Engineering & Mining Journal

APR 2019

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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Page 9 of 83

REGIONAL NEWS - U.S. & CANADA 8 E&MJ • APRIL 2019 Copper Mountain Has New Plan for British Columbia Properties Copper Mountain Mining has announced a new, integrated life-of-mine production plan for its Copper Mountain properties in southern British Columbia. The plan includes a modest expansion of through- put for the Copper Mountain mill from 40,000 metric tons per day (mt/d) to 45,000 mt/d and integrates production from the New Ingerbelle deposit 1 kilo- meter (km) from current operations. When compared to the previous Cop- per Mountain mine plan, the new plan includes a 102% increase in mineral re- serves, a 27% increase in average copper equivalent production to 116 million lb/y over the fi rst 10 years, a 12-year exten- sion in mine life to 26 years, and a de- crease in C1 cash costs to $1.87/lb. The new plan outlines a phased ap- proach to the investments. The fi rst phase would be the plant expansion, which re- quires installation of a third ball mill. The expansion could be completed as early as the fi rst quarter of 2020 and is forecast to cost approximately $25 million. The second phase would be develop- ment of the New Ingerbelle pit, which would require capital investment of about $23 million. Pit development would re- quire about 24 months to complete. The plan is based on mineral reserves only and does not include other resource categories. The company believes that potential exists to increase production further by converting resources to re- serves as well as by increasing resources through exploration. New Ingerbelle ore would be trucked to the Copper Mountain mill, using the existing mine equipment fl eet. The mill fl owsheet includes primary and secondary crushing, grinding, and sulphide rougher/cleaner fl otation. A new 22-ft x 38-ft, 12.6-megawatt (MW) ball mill would be integrated into the existing grinding circuit, which would support the increase in throughput to 45,000 mt/d. The plan assumes startup of the third ball mill in the second quarter of 2020. The new mill would operate as a ter- tiary grinding circuit, installed after the existing two ball mills, which operate in parallel. The fi nal grind size would be re- duced from 225 µm to 150 µm, allowing for higher fl otation recoveries. Metallurgical testing on the New In- gerbelle ore has yielded positive results. Average life-of-mine copper recovery is expected to be 85.5%, approximately 5% higher than current levels processing Copper Mountain mine ore. Using improved recoveries of 85.5% for copper, 69% for gold, and 69% for sil- ver, life-of-mine production is forecast to total 1.895 billion lb of copper, 982,000 oz of gold, and 7.3 million oz of silver. "The new integrated production plan completely transforms the Copper Moun- tain operations," Copper Mountain Presi- dent and CEO Gil Clausen said. "For mini- mal capital and minimal risk, we have the potential to realize signifi cant value as we expect to increase our annual production, double total life-of-mine production, ex- tend mine life and decrease unit costs. "These growth projects build upon an already solid operating base, allowing us the potential to increase and advance near-term cash fl ow." Ascot Completes Purchase of IDM Mining Ascot Resources Ltd. completed its previ- ously announced acquisition of IDM Min- ing Ltd., creating a high-grade gold and silver development and exploration com- pany in northwestern British Columbia's Golden Triangle. The transaction consol- idates Ascot's Premier gold project and IDM's Red Mountain gold project. "The acquisition of IDM bolsters our goal of creating a company with multiple high-quality, high-grade gold resources based near existing infrastructure," said Derek White, president and CEO of As- cot. "The combined company has a num- ber of development options and synergy opportunities that aligns with our vision of creating low-cost production, and ex- panding resource base through future de- velopment and exploration in one of the best mining districts in the world." Ascot's deposits that comprise the Premier project and Red Mountain proj- ect have a combined 5.55 million met- ric tons (mt) of measured and indicated resources averaging 7.68 grams/mt gold, totaling 1.37 million ounces (oz) gold, with additional inferred resources of 6.35 million mt averaging 7.12 g/mt gold, to- taling 1.45 million oz gold. "The potential synergies between the two asset bases are very signifi cant, and the combined company hosts the best exploration ground for further high-grade discoveries in the Golden Triangle," said Rob McLeod, former president and CEO of IDM Mining. "I look forward to the re- A modest expansion for the Copper Mountain mill (above) and the development of a new pit will extend the life of the mining operations (inset). (Photo: Copper Mountain Mining)

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