WHITEHORSE, YT, Jan. 7, 2022 /CNW/ - MINTO METALS
CORP. ("Minto" or the "Company") (TSXV: MNTO) today announced
production results for the 12-month period ended December 31st, 2021, a purchase price
deferral and operational guidance for the Calendar Year 2022.
Minto completed 2021 with consolidated production totaling 26
million pounds of payable copper, a 46% increase versus the prior
year. The full-year results were highlighted with a strong finish
in November and December during which the Company delivered an
average of 3,000 tonnes per day of ore processed through the mill
and 6.1 million pounds of payable copper.
|
Twelve months ended
|
|
Metal
|
Dec. 31,
2021
|
Dec. 31,
2020
|
%
Change
|
|
|
|
|
Payable Copper
(million pounds)
|
26.0
|
17.8
|
46%
|
Gold (oz)
|
11,783
|
7,674
|
54%
|
Silver
(oz)
|
135,354
|
67,490
|
101%
|
|
|
|
|
|
Calendar
2021
|
|
|
|
|
|
H1
|
H2
|
Total
|
Payable Copper
(million pounds)
|
11.8
|
14.0
|
26.0
|
|
|
|
|
|
Calendar
2020
|
|
H1
|
H2
|
Total
|
Payable Copper
(million pounds)
|
10.0
|
7.8
|
17.8
|
|
|
|
|
% Increase 2021 vs
2020
|
18%
|
81%
|
46%
|
"Our operation is showing positive momentum thanks to the
efforts of our employees and contractors at our Minto mine located
in the central Yukon. The 2021
copper production is up 46% compared to a year ago. The improved
performance is encouraging and a testament to the drive and passion
to win shown by everyone who works here at Minto" said Chris Stewart, President & Chief Executive
Officer of Minto.
"From the mine's performance to the enhancements we have seen in
our milling operation, we are pleased with the production growth in
2021. I joined Minto in mid-January of 2021, and we are now
starting to see the benefits of the many changes we have made which
will benefit our employees as well as all our stakeholders. I
am optimistic about the future at Minto and look forward to
building stronger relationships with the Selkirk First Nation and
the various Yukon regulatory
agencies.", Mr. Stewart added. "Our goal is to carry the
momentum from 2021 into 2022. All indicators are giving us reasons
to be encouraged about the bright future ahead."
Outlook Guidance -2022
Minto is pleased to announce guidance for 2022 as we continue to
ramp up our ore production throughout the year. We are
committed to a cost control strategy while improving our mine and
milling operations. Capital investment is required for the
development of our assets and we are working closely with our
partners at the Selkirk First Nation and the Yukon Government to
facilitate the permits needed for this. Our goal is to
deliver a high-quality product while protecting the Selkirk First
Nation's land that we operate on.
The following table summarises the production, cost and capital
expenditure outlook for 2022. The plan is to operate the mill
at an average throughput of 3,000 tonnes/day for H1/2022 and 3,250
tonnes/day for H2/2022 as the ore production continues to ramp up
towards our mill's ultimate permitted capacity of 4,200
tonnes/day.
Production and
Cash Costs
|
|
|
Minto
Yukon
|
|
|
|
|
|
|
Copper Production
(million pounds)
|
|
28.0 -
31.0
|
C1 cash cost (USD
/lb)1
|
|
|
|
$2.70 -
$2.90
|
|
|
|
|
|
|
Capital Expenditure
(CAD millions, rounded)
|
|
|
Mine Development (new
areas)
|
$13M
|
|
Vehicle
Lease
|
|
|
$7M
|
|
Sustaining
|
|
|
$16M
|
Exploration (CAD
millions, rounded)
|
|
$6M -
$9M
|
Note: Foreign
Exchange used CDN:USD =
0.81
|
|
|
1)This is
a non-GAAP measure. Please see "Non GAAP" at the end of
this release
|
Permitting
Our previously communicated ore production ramp-up target of
4,000 tonnes/day in 2022 has been delayed as we await the necessary
permits to expand our underground mine operations. As a
result, our production rate has been adjusted down as outlined
above in this release. Executing our "Fill the Mill" strategy
is now expected to occur in 2023.
