April 12, 2011 / 9:46 PM / 7 years ago

UPDATE 1-Win-Eldrich's Q1 moly production nears 2008 high

* Says on track to achieve profitable year (Follows Alerts)

APRIL 12 (Reuters) - Precious metals miner Win-Eldrich Mines Ltd said quarterly production at its Ashdown molybdenum mine in Nevada was at peak levels last achieved in 2008, before lower prices forced the mine into maintenance.

Toronto-based Win-Eldrich said it produced 101,311 pounds of molybdenum in the first quarter of 2011. In 2008, it produced 416,245 pounds of the metal, which is used to make aircraft parts, electrical contacts and tool steel.

“Based on the rate of increase of first-quarter production rates, Ashdown is on track to achieve a profitable year,” Chief Executive Perry Muller said in a statement.

Win-Eldrich put the Ashdown mine, its principal asset, on standby mode after molybdenum prices crashed to less than $10 per pound from over $30 per pound in 2008.

Limited production began in 2009 as molybdenum prices improved and the company added to its mineral reserves as additional sources were identified deeper down in the deposit.

Shares of the company closed at 26 Canadian cents on Tuesday on the Toronto Venture Exchange. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Sriraj Kalluvila)

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