Chile Mining Technologies Provides Update for
the First Quarter of Fiscal 2011
August 31, 2010 11:40 AM Eastern Daylight Time
SANTIAGO, Chile--(EON: Enhanced Online News)--Chile Mining Technologies, Inc. (OTCBB: LVEN)
(“CMT”), today provided the following business update for the first quarter of fiscal 2011, ended June 30, 2010.
While CMT saw significant progress toward its overall business plan during the first quarter of fiscal 2011, the
company also addressed several short term challenges. First, CMT management, recognizing additional opportunities
with the Ana Maria plant, chose to take the facility off-line in May 2010 in order to increase the facility’s overall
capacity by 50%. Management determined that the available supply of minerals at the Ana Maria plant (including
deliveries from third parties) was sufficient to provide greater long-term benefits from the added capacity than the
short-term challenges of taking the facility off-line. The upgrades took approximately 3 months and cost
approximately $800,000. The facility has now resumed production and the first batch of copper is expected in early
September 2010.
The Company determined that taking the facility off-line while still ramping its production would result in significantly
less lost revenue than had it taken the plant off line toward the end of its current fiscal year. The upgrades increased
monthly output capacity from 120 metric tons per month to 180 metric tons per month. Assuming a copper price of
$3.25 per pound, the spot price of copper on the London Metal Exchange on August 24, 2010, the added capacity
alone would result in approximately $430,000 of additional revenue per month. Therefore, due to the additional
opportunity, management determined the long-term benefits of the added capacity outweighed the short-term
disadvantages of taking the plant off-line.
During the Company’s fiscal quarter ended June 30, 2010, in accordance with generally accepted accounting
principles in the U.S., approximately $500,