Other Highlights:
Investment in People
Minto is proud to announce the transition from contractor mining
to Minto-managed mining. On January 1,
2022, for the first time in the history of the Minto mine,
the Company began operating its underground mine operations with
Minto employees. "This change signals a significant
investment in our people and continues our cultural shift to
delivering consistent, improved performance across the business and
we believe our new employees, along with our current employees, are
motivated to safely deliver on our targets for 2022. It is an
exciting time for our company, and I am pleased with the team we
have put in place to share in this great journey," said Mr.
Stewart.
Purchase Price Deferral
Minto is also pleased to announce it has reached an agreement
with Capstone Mining Corp ("Capstone") to defer paying part of
Minto's purchase price obligation. In accordance with the Future
Expenditures Agreement between Pembridge and Minto announced
on December 1st, 2021, payments to Capstone of the
purchase price are to be made by Minto. Of the total purchase
price of USD $20 million, USD
$5 million was paid by Minto on
March 30th, 2021 and the
remaining USD $15 million (with the
contingent requirements having been met) was due in December
2021. Under a new agreement reached with Capstone, the amount
to be paid in December 2021 was
adjusted to USD $10 million which was
paid to Capstone before December
31st, 2021. The remaining USD $5 million is now payable on January 15th, 2023.
Qualified Person
The technical contents of this news release have been reviewed
and approved by Chris Stewart,
P.Eng., President & CEO of Minto and a Qualified Person as
defined by Canadian Securities Administrators National Instrument
43-101 - Standards of Disclosure for Mineral Projects.
Non-GAAP Financial Measure
C1 Cash Costs
C1 cash costs consist of production and selling costs net of
by-product credits and is provided in this news release as it is a
key measure that management uses to monitor and evaluate the
performance of the Company's mining operation. This measure
does not have a standard meaning within GAAP and, therefore amounts
presented may not be comparable to similar data presented by other
mining companies. This performance measure should not be
considered in isolation as a substitute for measures of performance
in accordance with GAAP.
Cash Cost
Calculation
|
Production
Costs (Cost of Production)
|
Less:
Exploration costs
|
Less: Corporate
Costs
|
Less:
By-product credits
|
Total Cash
Costs
|
Cash Costs
CAD/lbs
|
Cash Costs
USD/lbs (CAD/USD FX RATE)
|
About Minto Metals Corp.
Minto owns and operates the producing Minto mine located in the
Minto Copper Belt of the Yukon,
Canada. The Minto mine has been in operation since 2007 with
underground mining commencing in 2014. Since 2007, approximately
500Mlbs of copper have been produced from the Minto mine.
Capstone Mining (previous owners) put the Minto mine into care
& maintenance in 2018 and the mine operations were shut
down. In mid-2019 Minto (formerly Minto Explorations Ltd.)
purchased the Minto mine operation and restarted the mine. The
current Minto mine includes underground mining operations, a
processing plant that produces a high-grade copper, gold and silver
concentrate, and all supporting infrastructure associated with
operating a remote mine located in Yukon. The Minto mine property is located on
the Selkirk First Nation's Territory, sitting about 20 km WNW of
Minto Landing on the west side of
the Yukon River. Minto Landing
is located on the east side of the Yukon River approximately 250
road-km north of the City of
Whitehorse, the capital city of the Yukon.
Forward-Looking Information
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements"), within the meaning of applicable Canadian securities
laws and "forward-looking information" within the meaning of
applicable U.S. securities laws, which we refer to collectively as
"forward-looking statements". Forward-looking statements are
statements and information regarding possible events, conditions,
or results of operations that are based upon assumptions about
future conditions and courses of action. All statements and
information other than statements of historical fact may be
forward-looking statements. In some cases, forward-looking
statements can be identified by the use of words such as "seek",
"expect", "anticipate", "budget", "plan", "estimate", "continue",
"forecast", "intend", "believe", "predict", "potential", "target",
"may", "could", "would", "might", "will" and similar words or
phrases (including negative variations) suggesting future outcomes
or statements regarding an outlook. Forward-looking statements or
assumptions in this press release include, but are not limited to:
statements of production volume, cash costs, capital expenditures,
exploration expenditures, permitting timelines, mill production,
and investment in people.
