VANCOUVER, BC, Nov. 30, 2020 /CNW/ - Copper Mountain
Mining Corporation (TSX: CMMC) (ASX: C6C) (the "Company" or
"Copper Mountain") 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.
Highlights:
Metric
|
Unit
|
2020
Technical
Report
|
After-tax NPV
(8%)(1)
|
$M
|
$1,010
|
Average Annual Copper
Equivalent Production(1,2)
|
Mlbs
|
139
|
Average Annual Copper
Production(2)
|
lbs
|
106
|
Average Annual Gold
Production(2)
|
koz
|
60
|
C1 Cash
Costs(1,2)
|
($/lb)
|
1.19
|
(1)
|
Based on $3.15 per
pound copper, $1,700 per ounce gold and $22 per ounce silver and a
C$1.30 to US$1.00 exchange rate.
|
(2)
|
For the first ten
years, starting in 2021
|
"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. We are steadily
working to unlock the unrealized value and low risk growth
potential at the Copper Mountain Mine and we expect to fund this
production growth with the mine's internal cash flow."
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. The 45ktpd Expansion that
is currently underway will add a third ball mill in parallel with
the two existing ball mills. The 65ktpd Expansion Plan
includes the installation of a High Pressure Grinding Roll (HPGR)
circuit, the addition of a fourth ball mill, a regrind verti-mill,
additional rougher 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). This work will
allow for increased throughput and a grind size P80 of 165 µm.
The 65ktpd Expansion Technical Report assumes construction to
be completed at the end of 2023 for commissioning in the beginning
of 2024.
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. A summary of mining, processing and
production metrics is provided below. A more detailed life of mine
production schedule is available in the 2020 Technical Report on
SEDAR.
Parameter(1)
|
Unit
|
Value
|
Total Ore
Mined
|
kt
|
400,377
|
Total
Waste
|
kt
|
670,802
|
Strip
Ratio
|
w:o
|
1.68
|
Processing Rate
(after year 2024)
|
t/d
|
65,000
|
Total Copper
Produced
|
Mlbs
|
1,979
|
Total Gold
Produced
|
koz
|
978
|
Total Silver
Produced
|
koz
|
6,715
|
Average Annual Copper
Produced (2)
|
Mlbs
|
106
|
Average Annual Gold
Produced (2)
|
koz
|
60
|
Average Annual Silver
Produced (2)
|
koz
|
316
|
Average Cu Head Grade
(2)
|
%
|
0.26%
|
Average Au Head Grade
(2)
|
g/t
|
0.13
|
Average Ag Head Grade
(2)
|
g/t
|
0.70
|
Cu
Recoveries
|
%
|
85.4
|
Au
Recoveries
|
%
|
66.1
|
Ag
Recoveries
|
%
|
66.2
|
Mine Life (including
stockpile years)
|
years
|
21
|
(1)
|
All parameters do
not include 2020.
|
(2)
|
For the first ten
years, starting in 2021
|
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.
Initial 65ktpd
Expansion CAPEX Breakdown
|
$M
|
Direct
Costs
|
|
Crushing, Ore Storage
and Conveying
|
50.0
|
Flotation and
Regrind
|
22.2
|
Grinding
|
16.3
|
Buildings
|
12.6
|
Main
Substation
|
7.8
|
Reagents
|
0.1
|
Direct
Subtotal
|
109.0
|
|
|
Indirect
Costs
|
|
EPCM
|
9.8
|
Project Indirects
|
4.7
|
Indirect
Total
|
14.5
|
Sub-total
|
123.4
|
Contingency
|
24.9
|
TOTAL Initial
CAPEX
|
148.3
|
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. Mining cost per tonne
mined is estimated to be $1.55.
Unit milling costs are estimated to be 25% lower for the
65ktpd Expansion compared to the current 45ktpd mill expansion as a
result of a higher milling rate and lower operating cost of the
HPGR circuit, as compared to the existing SAG mill. A unit cost
breakdown is provided below.
Unit Operating
Costs
|
$ per tonne
milled
|
Mine Cost per Tonne
Milled
|
$3.70
|
Mill Cost per Tonne
Milled
|
$3.64
|
G&A Cost per
Tonne Milled
|
$0.26
|
Total Operating
Cost per Tonne Milled
|
$7.60
|
Notes:
Mining costs are inclusive of costs to rehandle the existing ore
stockpiles.
|
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. A sensitivity analysis on varying copper
prices was completed on the after-tax NPV (8%) and the results are
summarized below.
Copper
prices
|
After-tax NPV
(8%)
|
-10%
|
$809
million
|
$3.15
|
$1,010
million
|
+10%
|
$1,211
million
|
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.
