Showing posts with label Copper. Show all posts
Showing posts with label Copper. Show all posts

Tuesday, March 12, 2013

Peru’s gold, silver and copper output fall in January 2013—Mining Ministry

Peru’s Ministry of Energy and Mines reported increased production of iron, lead and zinc in the first month of this year.

Author: Dorothy Kosich

Peru’s Ministry of Energy and Mines reported Monday the country’s gold production plunged 25.12% in January, as total silver production declined 7.27% and total copper output dipped 4.41% during the same period.

However, the ministry also noted that iron ore production was up nearly 13%, while zinc output increased 8.83% and lead was up 6.15% during the first month of this year.

In the first month of this year, Peru’s gold production was 11,762,163 grams (378,162 troy ounces), down from 15,708,384 grams (505,036 troy ounces) in January 2012. Minera Yanacocha reported a 25% decrease in gold production in January 2013.

The country’s silver production was 266,981 kilograms (8,583,638 troy ounces) during the first month of the year, 7.27% lower than the 287,918 kilograms (9,256,778 ounces) of silver production reported in January 2012.

Peru’s copper production was reported at 93,469 metric tons in January of this year, a 4.41% drop from the same period of 2012.

The Directorate of Mining Promotion of the ministry’s mining department noted that zinc production in January 2013 was 111,308 metric tons, up 8.83% from 102,280 metric tons of zinc output in January 2012.

Peru’s lead production was 19,837 metric tons in January 2013, a 6.15% increase compared to January 2012 lead output total of 18,689 metric tons.

The ministry reported that the country’s iron ore production for the first month of this year was 589,902 long tons, up 12.91% from 522,433 long tons for January 2012.

Source: Miniweb

Wednesday, January 30, 2013

Chile copper output falls in December, up 3% in 2012

Chile produced 513 344 t of copper in December, a 1.8 slip from a year earlier, but boosted its output of the red metal by 3% to 5.45-million tonnes during all of 2012, the government said on Wednesday.    

December output in the world's No 1 copper producer fell on lower ore grades and maintenance work in certain mines, the INE statistics agency said. Annual output rose last year to its highest since 2007, according to data from state copper commission Cochilco and the statistics agency.    

"Among the factors that explain this rise are better ore grades in some deposits, production increases in mines that began operating in 2011 and a low base of comparison due to a strike that affected an important mining company in July 2011," the agency said.    

World No 1 copper mine Escondida's union stunned the copper market in 2011 by staging a two-week strike, sending the mine's output tumbling and raising the specter of an increase in labour action.    

Cochilco had estimated 2012 copper output at 5.45-million tons in November, but Mining Minister Hernan de Solminihac had said in April that production would reach a whopping 5.7-million tons. Many analysts at the time had called his forecast too ambitious.     

On Monday Cochilco said Chile's copper output in 2012 reached 5.43-million tons.          

Chile is expected to produce 5.59-million tons of copper this year, up 3% from 2012 levels, as heavy investment in mines pays off, Cochilco also said on Monday.      

Cochilco said a pick-up at state copper producer Codelco's century-old Chuquicamata deposit and the launch of its Ministro Hales mine at the end of the year will help lift output of the metal, which is used in construction and power generation and transmission.     

But analysts have warned that several factors threaten forecast jumps in production, including deteriorating ore grades, delays to key energy and mining projects, and operational woes.    

Chile's molybdenum output nosedived 25% in December year-on-year to 2 008 t.

Production posted a 16.6% tumble to 30 155 t in 2012 from 2011 levels.

Edited by: Creamer Media Reporter

Thursday, January 24, 2013

Newmont reports 2012 output of 5m gold ozs., 143m lbs. copper

Newmont Mining has announced a first-quarter gold-linked price dividend of $0.425 per share (subject to board approval), a 21% increase over the prior year quarter.

Author: Dorothy Kosich

Newmont Mining has forecast 4.8 million to 5.1 million ounces of gold production and 150 million to 170 million pounds of copper in its 2013 guidance.

The company said it anticipates 2013 all-in sustainable costs to be between $1,100 and $1,200 per gold ounce of production.

This compares to 2012 total attributable gold and copper production of 5 million ounces and 143 million pounds of copper, down from 2011 full year production of 5.185 million gold ounces and full year copper production of 206 million pounds.

Newmont also reported attributable gold and copper production of 1.3 million ounces and 42 million pounds for the fourth-quarter 2012, down from 1.304 ounces of gold production and 47 million pounds of copper output during the same period of 2011.

Consolidated costs applicable to sales for 2012 averaged between $670 and $680 per ounce for gold and $2.30 to $2.40 per pound of copper.

“In 2013, we will focus on mining fundamentals—from technical competency to safety and social responsibility—to lay the groundwork for a profitable group and more robust cash flow generation,” said Newmont President and COO Gary Goldberg.

“Our priority is to advance projects that deliver profitable production gains, including completing construction at Akyem and beginning production in late 2013, and advancing our stripping campaign at Batu Hijau to prepare for Phase 6 mining,” he added.

Newmont currently plans $2.1 billion to $2.3 billion in attributable capital expenditures, of which 40% is allocated to development capital. The company’s investment priorities including completing Akyem construction, finishing the Phase 6 stripping campaign at Batu Hijau during 2013 and 2014, and identifying the best paths forward for Conga in Peru and Tanami in Australia. The company expects 2013 capex to decline 20% from 2012.

Additional capital investment is also possible at the Merian project in Suriname pending the outcome of further discussions with the government and more project evaluation.

Source: Mineweb

Thursday, January 17, 2013

Changing regulations delaying mining investments in Peru - Lumina Copper

Chinese joint venture Lumina Copper's US$2.5bn Galeno project in Peru's Cajamarca region has been delayed due to changing permitting regulations, and CEO Richard Graeme expects other mining companies are in the same boat.

"Government has been talking about [environmental impact study] approval changes and with that the information needed also changes, and who is going to review it, and I'm not exactly rushing to do things until I have some sort of direction," Graeme told BNamericas.

"To submit something to an agency which would not have the final say, I think would be ill-advised," he added.

The creation of a new government agency, Senace, in charge of evaluating environmental impact studies (EIS) has been the main cause for delay in completing Galeno's EIS, according to Graeme.

The company planned to submit Galeno's EIS in 2011, but community protests originally delayed submission and the company is now hesitant to submit the EIS during this time of transition. Lumina is now forecasting it will submit the EIS for evaluation in 2014-16.

