Mine to evaluate the exploration potential of the property package. To date exploration drilling has focused on the potential for additional reserves in the Veteran pit and studies continue to assess the economics of expanding this pit beyond the current mine plan. This expansion could become an alternate mine plan in order to minimize the impact of any delay in the Ruth pit development. The Robinson Mine is Quadra's cornerstone operation and the Company continues to optimize other opportunities at the property. Mineral Resource and Mineral Reserve Estimates: Robinson Mine Copper and Gold Mineral Resource The Robinson Mine resource is as of January 1, 2008, which adheres to the 2005 Classification of Mineral Resources and Mineral Reserves of the Canadian Institute of Mining, Metallurgy and Petroleum, and, in accordance with the standards set out in NI 43-101, is classified as Measured, Indicated, or Inferred, based on distance to the nearest copper sample and the number of copper composites. The qualified persons responsible for the mineral resource estimates are Scott Hardy, P. Eng., Manager, Technical Services of Quadra Mining, and Steve Ristorcelli, P. Geo. of Mine Development Associates, Inc. Reno, Nevada.
Robinson Mine Copper and Gold Mineral Reserves: The following table shows the proven and probable mineral reserves for the Robinson Mine as of January 1, 2008 (metric units except for gold troy ounces). The reserves were prepared under the supervision of Scott Hardy, P.Eng., and Juris Ore, both of Quadra Mining Ltd. Mr. Hardy is the designated Qualified Person as defined by National Instrument 43-101. Changes from the prior year's proven and probable mineral reserves relate primarily to the Veteran Pit and include ore and waste mined in 2007, changes to pit designs, adjustments arising from the complex mineralogy, and re-estimation of the deposit resources incorporating 2006-2007 development drilling. Revised Reserve Table, as of January 2008:
Note: Mineral reserves are based on a variable economic cutoff grade, or net value calculation, which includes all operating costs. This value is converted to recoverable copper pounds per ton cutoff grade and applied to resource material remaining inside the pit designs as of January 1, 2008. Resource materials classified as "Measured" and "Indicated" within the pit and above the cutoff are called "Proven" and "Probable" reserves. Certain materials were reduced from the resource tonnage by 18% due to the possibility of unfavorable metallurgical performance. The reserves are based on a variable copper prices starting at $2.50 per pound in 2008 decreasing to $1.75 by the end of mine life.
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