Such forward looking statements are based on a number of
material factors and assumptions, including, but not limited to:
the accuracy of mineral reserves and mineral resources, grade, mine
life, cash cost, net present value, internal rate of return and
production and processing estimates, and other assumptions,
projections and estimates made, such as the successful completion
of development and exploration projects, planned expansions or
other projects within the timelines anticipated and at anticipated
production levels; that mineral resources can be developed as
planned; interest and exchange rates; that required financing and
permits will be obtained; general economic conditions; that labour
disputes or disruptions, flooding, ground instability, geotechnical
failure, fire, failure of plant, equipment or processes to operate
are as anticipated and other risks of the mining industry will not
be encountered; that contracted parties provide goods or services
in a timely manner; that there is no material adverse change in the
price of copper, gold or other metals; competitive conditions in
the mining industry; title to mineral properties; costs; taxes; the
retention of the Company's key personnel; and changes in
laws, risks related to the direct and indirect impact of
COVID-19 including rules and regulations applicable to
Minto.
Forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause actual results,
performance, or achievements to differ materially from those
anticipated in such forward-looking statements. The Company
believes the expectations reflected in such forward-looking
statements are reasonable, but no assurance can be given that these
expectations will prove to be correct and you are cautioned not to
place undue reliance on forward-looking statements contained
herein. Some of the risks and other factors which could cause
actual results to differ materially from those expressed in the
forward-looking statements contained in this news release, include,
but are not limited to: mineral reserve and mineral resource
estimates may change and may prove to be inaccurate; life of mine
estimates are based on a number of factors and assumptions and may
prove to be incorrect; Minto has a limited operating history and is
subject to risks associated with establishing new mining
operations; sustained increases in costs, or decreases in the
availability, of commodities consumed or otherwise used by the
Company may adversely affect the Company; actual production, costs,
returns and other economic and financial performance may vary from
the Company's estimates in response to a variety of factors, many
of which are not within the Company's control; adverse geotechnical
and geological conditions (including geotechnical failures) may
result in operating delays and lower throughput or recovery,
closures or damage to mine infrastructure; the ability of the
Company to treat the number of tonnes planned, recover valuable
materials, remove deleterious materials and process ore,
concentrate and tailings as planned is dependent on a number of
factors and assumptions which may not be present or occur as
expected; the Company's operations may encounter delays in or
losses of production due to equipment delays or the availability of
equipment; the Company's operations are subject to continuously
evolving legislation, compliance with which may be difficult,
uneconomic or require significant expenditures; the Company may be
unsuccessful in attracting and retaining key personnel; labour
disruptions could adversely affect the Company's operations; risks
related to the Company's use of contractors; the hazards and risks
normally encountered in the exploration, development and production
of copper, gold and silver; the Company's operations are subject to
environmental hazards and compliance with applicable environmental
laws and regulations; the Company's operations and workforce are
exposed to health and safety risks; unexpected costs and delays
related to, or the failure of the Company to obtain, necessary
permits could impede the Company's operations; the Company's title
to exploration, development and mining interests can be uncertain
and may be contested; the Company's properties may be subject to
claims by various community stakeholders; risks related to limited
access to infrastructure and water; the Company's exploration
programs may not successfully expand its current mineral reserves
or replace them with new reserves; the Company's common shares may
experience price and trading volume volatility; the Company's
revenues are dependent on the market prices for copper, which have
experienced significant recent fluctuations; the Company may not be
able to secure additional financing when needed or on acceptable
terms; Company shareholders may be subject to future dilution;
risks related to changes in interest rates and foreign currency
exchange rates; changes to taxation laws applicable to the Company
may affect the Company's profitability; the risks related to the
Company's internal controls over financial reporting and compliance
with applicable accounting regulations and securities laws; the
carrying value of the Company's assets may change and these assets
may be subject to impairment charges; the Company may be liable for
uninsured or partially insured losses; the Company may be subject
to litigation; the Company may be unsuccessful in identifying
targets for acquisition or completing suitable corporate
transactions, and any such transactions may not be beneficial to
the Company or its shareholders; the Company must compete with
other mining companies and individuals for mining interests; and
risks related to information systems security threats; and those
risk factors set out in the Company's listing application dated
November 12, 2021 as filed on
SEDAR.
Although the Company has attempted to identify important factors
that could cause actual results or events to differ materially from
those described in the forward-looking statements, including those
risk factors, you are cautioned that this list is not exhaustive
and there may be other factors that the Company has not identified.
Furthermore, the Company undertakes no obligation to update or
revise any forward-looking statements included in or incorporated
by reference in, this news release if these beliefs, estimates, and
opinions or other circumstances should change, except as otherwise
required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Minto Metals Corp.