Revett Minerals (RVM.TO, NYSEMKT:RVM) has updated the market on the current reserve estimate of their 100% owned Troy Mine in Montana. They currently have 11M tonnes at an average grade of 1 oz/t of silver and almost 0.4% of copper for a total amount of 11M oz of silver and in excess of 85Mlbs of copper in the reserve categories. This ensures an additional life of mine of approximately 8 years, confirming our hypothesis that the Troy Mine will still be in production in the next decennium.
More importantly, Revett announced an update on the reopening of the Troy Mine, and the company expects to restart production in April of this year. The Company recently completed underground travel-way inspections from the South Adit. These inspections confirmed groundfall along a portion of the main haulage route and the company is currently developing a new connecting drive. This new drive is expected to be completed within a month.
If Revett is able to restart the operational activities from April on, we think it should be possible to produce at least 600koz of silver this year and the company will be cash flow positive again.
Disclosure: Revett Minerals Inc. is a sponsoring company. Please see our disclaimer for current positions.
