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Arehada
Reports Second Quarter Results |
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TORONTO, Aug 13 , 2009 - Arehada Mining
Limited (TSX:
AHD)
today reports its second quarter results
as well as providing an update on its financial
conditions.
Revenue for the quarter was $1,815,960
from the mining of 34,897 tonnes of ore,
compared to $4,587,490 from 132,996 tonnes
in the same quarter last year. The net loss
of $1,384,217 or $0.008 per share in Q2
2009 compares to earnings of $933,360 or
$0.005 per share for the same quarter in
2008. The loss is due to the restarting
of the mining operations in May, and the
gradual ramp up of production.
During the quarter, Arehada conducted mining
operations at a rate of approximately 712
tonnes per day and operated 48 days during
the period which is significantly less than
the average rate of 1,536 tonnes per day
during the same period last year due to
the restarting of the mine and targeting
higher grades.
Head grades of approximately 1.53% zinc
and 2.24% lead resulted in an average combined
recovery rate of 90%. Silver head grades
of 72.62 grammes per tonne met a 73% recovery
factor from the lead concentrate. These
grades are significantly improved over the
average grades for 2008 and we expect them
to continue to improve for the balance of
2009.
The Company is also pleased to report that
it commenced interest payments on May 31st,
2009 to the Agricultural Bank of China.
As at July 24, 2009, a total of RMB3,160,113
(Cdn$505,618) has been repaid to the bank.
The Company expects to commence principal
payments in September 2009.
The Company has received the first repayment
of RMB1 million (Cdn$170,000) of the related
party loan from Baiyinhanshan Mining Group
Limited, a company controlled by Messrs.
Steve Fan Wang and Tom Zhen Wang, directors,
officers and controlling shareholders of
Arehada. Baiyinhanshan plans to make regular
monthly repayments to Arehada on this loan
and the August payment was the first of
such repayments.
"We are very pleased that the Company is
back in production", commented Steve Fan
Wang, Chairman of the Board. "With base
metal prices increasing in recent months,
the Company was able to resume its operations.
Although the second quarter saw us operating
for only one month, we are encouraged by
the results so far. We believe the strong
recovery of economy in China will continue
to increase base metal prices."
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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