Copper Mountain
Mine Mineral Reserve
|
Category
|
Tonnes
(kt)
|
Cu Grade
(% Cu)
|
Au Grade
(g/t)
|
Ag Grade
(g/t)
|
Cu Pounds
(Mlb)
|
Au Ounces
(koz)
|
Ag Ounces
(koz)
|
Proven
|
|
|
|
|
|
|
|
CMM Total
Pit
|
98,525
|
0.29
|
0.08
|
1.27
|
624
|
249
|
4,010
|
Ingerbelle
Pit
|
58,040
|
0.25
|
0.16
|
0.51
|
324
|
296
|
952
|
Subtotal Pit
Only
|
156,565
|
0.27
|
0.11
|
0.99
|
948
|
545
|
4,962
|
Stockpile
|
52,240
|
0.15
|
0.04
|
0.45
|
177
|
67
|
756
|
Total
Proven
|
208,805
|
0.24
|
0.09
|
0.85
|
1,125
|
612
|
5,717
|
Probable
|
|
|
|
|
|
|
|
CMM Total
Pit
|
118,777
|
0.22
|
0.07
|
0.79
|
565
|
268
|
3,025
|
Ingerbelle
Pit
|
134,757
|
0.23
|
0.14
|
0.46
|
683
|
625
|
1,999
|
Total
Probable
|
253,534
|
0.22
|
0.11
|
0.62
|
1,248
|
892
|
5,024
|
Proven +
Probable
|
|
|
|
|
|
|
|
CMM Total
Pit
|
217,302
|
0.25
|
0.07
|
1.01
|
1,189
|
517
|
7,035
|
Ingerbelle
Pit
|
192,797
|
0.24
|
0.15
|
0.48
|
1,006
|
920
|
2,951
|
Subtotal Pit
Only
|
410,099
|
0.24
|
0.11
|
0.76
|
2,196
|
1,437
|
9,986
|
Stockpile
|
52,240
|
0.15
|
0.04
|
0.45
|
177
|
67
|
756
|
Total
|
462,339
|
0.23
|
0.10
|
0.72
|
2,373
|
1,504
|
10,741
|
1.
|
Joint Ore Reserves
Committee (JORC) and CIM (2014) Definition Standards were followed
for Mineral Reserves.
|
2.
|
Mineral Reserves were
generated using the September 1, 2020 mining surface.
|
3.
|
Mineral Reserves are
reported at a 0.10% Cu cut-off grade.
|
4.
|
Mineral Reserves are
reported using long-term copper, gold, and silver prices of
$2.75/lb, $1,500/oz, and $18.50/oz, respectively.
|
5.
|
An average CMM copper
process recovery at block model domain recovery, gold process
recovery of 65%, and silver process recovery of 70% is based on
geo-metallurgical domains and actual plant values.
|
6.
|
An average Ingerbelle
copper process recovery of 88.5%, gold process recovery of 71%, and
silver process recovery of 65% is based on geo-metallurgical
domains, historical recoveries, and recent testwork.
|
7.
|
Average bulk density
is 2.78 t/m3.
|
8.
|
Stockpile tonnes and
grade based on production grade control process.
|
9.
|
Totals may not add
due to rounding.
|
Copper Mountain
Mine Mineral Resource
|
Category
|
Tonnes
kt
|
Copper
(%)
|
Gold
(g/t)
|
Silver
(g/t)
|
Copper
(Mlb)
|
Gold
(Moz)
|
Silver
(Moz)
|
Measured
|
168,166
|
0.25
|
0.10
|
0.83
|
940
|
0.56
|
4.49
|
Indicated
|
433,989
|
0.22
|
0.10
|
0.66
|
2,097
|
1.39
|
9.14
|
Measured and
Indicated
|
654,395
|
0.22
|
0.10
|
0.68
|
3,214
|
2.02
|
14.39
|
Inferred
|
323,502
|
0.20
|
0.10
|
0.50
|
1,420
|
1.01
|
5.21
|
1.
|
Mineral Resources
were estimated using the September 1, 2020 mining surface for
Copper Mountain Mine.
|
2.
|
Mineral Resources are
constrained by a $3.50/lb Cu pit shell.
|
3.
|
Cut-off grade is
based on copper grade only.
|
4.
|
Mineral Resources are
inclusive of Mineral Reserves, but do not include stockpiled
material.
|
5.
|
Cut-off grades
applied at 0.10% Cu.
|
6.
|
Totals may not add
due to rounding.
|
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. Copper Mountain also has the development-stage
Eva Copper Project in Queensland,
Australia and an extensive 2,100 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.
President and Chief Executive Officer
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. All statements, other than statements of
historical facts, are forward-looking statements. Generally,
forward-looking statements can be identified by the use of
terminology such as "plans", "expects", "estimates", "intends",
"anticipates", "believes" or variations of such words, or
statements that certain actions, events or results "may", "could",
"would", "might", "occur" or "be achieved". Forward-looking
statements involve risks, uncertainties and other factors that
could cause actual results, performance and opportunities to differ
materially from those implied by such forward-looking
statements. Factors that could cause actual results to differ
materially from these forward-looking statements include the
successful exploration of the Company's properties in Canada and Australia, the reliability of the historical
data referenced in this press release and risks set out in Copper
Mountain's public documents, including in each management
discussion and analysis, filed on SEDAR at www.sedar.com.
