Bisha Mining Announces Q1 2014 Operating Results

May 6, 2014

Bisha Mining Share Company (BMSC or the Company) is pleased to report financial and operating results for the three months ended March 31, 2014. 

First Quarter 2014 Highlights

  • Bisha continued copper ramp up with 39.7 million pounds produced in the quarter
  • Increased indicated resource tonnes by 29% and contained copper by 22%
  • Achieved the following financial and production metrics: 

For the three months ended,

Sales: March 31,
December 31,



Revenue (millions)





Payable copper sold, millions of pounds(2)



Payable copper sold, tonnes



Copper price realized. per payable pound sold








Mining – copper:    
Ore mined, tonnes 487,000 533,000
Waste mined, tonnes 3,471,000 2,664,000
Strip ratio, (using tonnes) 7.1 5.0
Processing – copper:    
Ore milled, tonnes 353,000 401,000
Copper feed grade, % 6.1 5.1
Recovery, % of copper 83.5 79.7
Copper concentrate grade, % 28.8 26.0
Copper in concentrate produced, millions of pounds 39.7 36.0
Copper in concentrate produced, tonnes 18,007 16,374

(1)  The Company achieved commercial production of the copper plant on December 1, 2013.
(2)  Q1 2014 included 4.5 million pounds (Q4 2013 – 30.6 million pounds) of pre-commercial production. Receipts from pre-commercial production sales were credited against mineral property, plant and equipment, net of costs of sale.
(3)  Not meaningful.

“Bisha had a great quarter” stated Cliff Davis, BMSC’s Chairman.  “While we are still ramping up production, we continue to optimize the copper plant and the copper concentrate logistics.  We are poised to accelerate production during Q2 2014 and reiterate our 2014 production guidance of 180,000 to 200,000 pounds of copper in concentrate.”

“We have continued an aggressive generative exploration program on the highly prospective Bisha property and neighbouring Mogoraib River license.”

During Q1 2014, 487,000 tonnes of ore were mined, of which 382,000 tonnes were supergene ore and the remaining oxide, pyrite sand and primary ore were stockpiled for later processing. In order to minimize oxidation of the supergene ore, lower levels of pre-crusher broken ore stocks were maintained on the mine ore blending pad.  Waste mining has improved considerably from past performance with 3,471,000 tonnes mined in the quarter with strip ratios in line with our expectations.

Ore mill feed of 353,000 tonnes was less than the prior quarter’s mill feed due to much higher copper feed grades than expected (6.1%, compared with a planned 4.6%) and the lack of room on the concentrate pad due to the trucking logistics.  Increasing mill feed rates with such high copper grades would have resulted in lower copper recoveries and more copper discharged to the tailings management facility. With the concentrate trucking logistics operating only at about 85% efficiency, the plant was required to stop for 13 days during Q1 2014. With the planned injection of additional truck and trailer sets during Q2 2014, the increased trucking capacity should have a positive impact on the Company’s ability to achieve its 2014 production forecast of 180 to 200 million pounds of copper produced in concentrate.

Copper recoveries and concentrate grades are ramping up as expected approaching 87% and 30% respectively by quarter end.

During the quarter the Company released updated resource and reserve estimates.  The copper resource estimate increased by 22% over the previous one released in May 2012.  In addition, the open pit Hambok and North West Zone resources were added for the first time.  Despite mining depletion and cost inflation since our last reserve report, Bisha base metal mine life is 11 years, demonstrating the robust nature of the high grade Bisha Main ore body. 

Forward Looking Statements: The above contains statements regarding future gold and copper production, mine operations, and process recoveries.Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimated,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved.  Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors.  The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future.

Bisha Mining Share Company

“Cliff T. Davis”

Cliff T. Davis