Interview with: William Orchow, President, CEO and Director - featuring their North American copper and silver production with a mine, and a large development project located in northwestern Montana, USA.

Revett Minerals Inc. (RVM-TSX)

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Revett Minerals has a significant future with copper and silver production from its Troy Mine and one of the largest silver deposits in North America; a long life project that will be about 20 to 25 years of production

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Development & Production

Revett Minerals Inc.

11115 East Montgomery – Suite G
Spokane Valley, WA 99206
Phone: 509-921-2294

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William Orchow
President, CEO and Director

Interview conducted by:
Lynn Fosse, Senior Editor
April 6, 2006

William Orchow - President, Chief Executive Officer and Director

Prior to joining Revett Silver as an officer in September 2003, Mr. Orchow was president and chief executive officer of Kennecott Minerals Company, where he was responsible for the operation and business development of all of Kennecott’s mineral mines with the exception of its Bingham Canyon mine from November 1994 to December 2002. From June 1993 to October 1994, he was president and chief executive officer of Kennecott Energy Company, the third largest producer of domestic coal in the United States, and prior to that was vice president of Kennecott Utah Copper Corporation. Mr. Orchow has also held senior management and director positions with Kennecott Holdings Corporation, the parent corporation of the aforementioned Kennecott entities. He has also been a director and member of the executive committee of the Gold Institute, a director of the National Mining Association and a director of the National Coal Association. Mr. Orchow is currently a director of Little Squaw Gold Mining Company and is a member of the board of trustees of Westminster College in Salt Lake City and a trustee and second Vice Presdient of the Northwest Mining Association.  He graduated from the College of Emporia in Emporia, Kansas with a bachelors of science in business.

Company Profile:
About Revett

Revett Minerals is a North American copper and silver producer with a mine, and a large development project located in northwestern Montana, USA.  Our Troy Mine has reserves totaling 16.95 million ounces of silver and 145.1 million pounds of mineable copper as at December 31, 2005. Since acquisition, Revett had maintained the past producing (1981-1993) Troy Mine on a care and maintenance basis. In late-2003 the company began reviewing the feasibility of reopening Troy and in April 2004 decided to put the mine back into production. In December 2004 we produced our first concentrates. Full production at Troy is expected during the second quarter of 2006, with total 2006 production estimated to be 2.9 million ounces of silver and 26.2 million pounds of copper. At full capacity, the Troy Mine is expected to average 3.2 million ounces of silver and 26.4 million pounds of copper production per year.

The Company’s Rock Creek Project is a drilled inferred 136.6 million ton resource grading 1.67 ounces silver per ton and 0.72% copper; containing approximately 229 million ounces of silver and over 2 billion pounds of copper.  Revett received a favorable Record of Decision for the development of the Rock Creek Mine from the U.S. Forest Service, and the Montana Department of Environmental Quality in 2003. The first phase of development will commence in 2006 when we will drive an evaluation adit into the ore body, with the objective of producing a revised technical and economic feasibility study. This phase is expected to take 2-3 years.  Presuming a positive feasibility study, and the successful financing of the capital costs, Revett intends to develop Rock Creek as an approximate 10,000 ton per day, underground mine / conventional mineral flotation processing operation, with estimated annual production of 6 million ounces of silver, and 52 million pounds of copper over the life of the mine.

CEOCFO: Mr. Orchow, Revett has been a public company now for about a year; what was the vision then and where are you now?
Mr. Orchow: “We had been a private company, formed in 1999, that was seeking to finance a future project. We went public in February on the Toronto Exchange and raised about $34.5 million Canadian. We are now waiting to start that new project, called the Rock Creek Project. We received an unfavorable judges ruling that sent the permitting back for reevaluation, so we are still waiting for the go-ahead to begin that project.”

CEOCFO: What is happening while you wait for the reevaluation?
Mr. Orchow: “We have another property, an operating mine called the Troy Mine that we restarted at the end of 2004 and last year we produced copper and silver. We continued to do exploration, which we had talked about on our road show and had extended the life of that mine from 3 years to about 5 years of remaining life, with additional exploration potential. This was announced about a month ago.”

CEOCFO: So you will be doing additional exploration there.
Mr. Orchow: “Yes, we have planned additional exploration for this year.”

CEOCFO: Tell us a little about the workings of the Troy Mine; where it is located, how cost effective is what you are doing there now and is there is room for improvement.
Mr. Orchow: “The deposit was discovered in the early 60’s and it was developed by ASARCO Incorporated in the late 1970’s and started producing in 1981. It produced from 1981 to 1993. It was shut down due to low metal prices. It is an underground copper and silver mine. We purchased the mine in 1999 and financed the restart of it in late 2004. We are still in the start-up phase and are at about 60% of where we want to be producing at; with about 150 people employed there. It is not the lowest cost mine, but in today’s environment it certainly is a significant cash producer.”

