VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan 28, 2013) - Belvedere Resources Limited (TSX VENTURE:BEL) ("The Company") announces further cost cutting initiatives at the Hitura nickel mine as a response to continued permitting delays to the open pit cutback, in a difficult operational environment of low nickel prices, a stronger euro, and lower grades and recoveries at the mine.
Cost cutting initiatives include: (1) the suspension of the underground development contractors. Development being carried out by Belvedere employees remains unaffected; (2) underground exploration drilling has been curtailed and (3) management has started co-operation consultations with employee representatives. This will allow the Company the flexibility to commence temporary lay-offs or suspensions if conditions do not improve in the coming months. The employee consultations will affect all employees at the mine. They are not binding but are a necessary first step under Finnish law before any suspensions or lay-offs can occur.
David Pym CEO comments: "Permitting delays and resultant uncertainties around the open pit, have severely affected operational flexibility at the mine, and placed undue pressure on the underground operations. The combination of low nickel prices, a stronger euro and low grades in the current stopes makes for difficult operational conditions. While the Company regrets initiating employee consultations, management considers it prudent to keep all options open, and to consider all cost saving initiatives at the mine to preserve working capital. The Company wishes to stress that no decision has yet been made on suspensions, lay-offs or changes to nickel operations at the Hitura Mine. The Company remains focused on delivering our first gold mine by the end of 2014, subject to permitting and final feasibility studies. It is envisaged that the Kopsa gold copper ore will be processed at the Hitura mill either utilising the existing facilities or in a parallel circuit to the nickel."
About Belvedere: Belvedere Resources Limited is a mining company incorporated in British Columbia with a primary focus on nickel, gold, cobalt and copper in Finland. The Company currently produces 2200t of nickel in concentrate/year from the Hitura nickel mine in Central Finland. The Company has a number of advanced gold projects in close proximity to the Hitura mine.
Forward Looking Statement:
Some of the statements contained herein may be forward-looking statement, which involve known and unknown risks and uncertainties. Without limitation, statements regarding the future of the Hitura Mine and the future feasibility, permitting and development of the Kopsa gold project, as well as the future plans and objectives of the Company are forward looking statements that involve various degrees of risk. It is important to note that the Company''s actual results could differ materially from those in such forward-looking statements.