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Copper Mountain Announces New Life of Mine Plan, Including Proposed 65,000 tpd Mill Expansion

ID: 1562695
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(PresseBox) - Copper Mountain Mining Corporation (TSX: CMMC | ASX:C6C) (the ?Company? or ?Copper Mountain? - https://www.commodity-tv.com/ondemand/companies/profil/copper-mountain-mining-corp/ ) is pleased to announce a new life of mine plan, which includes a proposed mill expansion to 65,000 tonnes per day (?65ktpd Expansion?), for its 75% owned Copper Mountain Mine, located in southern British Columbia. The new life of mine plan increases Copper Mountain?s after-tax Net Present Value (NPV) by over 60% to US$1.0 billion, on higher annual production and lower costs, when compared to the previously published 2019 Technical Report. The 65ktpd Expansion builds upon the 45ktpd mill expansion currently underway.

Copper Mountain has filed a NI 43-101 Technical Report (?2020 Technical Report?) for the new life of mine plan for the Copper Mountain Mine on SEDAR (www.sedar.com). The 2020 Technical Report work was completed at a Pre-feasibility Study level. All Dollars in this press release are United States Dollars. All metrics are shown on a 100% basis.

?The 65ktpd Expansion, which moves the Copper Mountain Mine to about a billion dollars of asset value, clearly underscores the mine?s quality, and our team?s ability to potentially grow reserves and value further,? stated Gil Clausen, Copper Mountain?s President and CEO. ?This mill expansion study builds upon the growth projects that are already underway and illustrates the immense potential that the Copper Mountain Mine provides. In two years, we have more than doubled the mine life, grown the mine?s productive capacity, increased net asset value and significantly decreased cash costs. Following the completion of this 2020 Technical Report, we will further refine the capital estimates of this project in preparation for a development decision.?

Mr. Clausen added, ?All of the deposits at the Copper Mountain Mine remain open and have significant exploration potential to add to our reserve and resource.



Mining & Processing

The Copper Mountain mill flowsheet is currently a conventional two-stage crushing, SAG, pebble crusher, ball milling, and sulphide flotation circuit design. The current capacity supports 40,000 tonnes per day of ore processing.her and cleaner flotation circuit capacity, and electrical system upgrades. The existing SAG mill will be retired. The fourth ball mill, a 22 ft by 38 ft mill, will be installed adjacent to the third ball mill within the existing building. With the addition of the fourth ball mill, the ball milling line will comprise four mills operating in parallel. Two identical 24 ft x 30 ft mills, and two identical 22 ft x 38 ft mills. (See Appendix 2 for the Proposed 65ktpd Process Flowsheet).

The 65ktpd Expansion is a planned plant-wide improvement that increases throughput in addition to:

Reducing operating costs using newer but proven technologies and equipment;

Reducing energy consumption through more efficient grinding unit operations;

Improving flotation performance with substantially more capacity at the rougher and cleaner stages; and

De-bottleneck concentrate dewatering, allowing for more flexibility at high tonnage during high head grade periods.

The 65ktpd Expansion will not require any additional mining fleet, as the existing fleet already produces sufficient ore supply to feed the concentrator at the planned milling rates.

The mine life is estimated to be 21 years, including three years of processing stockpiled ore. The production plan is based on Mineral Reserves only and does not include any other Mineral Resource categories. The Company believes that the potential exists to increase life of mine production further by converting Resources to Reserves as well as increasing resources through further exploration.

Total ore mined is expected to be 400 million tonnes and total waste mined is expected to be 671 million tonnes, with a strip ratio of 1.68. Using average recoveries of 85.4% for copper, 66.1% for gold and 66.2% for silver, total production is expected to be 2.0 billion pounds of copper, 978,000 ounces of gold and 6.7 million ounces of silver.

Capital Costs

The initial capital cost required to increase throughput to 65,000 tonnes per day is estimated to be approximately $123 million, plus a $25 million contingency for a total of $148 million. This includes the installation of the HPGR circuit, fourth ball mill, regrind circuit, verti-mill, additional rougher and cleaner flotation circuits and electrical system upgrades. A breakdown of the initial capital cost items for the 65ktpd Expansion is provided below.

Total life of mine expansionary capital, including the capital for the 45,000 tonne per day mill expansion planned for 2021 and the integration of New Ingerbelle, is estimated to be $204 million.

Total sustaining capital for the life of mine is estimated to be $255 million. The majority of sustaining capital is related to the replacement of mobile mining equipment.

Operating Costs

Total LOM operating unit costs are estimated to be $7.60 per tonne milled, which includes mining cost per tonne milled of $3.70, milling cost per tonne milled of $3.63 and G&A per tonne milled of $0.26.A unit cost breakdown is provided below.

The above costs result in an average C1 cash cost per pound of copper of $1.19 for the first ten years and $1.21 over the life of mine, net of by-product credits.

Economics

The after-tax NPV for the Copper Mountain Mine assuming an 8% discount rate is estimated to be $1.01 billion. The economics are calculated assuming a Canadian Dollar to U.S. Dollar exchange rate of 1.30 to 1 and metal pricing of $3.15 per pound copper, $1,700 per ounce of gold and $22 per ounce of silver. Metal price assumptions are based on 60% bank consensus long-term prices and 40% spot prices.

Mineral Reserve and Mineral Resource

The effective date of the Mineral Reserve and Mineral Resource for the Copper Mountain Mine is as of September 1, 2020 and does not include the recent drilling the Company completed in the second half of 2020. The Company plans on including these drill results in its year end Mineral Reserve and Mineral Resource estimate, which is expected to be announced in the first quarter of 2021.

A summary of the Mineral Reserve and Mineral Resource is provided below. The Mineral Resource is inclusive of the Mineral Reserve.

Competent Persons Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Peter Holbek, B.Sc (Hons), M.Sc., P. Geo. Mr. Holbek is a full time employee of the Company and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ?Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Mr. Holbek does consent to the inclusion in this news release of the matters based on their information in the form and context in which it appears.

Qualified Persons

The Mineral Resource estimate for the Copper Mountain mine was prepared by Mr. Peter Holbek, B.Sc (Hons), M.Sc., P. Geo, who is the Vice President, Exploration of Copper Mountain Mining Corporation. Mr. Holbek serves as the Qualified Person as defined by National Instrument 43-101. Mr. Holbek consents to the inclusion of the mineral resource in this news release, and has approved the mineral resource information included in this news release.

Mr. Stuart Collins, P.E., serves as the Qualified Person as defined by National Instrument 43-101 and is the Qualified Person for information regarding the Copper Mountain Mine?s Technical Information and Mineral Reserve. Mr. Collins is Mine Technical Services Director of Copper Mountain Mining Corporation, and has reviewed and approved the contents of this news release.

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 currently produces approximately 90 million pounds of copper equivalent.?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.

President and Chief Executive Officer

For further information, please contact:

Letitia Wong

Vice President Corporate Development & Investor Relations

Telephone: 604-682-2992

Email: Letitia.Wong(at)CuMtn.com

Website: www.CuMtn.com

In Europe:

Swiss Resource Capital AG

Jochen Staiger

info(at)resource-capital.ch

www.resource-capital.ch

Cautionary Note Regarding Forward-Looking Statements

This news release may contain forward-looking statements and forward-looking information (together, ?forward-looking statements?) within the meaning of applicable securities laws.ng statement, whether as a result of new information, future events or otherwise.



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Date: 11/30/2020 - 17:04
Language: English
News-ID 1562695
Character count: 13119
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Firma: Swiss Resource Capital AG
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Stadt: Vancouver, British Columbia
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