Quadra completes Carlota acquisition

Vancouver — In a previously announced deal valued at US$37.5 million, Quadra Mining (QUA-T, QADMF-O) has acquired the Carlota copper project in the historic Globe/Miami mining district of Arizona.

The Vancouver-based company bought the advanced oxide copper project from Cambior (CBJ-T, CBJ-X), which spent more than seven years and US$50 million developing the project during the 1990s. The project faced strong opposition from some environmental groups during the permitting phase, but a court decision in 1999 determined that an open-pit mine would have minimal impact on the environment.

Quadra paid US$15 million on closing of the transaction, and agreed to pay eight quarterly gold payments (starting March 31, 2006) of 6,250 oz. gold, representing a total of US$22.5 million, based on a gold price of US$450 per oz.

Quadra describes Carlota as a “development-ready” solvent extraction-electrowinning (SX-EW) copper project that could begin producing cathode copper as early as 2007. With the transaction now complete, the company expects that construction of the proposed open-pit, heap-leach mine could begin in 2006.

Based on a recent technical report compliant with National Instrument 43-101 reporting standards, Carlota could produce an average of about 66 million lbs. of LME-grade copper per year, over an 11-year mine life.

Over the next six months, Quadra plans an engineering and development program that will be used to advance the project and obtain mine financing and final permits.

Quadra produces copper and gold from the Robinson mine in Nevada. The mine produced 36.5 million lbs. copper and 24,666 oz. gold in the third quarter ended Sept. 30, resulting in a net loss of US$10,890 for the quarter. Cash cost of production was US$1.19 per lb. of copper produced in the quarter.