"You must know who your audience is," Graeme said, adding that the uncertainty of whether or not the evaluation parameters will change has left the company in the dark.

Senace's creation was passed by congress in November 2012 and the agency is expected to begin operating in mid-2013. The related regulations and an implementation plan are due to be released next month.

Once regulation of the law is complete, the new agency will likely work together with the mines and energy ministry (MEM) for a period of time while the task of EIS evaluation is transferred over, according to former deputy environmental minister José de Echave.

Graeme expects the process to take no less than 14-15 months, and for that reason does not see the company submitting Galeno's EIS ahead of that timeframe.

According to the head of Peru's mines, oil and energy society SNMPE, a total of 20 mining projects planned for 2012-15, representing investments of over US$25bn, have been delayed due to social conflicts and bureaucracy.

The Galeno copper-gold-molybdenum porphyry property is expected to produce 144,000t/y of copper in concentrates over a 22-year mine life.

Lumina Copper is a 60:40 JV between China Minmetals and Jiangxi Copper.

Source: BNAmericas

Wednesday, January 9, 2013

HudBay sees lower copper output in 2013, Peru mine on track

HudBay Minerals said on Wednesday that copper production will be lower in 2013 following the closure of two of its Canadian mines.

The Toronto-based miner produced 39 587 t of copper concentrate in 2012, near the top end of its forecast of 35 000 to 40 000 t, and expects 2013 copper output of 33 000 t to 38 000 t.

HudBay also said its $1.5-billion Constancia copper development in Peru remains on track for first output in late 2014 and commercial production in the second quarter of 2015.

The company will spend some C$901-million on construction and development at Constancia in 2013, with its total capital spending budget for the year set at C$1.24-billion.

Edited by: Creamer Media Reporter

Friday, December 28, 2012

Antofagasta suspends its Chilean Antucoya copper mine

Chilean miner Antofagasta has halted development at its $1.7-billion copper mine Antucoya, as it reviews escalating costs of the project.

Antucoya, which was forecast to produce 80 000 t of copper cathodes a year, is one of the most capital intensive projects in the industry.

The cost of the mine was estimated at $1.7-billion by the time construction work was due to finish in 2014. The cost per ton of yearly production would have been over $21 000, analysts previously estimated.

"We remain concerned about the level of capital and operating costs in the industry," said Diego Hernandez, Antofagasta's CE, in a statement on Friday.

Antofagasta shares are listed in London and the statement came out after the market had closed.

"We believe Antucoya's decision to temporarily suspend and review the project reflects an appropriate and measured approach to addressing these concerns," added Hernandez, who took the helm at Antofagasta earlier this year.

Antofagasta approved the project last year, selling a 30% stake to Japanese trading house Marubeni to help shoulder the burden of the costs.

Decisions on the suspension and review were made by the Antucoya council, with representatives from both companies.

Chile, which produces roughly a third of the world's copper, is struggling with dwindling ore grades in many of its ageing deposits.

Like many of its peers fighting over a limited pool of skilled workers and equipment, Antofagasta is also having to battle the rising cost of building projects from scratch.

Antucoya is the same size and uses the same technology as the company's existing El Tesoro mine, but will cost over $1-billion more to develop just a decade later.

The company said notices of termination for the project's construction contracts were being issued immediately.

Edited by: Creamer Media Reporter

Wednesday, December 26, 2012

Xstrata ups Papua New Guinea mine cost estimate

Xstrata has raised its capital spending estimate for the undeveloped Frieda River copper mine in Papua New Guinea by $300 million to $5.6 billion, as costs to develop new mines continue to escalate.

Xstrata Copper delivered a feasibility study to minority partner Highlands Pacific (HIG.AX) on Friday that indicated the $5.6 billion capital cost estimate, Paul Gow, general manager of the Frieda River project, said in a statement.

Rising costs have forced many miners to review the spending required on greenfield copper projects as they battle over a limited pool of skilled workers and equipment, particularly in remote locations like Papua New Guinea (PNG).

Antofagasta on Friday halted development at its $1.7 billion Chilean copper mine Antucoya as it reviews escalating costs, and Xstrata put back a target to start production at the Tampakan copper-gold mine in the Philippines by three years to 2019 earlier this month.

Xstrata had estimated the Frieda River project to cost $5.3 billion when it released an earlier study two years ago.

The company, with an 81.8 percent stake in Frieda River, sees the mine yielding 304,000 tonnes of copper at an average cost of 71 U.S. cents per pound over the first five years.

Over the entire life of the operation, it sees an average yield of 204,000 tonnes annually at a cost of $1.11 per pound.

Xstrata is expected to review its pipeline of copper projects after its takeover by Glencore International (GLEN.L).

The company is following the course of other mega miners, including BHP Billiton (BHP.AX) (BLT.L) and Rio Tinto (RIO.AX) (RIO.L), in conserving capital amid uncertainty over global growth and falling commodity prices.

Earlier this year, Xstrata flagged its willingness to potentially sell all or part of its stake in Frieda River after conducting a review of its operations worldwide.

It said on Monday it had not made a decision yet on whether to divest or partially divest the project at this stage.

"Xstrata is currently assessing the interest of other investors in the project but declines to comment about potential timetables," a company spokesman said in an email.

Highlands Pacific said discussions were planned next year to determine future ownership of the project.

"During 2013 we will hold discussions with all parties, including the PNG government to determine the project's development path and the desire of the PNG government to take up a direct 30 percent equity stake in the project," it said.

Via its Petromin investment arm, PNG has invested in 17 projects, including a $19 billion liquefied natural gas field under construction by Exxon Mobil (XOM.N).

It is allowed to take up to 30 percent of mining and 22 percent of oil and gas projects, which it must then help fund.

Exxon Mobil in November said it faces a $3.3 billion spike in costs at its gas project in Papua New Guinea.

This year BHP scrapped an $80 billion spending plan, which included delaying indefinitely the expansion of its Olympic Dam copper mine in Australia, where analysts estimated costs had ballooned three-fold to more than $30 billion in just two years.