Although Copper Mountain believes that the information and
assumptions used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed time frames or at all. Except where required by
applicable law, Copper Mountain disclaims any intention or
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or
otherwise.
APPENDIX 1: LIFE OF MINE PRODUCTION PLAN (Excluding Stockpile
Years)
|
Units
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026
|
2027
|
2028
|
2029
|
2030
|
2031
|
2032
|
2033
|
2034
|
2035
|
2036
|
2037
|
2038
|
Ore mined
|
kt
|
21,929
|
17,816
|
30,243
|
33,076
|
14,552
|
20,293
|
23,011
|
31,299
|
29,837
|
30,532
|
25,263
|
21,048
|
23,130
|
12,035
|
15,741
|
25,037
|
18,959
|
6,576
|
Tonnes mined -
waste
|
kt
|
48,483
|
70,437
|
51,782
|
29,539
|
38,883
|
39,744
|
37,275
|
33,818
|
34,973
|
30,170
|
30,389
|
30,828
|
27,149
|
37,264
|
32,838
|
31,442
|
40,538
|
25,251
|
Total material
mined (excl. rehandle)
|
kt
|
70,412
|
88,252
|
82,025
|
62,615
|
53,435
|
60,036
|
60,286
|
65,117
|
64,810
|
60,702
|
55,652
|
51,876
|
50,280
|
49,298
|
48,579
|
56,479
|
59,497
|
31,827
|
Stripping
ratio
|
w:o
|
2.21
|
3.95
|
1.71
|
0.89
|
2.67
|
1.96
|
1.62
|
1.08
|
1.17
|
0.99
|
1.20
|
1.46
|
1.17
|
3.10
|
2.09
|
1.26
|
2.14
|
3.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes milled per
day
|
TPD
|
42,016
|
45,000
|
45,000
|
65,000
|
65,000
|
65,000
|
65,000
|
65,000
|
65,000
|
65,000
|
65,000
|
65,000
|
65,000
|
65,000
|
65,000
|
65,000
|
65,000
|
65,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head Grades
Milled:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
|
%
|
0.34%
|
0.31%
|
0.26%
|
0.28%
|
0.29%
|
0.20%
|
0.23%
|
0.25%
|
0.24%
|
0.25%
|
0.22%
|
0.24%
|
0.24%
|
0.19%
|
0.24%
|
0.33%
|
0.19%
|
0.17%
|
Gold
|
g/t
|
0.09
|
0.07
|
0.15
|
0.17
|
0.13
|
0.10
|
0.12
|
0.14
|
0.12
|
0.14
|
0.13
|
0.12
|
0.07
|
0.06
|
0.07
|
0.09
|
0.07
|
0.05
|
Silver
|
g/t
|
1.62
|
1.49
|
0.67
|
0.67
|
0.85
|
0.41
|
0.46
|
0.48
|
0.43
|
0.44
|
0.44
|
0.50
|
0.85
|
0.53
|
1.19
|
1.81
|
0.54
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
|
%
|
81.6%
|
84.5%
|
88.1%
|
88.0%
|
86.6%
|
85.7%
|
85.2%
|
87.7%
|
87.3%
|
88.0%
|
87.8%
|
87.2%
|
84.4%
|
82.0%
|
82.5%
|
85.2%
|
84.5%
|
82.6%
|
Gold
|
%
|
63.0%
|
63.1%
|
70.1%
|
70.0%
|
66.9%
|
68.7%
|
69.7%
|
71.0%
|
70.2%
|
69.7%
|
69.2%
|
66.5%
|
63.0%
|
63.0%
|
63.0%
|
63.0%
|
63.0%
|
63.0%
|
Silver
|
%
|
67.0%
|
67.0%
|
65.2%
|
65.3%
|
66.0%
|
65.6%
|
65.3%
|
65.0%
|
65.2%
|
65.3%
|
65.4%
|
66.1%
|
67.0%
|
67.0%
|
67.0%
|
67.0%
|
67.0%
|
67.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recovered
Metal:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
|
Mlbs
|
92.6
|
93.6
|
84.1
|
129.1
|
129.3
|
90.4
|
103.5
|
114.1
|
111.7
|
114.8
|
102.0
|
107.7
|
103.8
|
83.2
|
105.5
|
148.5
|
82.6
|
71.4
|
Gold
|
Koz
|
28
|
24
|
56
|
92
|
68
|
54
|
65
|
76
|
66
|
73
|
66
|
60
|
32
|
29
|
32
|
42
|
34
|
26
|
Silver
|
Koz
|
534
|
528
|
232
|
332
|
427
|
207
|
228
|
237
|
215
|
221
|
220
|
252
|
434
|
272
|
608
|
928
|
274
|
238
|
APPENDIX 2: Proposed Flowsheet for 65ktpd Mill
Expansion
View original content to download
multimedia:http://www.prnewswire.com/news-releases/copper-mountain-announces-new-life-of-mine-plan-including-proposed-65-000-tpd-mill-expansion-301181519.html
SOURCE Copper Mountain Mining Corporation