Impressive Annual Output For Copper Mountain Mining
How Copper Mountain Mining plans to increase output for investors.
Copper Mountain Mining Corporation (TSX: CMMC) is a Canadian based mining company. Its flagship asset is the Copper Mountain mine located in Southern British Columbia, near the town of Princeton.
The company has a strategic alliance with Mitsubishi Materials Corporation, which owns 25% of the mine. The Copper Mountain mine produces about 100 million pounds of copper equivalent per year, including significant gold and silver credits. Then, they ship it all to Japan for smelting in one of Mitsubishi’s copper smelters.
While the Copper Mountain mineral claims cover ~18,000 acres, the site has a large resource of copper that remains open laterally and at depth.
A conventional open pit, truck and shovel operation, the mine presents a significant exploration potential that the company plans to explore over the next few years.
The strategy is to divide the mining into multiple development phases, with sequential push-backs in each one of the three main pit areas.
As a result, this sequence will maximize the discounted cash flow based on the ore value, which reflects in the planned pit phases.
Furthermore, to maximize the profit in the initial years, the company is processing ore greater than 0.21% Cu.
But, at the same time, ore that is less than 0.21% Cu, but greater than 0.1% Cu, is being mined and stockpiled (low-grade stockpile) for processing in later years.
Copper Concentrates Production
The mine utilizes a conventional crushing, grinding, and flotation to produce copper concentrates with gold and silver credits.
While the facility is designed to operate 24 hours per day, 365 days per year with a 92% mechanical availability, they have included a pre–scheduled downtime for equipment maintenance.
Once processed, the company exports the concentrate containing the metals overseas to Japan. There, MMC processes it at one of its smelters to recover the copper, gold and silver.
The company has an off take agreement with MMC. As a result, MMC has agreed to purchase 100% of the projects concentrate at LME spot rates at the time of settlement.
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