Shares in Xstrata were trading 1.1 percent higher at 1,062 pence by 1206 GMT, outperforming a flat FTSE 100 index finance/markets/index?symbol=gb%21ftse">.FTSE

(Reporting by James Regan, Victoria Thieberger and Abhishek Takle; Editing by Himani Sarkar and Mark Potter)

Wednesday, December 19, 2012

Japan’s Pan Pacific and major copper miner to agree rise in 2013 TC/RCs

Pan Pacific Copper and a major global miner are set to agree on an increase of at least 11% in treatment and refining charges for 2013, a source at the Japanese company says

Author: Osamu Tsukimori and Melanie Burton

Japan’s biggest copper smelter, Pan Pacific Copper, and a major global miner are set to agree on an increase of at least 11 percent in treatment and refining charges (TC/RC) for 2013, a source at the Japanese company said on Wednesday.

This would be the first major TC/RC deal for next year as producers have delayed striking terms that would normally have been settled by December due to rising mine supply and slowing global demand given a gloomy economic climate.

As such the terms of Pan Pacific's deal with the major miner would likely influence other TC/RC talks in the region, although in the last year or two final terms have diverged among participants with some miners demanding lower charges for cleaner, high grade concentrate.

"It is an important figure. It doesn't mean that everyone will settle at the same level, but it sends a very strong signal to the market," said analyst Duncan Hobbs of Macquarie in London.

"We've been thinking that TC/RCs would increase by upwards of 10 percent for contract business in 2013. From a smelter's point of view, it's a good number," he added.

The two companies are likely to settle somewhere in the range of $70.0 to $79.0 a tonne and 7.00 U.S. cents to 7.90 U.S. cents a pound for the charges, up from $63.0 and 6.30 cents for the whole of 2012, said the source, who has direct knowledge of the terms.

An agreement may come by the end of the year, the source added, declining to be named as the talks were confidential.

Global miners pay TC/RC to smelters to convert concentrate into refined metal and the charges are deducted from the sale price based on LME copper prices. Higher charges are typically seen when concentrate supply rises.

Earlier this month, China's copper smelters lowered their expectations for 2013 TC/RCS to $70-$75 and 7-7.5 cents, from $80 a tonne and 8 cents a pound.

The benchmark terms are substantially higher than the spot market, where recent tenders were in a tight range of $58/5.8 to $62/6.2, a concentrate trader in Europe said.

Miners typically agree to pay higher fees for material sold on contract because they have a guaranteed buyer.

In early talks with Chinese smelters BHP offered $60 and 6 cents while Freeport did not put a figure on the table.

The International Wrought Copper Council expects global mine supply to expand 6.5 percent to more than 17.7 million tonnes in 2013, versus a 3 percent growth this year.

Source: Mineweb

Tuesday, December 11, 2012

3 Commodity ETFs That Could Provide Big Gains In 2013

As the copper price picks up again, it is an indicator of returning emerging markets growth and it, along with oil and corn could be major beneficiaries of the uptrend

By Rudy Martin

The recent moves in copper prices are a leading global indicator to me. The commodity is up 4% and climbing. And that tells me part of the global recovery will favor industrials.

What’ll push the global appetite for commodities, such as copper, through the roof? Emerging markets, of course, fueled by a growing work force and increasing productivity.

Look at China (NYSEARCA:FXI) … PMI statistics are the best in seven months.

And Brazil (NYSEARCA:EWZ) … in October industrial output posted its first annual increase in more than a year. The Brazilian government put through a tax break on autos that helped support a nascent recovery in the country’s beleaguered manufacturing sector.

Going forward, I think there may be …

Three Main Opportunities in Commodities Next Year

Opportunity #1— Higher crude oil

Watch the S&P GSCI® Petroleum Index as an indicator. A higher price scenario assumes a combination of Iranian sanctions, low inventories, and limited spare OPEC production capacity.

You might consider United States Oil Fund LP (NYSEARCA:USO). This is the most actively traded oil ETF. Although it’s not the most efficient tracker of oil prices, you can’t beat the liquidity for moving in and out of the market.

Opportunity #2— Higher corn prices

The Teucrium Corn Fund (NYSEARCA:CORN), a corn exchange traded fund, has been one of the best performing funds this year as the worst drought in half a century decimated crops. For corn, I’m in the camp calling for a forecast of lower U.S. corn production next year. I’ve seen the damage and believe it will ripple into next year.

If nothing else, the cost of farming will also increase creating more pressure on prices. I also expect corn to lose acreage to other crops ahead of next spring’s U.S. planting season.

Opportunity #3— Higher copper prices

iPath DJ-UBS Copper ETN (NYSEARCA:JJC) is showing signs of life again. As I mentioned, the robust growth in Chinese production figures bode well for copper’s future. In addition, you can expect more construction projects completed and a pick-up in Chinese property sales. Plus there should be a modest rebound from other markets that could further support demand through the middle of next year.

On the copper mine supply side there is likely to be production growth, but that’s not a noticeable surplus factor until 2014.

To sum it all up: This near-term tightness in crude oil, corn, and copper should create some eye-popping opportunities for you in 2013.

Monday, December 10, 2012

China lifts outlook for mining sector in 2013 with accelerated infrastructure spending

A leading expert on China's economy says the country will push infrastructure investment next year in order to foster GDP growth, lifting the outlook for the global resources sector.

The Australian reports that Wang Tao, UBS's head of China economic research, predicts that the country's economic growth rate will rise to 8% next year from 7.6% this year.

According to Wang the two key drivers of the output gains will be infrastructure and property, both of which will raise demand for commodities such as iron ore and copper:

We are looking for the growth to be led by stronger infrastructure investment but also a modest recovery in property. So that means that even though total fixed investment is not much stronger than this year, they are going to be slightly more commodity intensive.

Beijing has already increased infrastructure spending over the past several months, while a rebound in the property market should foster an increased number of project starts.

Wang expects exports to remain stable and for China to enjoy a soft landing as it returns to a "modest recovery path."

Despite the salutary effects of increased spending on infrastructure and property in the short-term, such measures fly directly in the face of the conventional wisdom concerning the current state of the Chinese economy, which experts say suffers from insufficient consumer spending, wasteful spending on superfluous infrastructure projects and a looming real-estate bubble.

Friday, December 7, 2012

Vale to invest US$16.3bn in 2013 -

By Frederico Barbosa 

Brazilian mining giant Vale (NYSE: VALE) announced a capital expenditure budget of US$16.3bn in 2013, lower than the US$17.5bn estimated for 2012 and the US$18bn invested in 2011, amid prospects of a moderate expansion of global demand for minerals and metals over the medium term.

Of the total, US$10.1bn will be used for project execution. In addition, the plan includes US$1.1bn for R&D and US$5.1bn to support existing operations, Vale said in a statement.

