Copper Mountain Mining has launched a new integrated life of mine production plan for its Copper Mountain Properties in British Columbia.
Copper Mountain Mining (TSX:CMMC,ASX:C6C) has launched a new integrated life of mine production plan for its Copper Mountain Properties in British Columbia.
The new plan comes with an expansion to the company’s Copper Mountain mine mill to 45,000 tonnes per day, and will integrate production from New Ingerbelle.
As stated in the press release:
The results include a 102 percent increase in mineral reserves, a 27 percent increase in average annual copper equivalent production to 116 million pounds (over the first ten years), a 12-year extension in mine life to 26 years and a decrease in C1 cash costs to US$1.87 per pound produced, when compared to the previous CMM production plan included in the Company’s 2018 NI 43-101 Technical Report for the Copper Mountain Mine, filed in November 2018.
The Integrated Production Plan outlines a phased approach to the investments in the mill expansion and New Ingerbelle development. The first phase would be the plant expansion, which requires the installation of a third ball mill. The plant expansion could be completed as early as the first quarter of 2020 and is forecasted to cost approximately US$25 million. The second phase would be for the development of New Ingerbelle, which requires capital of about US$23 million. The after-tax NPV (8 percent) of the Integrated Production Plan for the Copper Mountain Mine, including both growth projects, is approximately US$619 million.
Gil Clausen, Copper Mountain President and CEO, commented:
“The new Integrated Production Plan completely transforms the Copper Mountain operations. For minimal capital and minimal risk, we have the potential to realize significant value as we expect to increase our annual production, double total life of mine production, extend the mine life and decrease unit costs. These growth projects build upon an already solid operating base allowing us the potential to increase and advance near term cash flow. Over the next ten years the project has no negative cash flow years, and the company is actively reviewing the replacement of the existing debt packages that would allow for significant cash to be available from cash flows that would enhance overall liquidity for the company.”