CEOCFO: Where are your mines located?
Mr. Orchow: “These properties are located in United States in Northwest Montana. The Rock Creek deposit is located about 20 miles by air from the Troy Mine, is very similar geologically and is about twice the size of the original Troy deposit. The difference between Rock Creek and Troy is that Rock Creek has been in permitting for about 15 years and the environmental community has brought a number of challenges to it. There are three main areas of challenges; the first is that it is in an eco system for the recovery of grizzly bears. The second is that there is a water discharge and the third is that the deposit lies under a wilderness area. Those issues have been studied for over 15 years; they have been looked at every-which-way and concluded by the permitting Agencies that there will be no detriment to the environment.”

CEOCFO: What do you need from the courts to move forward?
Mr. Orchow: “After 15 years and in the permitting process, the lead agency, the U.S. Forest Service, issued us a record of decision for our operating plan. That was administratively appealed by the environmental groups and denied, so their next effort was to go into court. The one thing the court ruled against us on was a biological opinion, prepared by the U.S. Fish and Wildlife Service concerning grizzly bears. That opinion was a non-jeopardy opinion, saying that there would be no jeopardy to the continued existence of the species from the mine operation. The judge was concerned that they didn’t consider the current size of the existing population properly; so he remanded it back to the Fish and Wildlife to do additional work. The service has drafted a new biological opinion that is being reviewed right now and it should be issued shortly. It is my sense from speaking with the agencies that the new opinion will also be a non-jeopardy opinion, when it is reissued.”

CEOCFO: What would you say to those who wonder if it will happen?
Mr. Orchow: “From my point of view it is not if, it is when it will happen. I’ve been in the mining business for about 35 years and I’ve been involved in other permitting issues that have taken over 20 years. There are two things that we need to remember; First is that these are extremely benign deposits to the environment. Second, the world needs these commodities. Given that, these are the sort of deposits that you want to mine. The Rock Creek deposit is very similar to the Troy and it has a 25 years history. It has  operated it for 12 years and it sat for 12 years and there has been no detriment to the environment. We have collected water samples, aquatic sampling and air sampling and there has been no issues.”

CEOCFO: It would be fair to say that although the process at Rock Creek is long, the start-up will come and you know how to deal with the issues.
Mr. Orchow: “Correct!”

CEOCFO: Are you looking at other properties in Montana or in other areas?
Mr. Orchow: “Once we went public and became a known company, a number of opportunities have been brought to us. We’ve looked at many of them and some of them were very far away, even in the Philippines and Australia. Our feeling is that what we would like is something that is similar to what we do, which is copper or silver, and somewhere in our geographic area and time zone. Therefore, we’ve studied a number of opportunities and we are considering a few now. If we find the right fit we are not adverse to going ahead and making a deal for another property or two.”

CEOCFO: Why do you like copper and silver?
Mr. Orchow: “When I started in this business, I actually started in copper, so I understand it and it is one of the basic commodities of a growing global economy. Today, copper is really in demand; fueled by the growth in China and India and we can’t live without it. They have cycles, long cycles and I think that we are at the beginning of a long cycle for copper.”

CEOCFO: Please tell us about the current financial picture of the company.
Mr. Orchow: “We have accomplished two things. We had a separate financing for the start-up of our Troy Mine. That was a royalty based financing from a company named Royal Gold, Inc. (NASDAQ: RGLD). We then financed the first phase of the Rock Creek project through our IPO. Although we have not been able to start the project, we still have the funds for that from the IPO. Therefore, we are sitting with about $11-12 million cash after funding a reclamation trust of $6.5 million for Troy. We have also been spending on engineering and mitigation for Rock Creek. We are generating cash at Troy and increasing production every month as we ramp-up to where we want to be. So we are in a good solid position.”

CEOCFO: Is reaching investors a focus for you?
Mr. Orchow: “We are making an effort at that. As I said, we are a Toronto based company, but we’ve gone to investment shows and visited shareholders. As a matter of fact, I’m setting up a trip right now to Toronto to visit shareholders and potential investors.”

CEOCFO: In closing, why should potential investors be interested in Revett Minerals and what should they realize that may not jump off the page at first glance?
Mr. Orchow: “We serve a need and we have a deposit that is one of the largest undeveloped silver deposits in North America. It is a long life project. It will be about 20 to 25 years of production once we begin producing and will be environmentally benign. Therefore, there is a significant future. What we do we do well and we have opportunities for growth.”


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“When I started in this business, I actually started in copper, so I understand it and it is one of the basic commodities of a growing global economy. Today, copper is really in demand; fueled by the growth in China and India and we can’t live without it. They have cycles, long cycles and I think that we are at the beginning of a long cycle for copper.” - William Orchow does not purchase or make
recommendation on stocks based on the interviews published.