Last year Vale had planned a record US$21.4bn investment for 2012 when the market showed strong iron ore demand and the company was accelerating projects.

However, CFO Luciano Siani recently admitted that the company is unlikely to reach its target of US$21.4bn by the end of the year due to a highly volatile market in Q3, which led to lower international prices for the diversified miner's products, mostly in iron ore.

Now, 2011's US$18bn is expected to be the company's investment peak for the foreseeable future.

MAJOR PROJECTS

Among its main projects, Vale's Carajás expansion in Brazil has US$2.1bn earmarked for its iron ore operations, to be included in five different areas.

Also in Brazil, one of Vale's largest investments next year will be in its Carajás S11D (Serra Sul) iron ore project in the southern area of Pará state, with US$658mn earmarked for the development of a mine and a processing plant. Budgeted at US$8.04bn, Serra Sul's start of operations is scheduled for 2H16.

The company's Long Harbor nickel plant in Canada will receive US$1.22bn from Vale in 2013, from a total expected capex of US$4.25bn.

Vale's Moatize coal operation in Mozambique will receive US$344mn for mine expansion and another US$1.08bn for the Nacala corridor project, which includes the construction of a port and a railroad to transport the coal mined.

The Río Colorado potash project in Argentina will see estimated investments of US$611mn in 2013. Río Colorado is expected to begin production in the second half of 2014, with a total investment of US$5.92bn.

STEEL, COPPER, EXPLORATION

Also, in 2013 the company expects to invest US$439mn in the Companhia Siderúrgica do Pecém (CSP) steel plant to be built in Ceará state, where Vale holds a 50% stake and South Korean firms Dongkuk (30%) and Posco (20%) own the remainder.

The company will invest US$401mn in the Salobo II copper project in Marabá, Pará state, which is expected to begin production in the first half of 2014.

The 2013 budget also includes US$382mn to fund the company's exploration program, and US$465mn for conceptual, prefeasibility and feasibility studies.

Vale estimates production of 306Mt of iron ore in 2013, while pellets are expected to reach 43Mt.

Rio de Janeiro-based Vale is the world's largest iron ore producer.

Source: Business News Americas

Wednesday, December 5, 2012

Chinese copper smelters lower expectations on 2013 term TC/RC

China's copper smelters are lowering expectations for 2013 term treatment and refining charges from global miners after getting a flat offer from BHP Billiton , for concentrates from the world's top mine, industry sources said on Tuesday.

The smelters have yet to strike deals on 2013 treatment and refining charges (TC/RC) after meetings with global miner BHP Billiton , the majority owner of Escondida in Chile, and Freeport-McMoRan Copper & Gold in China and London in recent weeks.

Smelters are seen to have a stronger upper hand in deal-making this year, as improving mine supply, matched with a global slowdown in economic growth, is set to swing the world market for refined copper into a small surplus next year.

Global miners pay TC/RC to smelters to convert concentrate into refined metal and the charges are deducted from the sale price based on LME copper prices. Higher charges are typically seen when concentrate supply rises.

In October, Chinese smelters were seeking an increase of about a quarter in 2013 term TC/RCs from this year to $80 a tonne and 8 cents a pound.

Now they are eyeing $70 to $75 and 7 to 7.5 cents after BHP offered $60 and 6 cents in recent meetings and Freeport did not put a figure on the table.

"Now, we think $70 to $75 is more reasonable," said a manager at a large copper smelter in China, who did not want to be named as he was not authorised to talk to media.

The manager has lowered his expectations even though Chinese smelters had still bid around $80 and 8 cents for 2013 term TC/RC in recent meetings with BHP.

China's smelters received term 2012 TC/RC at $60 and 6 cents from BHP for Escondida concentrates and $63.5 and 6.35 cents from Freeport, both seen as benchmarks in Asia.

"Japanese smelters are asking high TC/RCs...they may accept $75 or above," a manager at another large smelter in China said.

Smelters' higher requirements are encouraged by spot imports, which traded in a range from the mid-$70s and 7 cents to near $80 and 8 cents TC/RC for clean, standard concentrates to China, up around 55 percent from August.

TC/RC are a profit indicator for copper smelters. Higher TC/RC point to a rise in supply of refined metal because smelters are willing to produce more.

MINERS

But global miners were unwilling to accept a hike in charges because new smelting capacity is set to come on stream in China next year, demanding more concentrate imports, the sources said.

China and global miners are most likely to settle 2013 term TC/RC at $65 to $75 and 6.5 cents to 7.5 cents, depending on grades, sources at mining companies and international trading firms said.

BHP, in particular, is pushing for lower TC/RC to reflect its cleaner, high grade copper concentrate, several sources said, a move that may prompt development of two benchmarks.

"The smelters are looking at higher prices in the spot market and talking about higher fees, but that is related to tidying books ahead of year-end. If anything, we're just moving further apart," a source at a mining company said.

"December is a shortened month but I expect deals will be made because miners tend to lose leverage once the new year has begun," he added.

A trader at an international trading house in Europe said, "I think most likely it is something like $68/6.8 cents and I think a deal will get done in the next 2 weeks or so."

The International Wrought Copper Council expects global mine supply to expand 6.5 percent to more than 17.7 million tonnes, in 2013 from 3 percent growth this year.

Jiangxi Copper , China's top producer, estimates global mine production will rise more than one million tonnes next year, Deputy General Manager Wu Yuneng has said.

Japan copper exports rise 26 pct yr/yr in December

Japan's exports of refined copper rose 26 percent in December from a year earlier, aided by a 40 percent jump in cathode sales to China, Ministry of Finance data showed on Monday.

Exports of refined copper, which includes cathode and billet, totaled 39,309 tonnes, though they were down from the previous month's 46,278 tonnes.  

A robust expansion in exports to China, the world's top consumer of the metal, slowed from the previous month's 100 percent jump, but volume stayed at a high level due to improved arbitrage, buying at London Metal Exchange copper prices  and selling at Shanghai prices.

China's refined copper imports rose 18.3 percent in December on the month to a record high also due to increased use of copper for financing purposes, according to the General Administration of Customs data announced this month.

Demand for copper, found in industrial products ranging from cars to computer chips, is seen as a gauge of economic activity.      

China, Taiwan and Indonesia are the key export markets for Japanese copper.    

