Wallbridge Mining Resumes Operations at Broken Hammer

Wallbridge Mining (TSX:WM) has resumed operations at its Broken Hammer mine in Ontario as of June 1. The municipalities of Sudbury and Timmins enforced reduced load restrictions on trucks to protect some highways during spring thaw.

As quoted in the press release:

At March 31, 2015, Wallbridge had mined approximately 190,000 tonnes of ore and delivered the same to the Redstone Mill operated by Northern Sun Mining Corp. in Timmins, Ontario. The mining of the upper benches of the pit has resulted in the mining of an additional 87,000 tonnes of ore outside the reserves which was categorized as waste.

At March 31, 2015, approximately 55% of the original mine plan has been completed and Wallbridge has realized an 85% increase in tonnes of ore relative to the independent 2013 Mineral Reserve Estimate. Increased tonnage is a result of the copper-PGM veins on every bench to date being thicker and more continuous than estimated in the 2013 Mineral Reserve Estimate as well as slightly higher than estimated mining dilution. Under the original mine plan for Broken Hammer, mining would have been completed by the end of March 2015. However, as Wallbridge produced more tonnage than was estimated in the 2013 Mineral Reserve Estimate, the Broken Hammer open pit operation life has been extended and is expected to continue into the third quarter of 2015.

At March 31, 2015, Wallbridge had delivered the following to smelters for payment:

Copper concentrate: 7,076 tonnes at average grade of 24.5% copper, 34 grams per tonne palladium, 18 grams per tonne platinum and 8 grams per tonne gold.

High grade gravity concentrate: 107 tonnes at average grade of 100 grams per tonne palladium, 1320 grams per tonne platinum, and 230 grams per tonne gold.

Total payable metals, after deductions, in both copper and gravity concentrates are as follows:

Payable Copper: 3,670,000 lbs
Payable Platinum: 7,200 ounces
Payable Palladium: 6,750 ounces
Payable Gold: 2,250 ounces
Payable Silver: 8,200 ounces

Wallbridge forecasts the cash flow from the operations for the remainder of the project to be in the range of approximately $3.0 million based on metal prices and USD exchange rate at March 31, 2015. Wallbridge forecasts the life-of-mine cash flow for the project to be in the range of approximately $5 million based on metal prices and USD exchange rate at March 31, 2015. This is in line with previous estimates (for details please refer to press release dated July 8, 2014). The increased ore tonnage has been offset by decreases in metal prices. Should the metal prices or US dollar exchange fluctuate, the forecasted cash flow would be affected accordingly.

Wallbridge president and CEO, Marz Kord, said:

We expect to reach full production by June 15, 2015 producing both gravity and flotation concentrates and complete operation by October of this year.

Click here to read the Wallbridge Mining (TSX:WM) press release