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Arehada
Provides Operations Update |
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TORONTO, June 10 , 2009 - Arehada Mining
Limited (TSX:
AHD)
today provided the following update for
its wholly owned Chinese operating subsidiary,
Arehada Mining Corporation.
The resumption of mining commenced in April
2009 and processing began on May 10, 2009.
Every phase of the operation in the mine
since resumption has been proceeding smoothly
and safely. The Company has seen improvement
in head grades and recovery levels. The
average combined lead - zinc head grade
has reached 3.33% in May, 2009. In addition,
the combined recovery rates of the lead
and zinc concentrate has improved to 88.66%,
an increase of 2% compared to the recovery
rate of 86.61% achieved in 2008. These two
key production performance indicators have
reached the best levels since 2005 when
the Company commenced operations. The primary
reason that the head grade has improved
is the adoption of the Short-hole shrinkage
method instead of Sublevel Open Stope Mining
(long-hole mining) method which was used
in the mine from 2005 to 2008.
The Company is benefiting from the recent
increase in base metal prices, which the
Company believes is the result of the increase
in the demand for base metals including
lead and zinc likely due to economy recovery
in China. Given the volatility in metal
prices, the Company's near-term primary
objectives are to maximize cash flow and
to minimize costs. The Company believes
it has effectively implemented these objectives
in May and will continue to implement conducted
over the coming months. If lead and zinc
prices significantly increase in the future,
the Company will consider adjusting these
near-term objectives.
About Arehada Mining
Arehada Mining Limited is engaged in the
exploration, development, extraction and
production of zinc, lead and silver in Dongwuzhumuqinqi,
located in Inner Mongolia, China. Arehada
produces zinc and lead concentrates, which
are then sold to smelters in China.
Arehada has completed construction of
a zinc processing plant, to produce zinc
calcine and sulphuric acid.
For further information:
Forward Looking Statements
The above contains forward looking statements
that are subject to a number of known and
unknown risks, uncertainties and other factors
that may cause actual results to differ
materially from those anticipated in our
forward looking statements. Factors that
could cause such differences include: changes
in world commodity markets, equity markets,
costs and supply of materials relevant to
the mining industry, extent of resources
actually contained in mineral deposits,
actual recoveries achieved in processing
ore, technological change, change to regulations
affecting the mining industry, risks associated
with mining operation in China, environmental
and safety regulations risks, and risk associated
with failure to obtain required regulatory
or third party consent. Forward-looking
statements in this release include statements
regarding future programs, review completion
dates and opportunities. Although we believe
the expectations reflected in our forward
looking statements are reasonable, results
may vary, and we cannot guarantee future
results, levels of activity, performance
or achievements.
Neither the TSXV or the TSX has in any
way passed upon the merits of this press
release and has neither approved nor disapproved
the contents of this press release.
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