Following are refined copper and copper cathode exports (intonnes): 

 
Type           Dec 11     Nov 11   Dec 10     Jan-Dec 11    Jan-Dec 10
Refined*        39,309    46,278    31,180       610,358      528,372
Cathode only    36,046    44,532    28,761       402,114      491,313


* Includes cathode copper

Chinese copper smelters lower expectations on 2013 term TC/RC

China's copper smelters are lowering expectations for 2013 term treatment and refining charges from global miners after getting a flat offer from BHP Billiton , for concentrates from the world's top mine, industry sources said on Tuesday.

The smelters have yet to strike deals on 2013 treatment and refining charges (TC/RC) after meetings with global miner BHP Billiton , the majority owner of Escondida in Chile, and Freeport-McMoRan Copper & Gold in China and London in recent weeks.

Smelters are seen to have a stronger upper hand in deal-making this year, as improving mine supply, matched with a global slowdown in economic growth, is set to swing the world market for refined copper into a small surplus next year.

Global miners pay TC/RC to smelters to convert concentrate into refined metal and the charges are deducted from the sale price based on LME copper prices. Higher charges are typically seen when concentrate supply rises.

In October, Chinese smelters were seeking an increase of about a quarter in 2013 term TC/RCs from this year to $80 a tonne and 8 cents a pound.

Now they are eyeing $70 to $75 and 7 to 7.5 cents after BHP offered $60 and 6 cents in recent meetings and Freeport did not put a figure on the table.

"Now, we think $70 to $75 is more reasonable," said a manager at a large copper smelter in China, who did not want to be named as he was not authorised to talk to media.

The manager has lowered his expectations even though Chinese smelters had still bid around $80 and 8 cents for 2013 term TC/RC in recent meetings with BHP.

China's smelters received term 2012 TC/RC at $60 and 6 cents from BHP for Escondida concentrates and $63.5 and 6.35 cents from Freeport, both seen as benchmarks in Asia.

"Japanese smelters are asking high TC/RCs...they may accept $75 or above," a manager at another large smelter in China said.

Smelters' higher requirements are encouraged by spot imports, which traded in a range from the mid-$70s and 7 cents to near $80 and 8 cents TC/RC for clean, standard concentrates to China, up around 55 percent from August.

TC/RC are a profit indicator for copper smelters. Higher TC/RC point to a rise in supply of refined metal because smelters are willing to produce more.

MINERS

But global miners were unwilling to accept a hike in charges because new smelting capacity is set to come on stream in China next year, demanding more concentrate imports, the sources said.

China and global miners are most likely to settle 2013 term TC/RC at $65 to $75 and 6.5 cents to 7.5 cents, depending on grades, sources at mining companies and international trading firms said.

BHP, in particular, is pushing for lower TC/RC to reflect its cleaner, high grade copper concentrate, several sources said, a move that may prompt development of two benchmarks.

"The smelters are looking at higher prices in the spot market and talking about higher fees, but that is related to tidying books ahead of year-end. If anything, we're just moving further apart," a source at a mining company said.

"December is a shortened month but I expect deals will be made because miners tend to lose leverage once the new year has begun," he added.

A trader at an international trading house in Europe said, "I think most likely it is something like $68/6.8 cents and I think a deal will get done in the next 2 weeks or so."

The International Wrought Copper Council expects global mine supply to expand 6.5 percent to more than 17.7 million tonnes, in 2013 from 3 percent growth this year.

Jiangxi Copper , China's top producer, estimates global mine production will rise more than one million tonnes next year, Deputy General Manager Wu Yuneng has said.

Thursday, November 29, 2012

Peru’s copper, silver production up; gold, moly fall in Sept

Peru’s molybdenum production fell by half in September 2012 as lead and zinc output improved, says the country’s mining ministry.

Author: Dorothy Kosich

Peru’s Ministry of Energy and Mines reported copper production increased 9.58% in September while iron ore was up 81.55% and silver increased 8.65%.

The ministry reported copper production was up 5.46% during the period of January to September 2012 from 898,875 metric tons from January to September 2011 to 947,922 metric tons. For September 2012 copper production was 113,615 metric tons, up 9.58% from 103,680 tons metric for September 2011.

The increased copper output was attributed to higher production from Sociedad Minera El Brocal, Compania Minera Antamina and Compania Minera Milpo.

Iron ore production for September 2012 was reported at 892,478 long tons (906,799 metric tons), up 81.55% from 491,580 long tons (499,498 metric tons). For the period from January to September 2012, Peru’s iron ore production totaled 5,371,234 long tons (5,457,425 metric tons), up 2% from 5,266,475 long tons (5,350,985 metric tons) during the same period of January to September 2011.

Peru’s silver output increased by 3.65% in September 2012 from 282,348 kg fine (9,077,699 troy ounces) in September 2011 to 292,677 kg fine (9,409,784 ounces). Increased silver production for September of this year was reported at Minera Argentum, Cerro Manager and Compania Antamina.

For the period from January to September 2012, the mining ministry reported cumulative silver production of 2,588,775 kg (83,231,050 ounces), 2.55% higher than 2,524,488 kg (81,164,174 ounces) of silver output reporting during the same period of last year.

Gold production for September 2012 was reported at 12,822,724 grams (412,260 troy ounces), down 9.12% from the 14,108,776 grams (453,607 ounces) reported in September 2011. Gold production for September of this year declined at Minera Laytaruma and Minera La Zanja.

During the period from January to September 2012, Peru reported total gold production of 124,273,608 grams (3,995,489 ounces) up 0.17% than the same period of 2011 for total production of 124,068,705 grams (3,988,901 ounces).

The mining ministry reported zinc production of 108,810 metric tons for September of this year, up 15.69% from 94,058 metric tons of production for September 2011. Increased production at Minera Antamina, San Ignacio de Morococha and Ancash Nyrstar was reported in September 2012.

For the period from January to September 2012, Peru reported total zinc output of 974,924 metric tons, up 2.29% from 953,076 metric tons of zinc production reported during the same period of last year.

Peru’s lead production fell by 4.12% from 20,578 metric tons in September 2011 to 19,730 metric tons in September of this year. The decrease was attributed to lower production at Empresa Administradora Cerro, Minera Atacocha and Minera Santa Luisa.

From January to September of this year, Peru reported total lead output of 188,442 metric tons, up 10.88% from 169,951 metric tons of lead production reported during the same period of 2011.

The mining ministry reported molybdenum production plunged 50.6% from 2,167 metric tons in September 2011 to 1,071 metric tons in September 2012. Peruvian moly is mined by Southern Peru Copper.

