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Copper Mountain Mining Reacts to Covid-19 Related Market Uncertainty, Revises Mine Plan and Project Schedule to Lower Cost and Risk

ID: 1556773
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(PresseBox) - Copper Mountain Mining Corporation (TSX:CMMC | ASX:C6C)https://www.commodity-tv.com/play/copper-mountain-mining-q4-and-full-year-2019-numbers-published/ ) has revised its mine plan and project schedule at its Copper Mountain Mine, located in Southern British Columbia, with the objective of maintaining solid positive margins and cash flow in response to current market conditions and near-term copper price uncertainty as a result of the Coronavirus impact to metal prices.

Deferral of Ball Mill #3 installation capital expenditures, saving US$22 million in 2020.

Reducing operating costs by re-sequencing short term production to lower cost mine phases.

Preserving high grade ore in Pit #3 scheduled for mining in 2020 to now be mined in 2021 for the benefit of expected higher metal prices in future and to match deferred Ball Mill #3 expansion capital expenditures.

These actions allow the Company to maintain solid cash flow margins at the mine and run sustainably in the current low copper price environment, without any sacrifice to the long term mine plan. In addition, the revised mine plan also allows the Company to continue to be able to fund the mill expansion project internally.

?We are committed to protecting our cash flow and minimizing costs given the low and volatile copper price environment that we are currently operating in as a result of the Coronavirus impact,? said Gil Clausen, Copper Mountain?s President and CEO. ?We have revised our mine plan to protect and grow cash margin so that we are able to comfortably meet all our obligations, including debt service, while continuing with key projects including the installation of the Direct Flotation Reactors. ckly in response to changing market conditions and metal prices.?

Mr. Clausen added, ?In periods of low metal prices such as today, we will be disciplined and orderly in our development and take a prudent approach to cash management. currently implemented is sustainable longer term at these low copper prices, we believe this market uncertainty is short term and fully anticipate the copper price to recover.?



Revised Mine Plan

The Company has modified the Copper Mountain mine plan for the current low copper price environment. Copper Mountain is cutting the mining rate by approximately 25% to 120,000 to 160,000 tonnes per day for the remainder of 2020 from approximately 200,000 tonnes per day. The Company is focusing on mining the lower cost areas in the central and north phases of the main pit in order to maintain positive margins.

The Company will reschedule the mining of the higher grade ore originally planned in 2020 for 2021, which should better match higher copper prices and therefore support the funding of the mill expansion project.

These initiatives allow the Company to maintain solid positive margins at lower metal prices in 2020 and maximize cash flow in 2021 when prices are expected to recover.

Project Update

The mill expansion project at the Copper Mountain Mine is planned to bring plant capacity to 45,000 tonnes per day from 40,000 tonnes per day. to complete the installation of the DFRs is approximately US$2.3 million.

The second stage of the mill expansion project includes the installation of the third ball mill. The Company has slowed down this stage of the project to defer approximately US$22 million capital originally planned for 2020. The Company has maintained long lead item expenditures that are critical to the project to allow for rapid restart.

Updated Guidance

The Company?s revised 2020 production and cost guidance is provided below.

About Copper Mountain Mining Corporation:

Copper Mountain?s flagship asset is the 75% owned Copper Mountain mine located in southern British Columbia near the town of Princeton. The Copper Mountain mine produces on average approximately 100 million pounds of copper equivalent per year with a large resource that remains open laterally and at depth. Copper Mountain also has the permitted, development-stage Eva Copper Project in Queensland, Australia and an extensive 4,000 km2 highly prospective land package in the Mount Isa area. Copper Mountain trades on the Toronto Stock Exchange under the symbol ?CMMC? and Australian Stock Exchange under the symbol ?C6C?.

Additional information is available on the Company?s web page at www.CuMtn.com.

On behalf of the Board of

COPPER MOUNTAIN MINING CORPORATION

?Gil Clausen?

Gil Clausen, P.Eng.

Chief Executive Officer

For further information, please contact:

Letitia Wong, Vice President Corporate Development & Investor Relations

604-682-2992 Email: letitia.wong(at)cumtn.com

Dan Gibbons, Investor Relations 604-682-2992 ext. 238 Email: Dan.Gibbons(at)CuMtn.com

Website: www.CuMtn.com

In Europe:

Swiss Resource Capital AG

Jochen Staiger

info(at)resource-capital.ch

www.resource-capital.ch

Note:t metal prices and anticipated costs and expenditures. Guidance involves estimates of known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different. Readers are referred to the documents, filed by the Company on SEDAR at www.sedar.com, specifio any forward-looking statement.



More information:
http://https://www.realwire.com/releases/ProLabs-receives-the-2020-Lightwave-Innovation-Award https://



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Date: 03/10/2020 - 16:09
Language: English
News-ID 1556773
Character count: 2410
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Firma: Swiss Resource Capital AG
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Stadt: Vancouver, B.C.
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