(In U.S. dollars, unless noted)
TORONTO, July 28 Copper Mountain Mining Corp
CUM.V plans to spend C$402 million ($394 million) to revive a
copper mine in British Columbia that it expects will produce
nearly 100 million pounds of the metal per year, the company
said on Monday.
The company said production at its Copper Mountain open pit
mine should begin at the end of 2010 with a 35,000
tonne-per-day mill. The project would have an an initial mine
life of 15 years, according to a feasibility study.
The news drove the junior miner's shares up by nearly 6
The construction decision has not formally been approved by
the company's board of directors, but the company has already
ordered equipment, said Don Graham, director of Copper
Mountain's investor relations.
The mine, located near Princeton, British Columbia, about
180 km (112 miles) east of Vancouver, has been owned by several
companies over the past century, and last produced metal in
1996. The mine closures had been due to weak copper prices.
"Now, with copper up into the $3.60-$3.70 (per pound)
range, this makes tremendous sense," Graham said. "It's a lower
grade, but yet bulk tonnage deposit, and all the infrastructure
is there. We've got the mining and environmental permits and
The company based its base-case assumptions on a long-term
copper price of $1.80 per pound.
Copper for September HGU8 delivery was trading at $3.62 a
pound on Monday.
Cash costs per ounce of copper over the life of the mine
are seen at $1.27 a pound, when factoring in gold and silver
by-product that will be used to offset costs.
The deposit has a measured and indicated resource of 1.8
billion pounds of contained copper.
Copper Mountain's shares were up 8 Canadian cents at C$1.52
on the TSX Venture Exchange early on Monday afternoon.
(Reporting by Cameron French; Editing by Peter Galloway)