For the period from January to September 2012, Peru’s moly output declined 7.19% from 13,644 metric tons from January to September 2011 to 12,663 metric tons.

The mining ministry reported that Peru’s sole tin producer, Minsur, reported a 21.26% decline in production in September 2012 from 2,707 metric tons in September 2011 to 1,071 metric tons.

For the first nine months of this year, Peru reported total tin production of 19,522 metric tons, down 9.92% from 21,672 metric tons during the same period of last year.

Source: Mineweb

Wednesday, November 28, 2012

Chile Escondida copper mine union agrees to early labour talks

Unionised workers at the world's No1 copper mine, Chile's Escondida, have voted in favour of early labour talks with the mine's controller, global miner BHP Billiton, a union leader told Reuters on Tuesday.

Escondida's union stunned the copper market last year by staging a two-week strike, which sent the mine's output tumbling and raised the specter of an increase in labour action. Holding early talks this year suggests improved chances that the firm and workers can clinch a deal.

"We were invited by the company (to hold negotiations) and the workers accepted," Marcelo Tapia, a union leader at Escondida, told Reuters.

BHP declined to comment. Escondida's labour contract is set to expire next June.

BHP and Rio Tinto, which owns 30% of the mine, have approved plans for a $4.5-billion expansion of Escondida to boost output.

Escondida's third-quarter output surged 72.4% from a year earlier to 253 800 t, boosted by better ore grades and a low base of comparison from the year-ago quarter. Output in the January-September period was 787 000 t, up 31.6% from a year earlier.

The mining industry in Chile, the world's leading copper producer, is also bracing for collective negotiations at state copper producer Codelco's massive Chuquicamata mine. Most unionised workers at the century-old deposit have voted to start early contract negotiations, a union source told Reuters earlier this month.

Edited by: Creamer Media Reporter

Friday, November 16, 2012

Regulus continues to extend Southwest copper-gold zone Rio Grande Project-Salta, Argentina

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Nov. 16, 2012) - Regulus Resources Inc. ("Regulus" or the "Company") (TSX VENTURE:REG) is pleased to announce results for an additional six drill holes from the current drilling program at the Rio Grande copper-gold-molybdenum project in Salta Province, Argentina. These holes were all drilled as 50 m offsets to well-mineralized holes previously reported from the Southwest high-grade copper-gold zone. Key results from these holes are summarized below and in Table 1. Drill hole locations are noted in Figure 1.

  • RGR-12-111 intersected oxide gold mineralization commencing from surface:
    • 112.00 m with 0.53 g/t Au and 0.01% Cu
    • including 64.00 m with 0.63 g/t Au and 0.01% Cu
  • RGR-12-111 intersected higher grade copper-gold sulphide zone at depth:
    • 195.50 m with 0.53 g/t Au and 0.36% Cu (1.31 g/t Au Eq)
    • including 67.50 m with 0.75 g/t Au and 0.50% Cu (1.82 g/t Au Eq)
  • RGR-12-107 intersected two zones of higher grade copper-gold sulphide zone at depth:
    • 34.00 m with 0.71 g/t Au and 0.47% Cu (1.57 g/t Au Eq)
    • including 12.00 m with 1.26 g/t Au and 0.72% Cu (2.54 g/t Au Eq) and
    • 32.00 m with 0.76 g/t Au and 0.71% Cu (2.09g/t Au Eq)
    • including 10.00 m with 1.51 g/t Au and 1.46% Cu (4.23 g/t Au Eq)
  • RGR-12-116 intersected higher grade copper-gold sulphide zone at depth:
    • 34.95 m with 1.10 g/t Au, 1.02% Cu, and 46.5 g/t Ag (3.71 g/t Au Eq)
    • including 14.40 m with 2.07 g/t Au, 2.12% Cu, and 104 g/t Ag (7.61 g/t Au Eq)

John Black, President and CEO of Regulus commented as follows: "We have now intersected the high-grade copper-gold Southwest zone on four parallel drill sections, spaced at approximately 50 metre intervals with a vertical extent of mineralization exceeding 500 m. Mineralization remains open both laterally and to depth but appears to be decreasing in grade, thickness and gold/copper ratio away from the high-grade core defined by drill holes RGR-11-086, RGR-12-099 and RGR-12-106. The geometry of the mineralized zone is now quite well constrained as a tabular zone with a northwest strike and dipping steeply to the northeast. The true thickness of the zone is variable and not fully constrained but appears to be approximately 40-80 m at a cut-off grade of 0.5% Cu Equivalent in the central portion of the zone. We are currently in the process of integrating the results of this drilling campaign to identify additional targets similar to the Southwest high-grade copper-gold zone within other portions of the Rio Grande ring structure."

Results of 2012 Drilling To Date

Twenty-seven drill holes (23,871 m) have been completed to date in the ongoing 2012 Rio Grande drilling program with additional drilling currently in progress. The drilling has concentrated in the immediate vicinity of the significant intercepts previously reported from drill holes RGR-11-86 and RGR-11-88 in the Southwest zone of the Rio Grande system (see Regulus news releases of December 14, 2011 and February 8, 2012). Results from the first thirteen holes of the 2012 drilling program have been previously released (August 14, September 20, and October 25, 2012) and results from an additional six holes are presented here. Please note that Regulus is also issuing an additional press release at the same time as this communication to announce the discovery of a significant new gold zone two kilometers to the northeast from the principal Rio Grande system. A single drill hole (RGR-12-118) was completed into the Northeast Gold target this campaign and intersected an interval of 297 m with 0.36 g/t gold and 0.06% copper starting from the surface. This mineralization occurrence is very similar in nature to Mansfield Minerals' (TSX VENTURE:MDR) Lindero gold deposit located ten kilometers to the southeast.

The locations of drill holes presented in this release are indicated on Figure 1. Please also refer to the Regulus Resources website,www.regulusresources.com for additional information about Regulus and the Rio Grande Project. Additional description of the holes presented in this release follows below.

