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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 on average, 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 and production for 2008 was a historical record for the mine for both copper and gold. Robinson produced 159.7 million pounds of copper in 2008 and 137,628 ounces of gold. The reserves at Robinson as of January 1st 2009 were 121 Mt containing 0.54% 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 0.8, well below the National Average industry rate of 3.4. 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.
Copper and gold production for 2009 is expected to be 120-125 million pounds of copper and 90,000 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 2009 due to the variability of head grade and recovery. In 2010 mining will continue in Veteran Pit and advance into areas of the Ruth Pit. While evaluation drilling has been carried out in the past, the Company now expects the ore at higher elevations in Ruth to show significant local variability, and as noted, is currently increasing the drill density across this material. In addition to the chalcocite coated pyrite, there is an intermixing of supergene and hypogene ore, which the Company has had difficulty processing when previously encountered. As with each pit at Robinson previous experience has only had limited value. It is expected that the complex nature of the Robinson ore body will continue to cause metal production variations from quarter to quarter. The table below lays out the current expectations of the Company with respect to production and capital costs for 2010 at Robinson under the current mine plan. Gold production in 2010 is expected to be lower than previous years due to declining gold head grades.
Mineral Resource and Mineral Reserve Estimates: Robinson Mine Copper and Gold Mineral Resource The Robinson Mine resource is as of January 1, 2009, 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.,David Newhook, P. Eng and Patrick Fahey, P. Geo, each of whom are employees of Quadra. Each of Mr. Hardy, Mr. Newhook and Mr. Fahey is a "Qualified Person" within the meaning of NI 43-101.
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, 2009. Note that all units are metric except for contained gold ounces.
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, 2009. Resource materials classified as "Measured" and "Indicated" within the pit and above the cutoff are called "Proven" and "Probable" reserves. The reserves are based on long term metal prices of US$2.00 per pound of copper and US$800 per ounce of gold. Reserves for the Robinson Mine were updated to reflect 2008 mining, changes to the resource model, and changes to ultimate pit designs and operating plans. An updated resource model incorporating results from 2006 through 2008 exploration drilling was utilized in calculating the updated reserves estimate. The reserves also reflect changes to anticipated metal prices, recoveries, operating conditions, and operating costs. 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.
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