RGR-12-107 From (m) To (m) Metres Au g/t Cu % Ag g/t Mo % Au Eq Cu Eq Mineral Zone
TD = 1092.10 206.00 226.00 20.00 0.10 0.51% 1.50 0.000%     Supergene
  347.00 366.00 19.00 0.35 0.12% 5.18 0.002%     Supergene
  394.00 414.65 20.65 0.41 0.30% 1.57 0.009% 1.01 0.59% Primary
  495.00 529.00 34.00 0.71 0.47% 0.90 0.006% 1.57 0.92% Primary
including 515.00 527.00 12.00 1.26 0.72% 1.19 0.003% 2.54 1.48% Primary
  690.00 722.00 32.00 0.76 0.71% 3.44 0.008% 2.09 1.22% Primary
including 708.00 718.00 10.00 1.51 1.46% 6.30 0.015% 4.23 2.47% Primary
RGR-12-109 From (m) To (m) Metres Au g/t Cu % Ag g/t Mo % Au Eq Cu Eq Mineral Zone
TD = 1107.30 310.75 802.00 491.25 0.22 0.20% 0.95 0.005% 0.61 0.36% Primary
  310.75 367.50 56.75 0.30 0.21% 1.05 0.002% 0.69 0.40% Transitional
  493.50 514.50 21.00 0.42 0.31% 1.46 0.004% 1.01 0.59% Primary
  523.00 558.00 35.00 0.28 0.24% 1.37 0.002% 0.73 0.43% Primary
  648.00 677.75 29.75 0.35 0.40% 0.88 0.008% 1.11 0.65% Primary
RGR-12-111 From (m) To (m) Metres Au g/t Cu % Ag g/t Mo % Au Eq Cu Eq Mineral Zone
TD = 985.50 4.50 116.50 112.00 0.53 0.01% 1.16 0.013%     Supergene
including 4.50 68.50 64.00 0.63 0.01% 1.56 0.014%     Supergene
  303.50 499.00 195.50 0.53 0.36% 1.85 0.019% 1.31 0.76% Transitional
including 374.50 442.00 67.50 0.75 0.50% 2.70 0.024% 1.82 1.06% Primary
RGR-12-113 From (m) To (m) Metres Au g/t Cu % Ag g/t Mo % Au Eq Cu Eq Mineral Zone
TD = 658.50 67.50 258.00 190.50 0.24 0.08% 0.51 0.003%     Supergene
  67.50 118.50 51.00 0.35 0.01% 0.59 0.001%     Supergene
  124.50 141.00 16.50 0.33 0.04% 0.56 0.001%     Supergene
  200.00 216.95 16.95 0.40 0.04% 0.53 0.006%     Supergene
  326.65 342.00 15.35 0.23 0.05% 1.50 0.009%     Supergene
  365.50 392.25 26.75 0.37 0.48% 1.42 0.010% 1.29 0.75% Transitional
RGR-12-115 From (m) To (m) Metres Au g/t Cu % Ag g/t Mo % Au Eq Cu Eq Mineral Zone
TD = 978.80 182.80 194.00 11.20 0.34 0.03% 0.59 0.004%     Supergene
  286.65 334.00 47.35 0.62 0.35% 1.66 0.006%     Supergene
  388.00 530.00 142.00 0.36 0.39% 1.82 0.012% 1.14 0.67% Primary
including 390.00 430.00 40.00 0.55 0.45% 1.37 0.021% 1.49 0.87% Primary
  799.00 815.00 16.00 0.35 0.12% 0.34 0.001% 0.57 0.33% Primary
  916.00 928.00 12.00 0.33 0.10% 0.13 0.001% 0.51 0.30% Primary
RGR-12-116 From (m) To (m) Metres Au g/t Cu % Ag g/t Mo % Au Eq Cu Eq Mineral Zone
TD = 1470.50 199.00 504.00 305.00 0.33 0.22% 9.54 0.002%     Supergene
  331.00 355.00 24.00 0.34 0.03% 0.36 0.004%     Supergene
  371.80 406.75 34.95 1.10 1.02% 46.52 0.003% 3.71 2.16% Transitional
including 382.10 396.50 14.40 2.07 2.12% 103.77 0.005% 7.61 4.44% Transitional
  416.00 502.00 86.00 0.30 0.26% 14.04 0.009% 1.06 0.62% Primary
  623.00 656.00 33.00 0.34 0.34% 70.06 0.010% 2.25 1.31% Primary
  868.20 1131.50 263.30 0.23 0.09% 1.01 0.007% 0.45 0.26% Primary
including 902.00 941.00 39.00 0.29 0.10% 0.43 0.005% 0.50 0.29% Primary
and 1028.00 1064.00 36.00 0.41 0.12% 2.33 0.006% 0.70 0.41% Primary
and 1105.45 1124.05 18.60 0.35 0.18% 1.01 0.011% 0.75 0.44% Primary

Table 1: Rio Grande Drill Results

*Copper equivalent calculation uses US$2.50/lb Cu, US$1,000/Oz Au, US$18.00/Oz Ag and US$10.00/lb Mo and is not adjusted for metallurgical recoveries as these remain uncertain. The formula to calculate Cu equivalent is Cu Eq. = (Cu x 1) + (Au x 0.5833) + (Ag x 0.0105) + (Mo x 4). Intercepts are reported as down-hole intercept lengths and may not necessarily represent true widths.

To view "Figure 1: Rio Grande Drill Hole Location Map", please visit the following link: http://file.marketwire.com/release/regmap111.pdf

To view "Figure 2: Rio Grande – Section 613,350E", please visit the following link: http://media3.marketwire.com/docs/regmap2.pdf

Drill Hole Descriptions

The six drill holes presented here were all drilled to test for extensions of high-grade copper-gold mineralization previously reported in drill holes RGR-11-086, RGR-12-099, and RGR-12-106 at the Southwest high-grade copper-gold zone. The holes are typically lateral or vertical step outs of approximately 50 m from previous holes and most are oriented on north-south drill sections.

Drill results to date indicate that the high-grade mineralized zone is a tabular body striking approximately 150 degrees and dipping approximately 75-80 degrees to the northeast. The true thickness of the zone is variable and not fully constrained but appears to be approximately 40-80 m at a cut-off grade of 0.5% Cu Equivalent. Along strike to the east and west the thickness and average grade of the zone appears to be decreasing.

RGR-12-107 was drilled to the west as a cross hole to better determine the geometries of the mineralized zone and associated dykes. This hole intersected two zones of higher grade copper-gold sulphide zone at depth: 34.00 m with 0.71 g/t Au and 0.47% Cu (1.57 g/t Au Eq) and 32.00 m with 0.76 g/t Au and 0.71% Cu (2.09 g/t Au Eq). It is not yet clear if the zone has split into two parallel zones or if a single, narrower zone has been repeated by faulting.

RGR-12-109 was drilled beneath drill hole RGR12-99 but failed to intersect high-grade mineralization. It did encounter a long interval of low-grade mineralization (491 metres grading 0.22% Cu and 0.20 g/t Au) that may be the net result of dilution by late to post-mineral dykes and the effects of an overprint of late, copper-barren alteration.

RGR-12-111 was drilled below RGR-12-106 to test for the down dip extension of the high-grade copper-gold zone (please refer to the cross section in Figure 2). The hole intersected a near surface oxide gold zone with 112.00 m containing 0.53 g/t Au and 0.01% Cu including 64.00 m with 0.63 g/t Au and 0.01% Cu starting at surface. The hole extended the high-grade sulphide zone to 500 metres depth with an interval of 195.50 m containing 0.53 g/t Au and 0.36% Cu (1.31 g/t Au Eq.) including 67.50 m with 0.75 g/t Au and 0.50% Cu (1.82 g/t Au Eq).

RGR-12-113 was drilled above RGR-12-099 to test the leached cap above the high-grade copper-gold zone. As anticipated, the hole encountered gold oxide mineralization with low copper contents. The gold grade was somewhat lower than anticipated with an interval 190.50 m containing 0.24 g/t Au and 0.08% Cu. Within this interval there are narrow zones with gold grades in the 0.3-0.5 g/t range.

RGR12-115 was collared approximately 40 m to the east of RGR11-099. The hole intersected a number of mineralized zones including 47.35 metres with 0.35% Cu and 0.62 g/t Au in the oxide zone and 142 metres of sulphide mineralization with 0.45% Cu and 0.55g/t Au (1.14 g/t Au Eq.).

RGR-12-116 is located on the north-south drill section 50 m to the west of RGR-12-106. The hole intersected a narrow high-grade copper-gold sulphide zone at depth with 34.95 m of 1.10 g/t Au, 1.02% Cu, and 46.5 g/t Ag (3.71 g/t Au Eq) including 14.40 m with 2.07 g/t Au, 2.12% Cu, and 104 g/t Ag (7.61 g/t Au Eq). This hole was extended to depth to test for quartz stockwork gold mineralization like that encountered in hole RGR-12-100 to the south. Unfortunately the hole deviated considerably to the west and failed to test the area below RGR-12-100, although it did intersect a low grade zone of gold mineralization associated with quartz stockwork veining (263.30 m with 0.23 g/t Au and 0.09% Cu).

Rio Grande Copper-Gold-Molybdenum Project Summary

The Rio Grande Project is located approximately 55 km southwest of the Taca Taca porphyry copper deposit of Lumina Copper and 11 km west of the Lindero gold deposit of Mansfield Minerals in Salta Province, northwestern Argentina. A NI 43-101 compliant resource estimate was released for the project late last year (please refer to news release of December 6th, 2011).

The resource estimate, utilizing a 0.40% copper equivalent cut off grade, is summarized below:

  • Indicated Resource: 55,257,862 tonnes with 0.342% Cu, 0.359 g/t Au, 4.38 g/t Ag
  • Inferred Resource: 101,088,174 tonnes with 0.303% Cu, 0.308 g/t Au, 4.45 g/t Ag
  • Indicated Resource: 637,025 oz Au, 7,787,342 oz Ag, 416,240,000 lbs Cu
  • Inferred Resource: 1,002,458 oz Au, 14,449,042 oz Ag, 674,405,000 lbs Cu

Approximately 53% of the published resource is oxide mineralization, 35% is transitional oxide-sulphide mineralization and 12% is sulphide mineralization.

The current resource estimate utilized all drilling at Rio Grande prior to 2010. The Southwest Zone was discovered in late 2011 and is not included in the current resource estimate. Further drilling in 2012 has now revealed that several mineralization styles are present in the Southwest Zone and these will be referred to as the a) Southwest copper-gold sulphide, b) Southwest supergene copper, c) Southwest oxide gold, d) Southwest molybdenum, and the newly discovered e) Southwest gold quartz stockwork zones. The approximate spatial relationship between these zones is illustrated in Figure 2 below.

About Regulus Resources Inc.

Regulus Resources Inc. (TSX VENTURE:REG) is a mineral exploration company formed in December, 2010 in connection with the sale of Antares Minerals Inc. to First Quantum Minerals Ltd. (TSX:FM). Regulus has been exploring the Rio Grande Cu-Au-Ag porphyry project in Salta Province of NW Argentina as a 50/50 joint venture partner with Pachamama Resources and the two companies recently merged under the name of Regulus Resources to consolidate a 100% interest in the project and pursue an aggressive exploration program (see Regulus press releases of May 11 and May 16, 2012).

All of Regulus' exploration programs and pertinent disclosure of a technical or scientific nature are prepared by, or under the direct supervision of, Wayne Hewgill, P.Geo, and Regulus' COO, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.

The Rio Grande samples were analysed with the following methods: Au – 30 g FA with AA Finish, Cu – four acid digestion for trace Cu and four acid digestion and AAS for ore grade Cu, 35 element Aqua Regia ICP-AES.

Regulus' security, chain of custody and quality control is described on their website and can be reviewed at:http://www.regulusresources.com/BestPractices/SamplingMethodologies.aspx

Forward Looking Information

Certain statements regarding Regulus, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Regulus' control.

Specifically, and without limitation, all statements included in this press release that address activities, events or developments that either Regulus expects or anticipates will or may occur in the future, including management's assessment of future plans and operations and statements with respect to the completion of the anticipated drilling program and the completion of a NI 43-101 compliant resource estimate, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Regulus' control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements. Although Regulus believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such risks and uncertainties include, but are not limited to: the impact of general economic conditions in Canada and Argentina, industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced, in Canada and Argentina, fluctuations in commodity prices and ability to complete operations due to factors beyond Regulus' control.

Although the forward-looking statements contained in this Press Release are based upon assumptions which management believes to be reasonable, Regulus cannot assure shareholders that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this press release, Regulus has made assumptions regarding: current commodity prices and royalty regimes; timing of receipt of regulatory approvals; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the impact of increasing competition; conditions in general economic and financial markets; effects of regulation by governmental agencies; royalty rates; future operating costs; and other matters.

Accordingly, Regulus does not give any assurance nor make any representations or warranty that the expectations conveyed by the forward-looking statements will prove to be correct and actual results may differ materially from those anticipated in the forward-looking statements. Regulus does not undertake any obligation to publicly update or revise any forward-looking statements other than required by applicable securities law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.