|Copper Mountain Overview
Mineral Resource and Mineral Reserve Estimation
Copper Mountain Mining Corporation (TSX:CUM) is a Canadian based, high growth mining company focused on adding value through successful exploration, project development, efficient operations, and opportunistic acquisitions. Maintaining a low risk profile through project diversification, astute financial management and operating in secure jurisdictions are key priorities for Copper Mountain's Management team.
Copper Mountain’s flagship asset is the 75% owned 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 the remaining 25%. The Copper Mountain mine commenced production in the summer of 2011, continued to improve its operations during the year, and attained design capacity in the summer of 2012. The 18,000 acre site has a resource of approximately 5 billion pounds of copper and remains open laterally and at depth. The mine has significant exploration potential that will need to be explored over the next few years to fully appreciate the properties' full development potential.
Copper Mountain Video Presentation
The Copper Mountain mine mineral reserves are as at December 31, 2013. The proven and probable reserves as of December 31, 2013 are tabulated in Table 1 below and are NI 43–101 compliant.
The mineral reserves stated above are contained within the mineral resources indicated in Table 2 below:
The Copper Mountain Mine site covers approximately 18,000 acres and consists primarily of 135 crown grants, 176 mineral claims and 14 mining leases. Copper Mountain is located in an area with well–developed infrastructure. The property is accessible by a combination of highways and paved roads, and it is close to the port of Vancouver that provides service for shipment of copper concentrates. The mine is a 20–minute drive from local communities that provide goods, services and personnel.
The development concept is fairly straightforward; the Company is combining three existing open pits into one large super pit over time. The mine has a brand new mobile mining fleet consisting of two Komatsu PC 8000 hydraulic shovels, thirteen 240 ton Komatsu 830E haul trucks, one Komatsu WA 1200 loader, two PV271 Atlas Copco rotary drills, one PV351 Atlas Copco rotary drill, and a fleet of support equipment. In addition, the mine acquired an Ex 5500 Hitachi hydraulic shovel, five 260 ton haul trucks, and a PV 351 drill.
The mine utilizes a conventional crushing, grinding, and flotation to produce copper concentrates with gold and silver credits. The mine processing plan focuses on processing the higher–grade ore in the first twelve years, with lower grade material being sent to stockpiles for blending and processing later in the mine's life. The facility is designed to operate 24 hours per day, 365 days per year with a 92% mechanical availability including pre–scheduled downtime for equipment maintenance. Concentrates are exported via the port of Vancouver to Mitsubishi smelters in Japan for treatment and sale.
The company has an off take agreement with Mitsubishi Materials Corporation ('Mitsubishi'), where Mitsubishi have agreed to purchase 100% of the projects concentrate at LME spot rates at the time of settlement.
The Copper Mountain land package is over 18,000 acres with multiple prospective targets in and around the property. In 2008, the company succeed in finishing one of the largest drill programs in Canada (106,000 meters) and increased the resource estimate by 45% to 5 Billion pounds of copper. The goal of the program was achieved when the results confirmed continuity of mineralization between the pits. This identified new merged pit — known as the “Super Pit” — allows for a bigger, wider and deeper to access additional mineralization at depth.
In addition to the current reserves, significant exploration upside still exists on the Copper Mountain project. Exploration has been a successful endeavor onsite for nearly 100 years and the company is confident that it will continue to be so. The aim of the exploration program is to discover additional resources as numerous untested targets have been identified by a high resolution Titan 24 survey that was conducted in 2007. Interpretation of the geophysical properties is consistent with the geological model of hydrothermal feed that mineralization zones remain open in both directions along the trend lines and at depth.
The diagram below is a 2D cross section of the 3D chargeability model. Copper Mountain’s investment decision was based on the super pit outline at just over 200 meters. The Current mine plan merely scratches the surface of the visible anomalies that extend to depth. Copper Mountain will continue to test these deep anomalies and sees “blue sky” potential to develop a world class deposit upon successful proof of mineralization below the planned super pit outline.
Copper Mountain Mining Corp. strives to pursue sustainable development in its approach to business. It understands that its success depends on its ability to respect and protect the environment and enhance benefits to nearby communities.
It strives to be good neighbors and understand that its relationship with people, communities and society is one of mutual support and interdependence.
Share Structure (as at April 2014)
JAMES C. (Jim) O'ROURKE, P.ENG.
Chief Executive Officer
Jim graduated in 1964 with a B.A.Sc. degree in Mining Engineering from the University of British Columbia. He gained valuable mine development and operating experience while involved in the start-up phase of five major mines over 14 years with Placer Development Limited. Jim has more than 30 years of hands-on experience in mine evaluations, financing development, marketing and operations in Canada, the United States, South America and the Philippines. As President of Princeton Mining Corporation (1987-1997), he was responsible for the acquisition of the Similco open pit copper mine; the evaluation, financing and development of the Cassiar underground block cave mine; and the acquisition, evaluation, financing and development the Huckleberry open pit copper mine in northern British Columbia. The Huckleberry project was completed on schedule at its budgeted cost of $140 million.
Currently, Jim is President of Orclann Investments Inc., a private investment company, Chairman of Compliance Energy Corporation, Former President of Huckleberry Mines Limited and a director of numerous public and private companies in mining and property development. Jim has served as a director of the Mining Association of Canada (1987-1990), the Vancouver Board of Trade (1990) and Chairman (1992) and Director (1987-Present) of the British Columbia Mining Association. During 2012, Jim was the inducted into the Canadian Mining Hall of Fame for his lifetime achievements to the overall benefit of the Canadian Mineral industry. Jim is also the 2011 recipient of the Order of British Columbia, the recipient of the Mining Person of the Year award for British Columbia in 2010, and the 2005 recipient of the Edgar A. Scholz Medal for Excellence In Mine Development in British Columbia and the Yukon.
RODNEY A. (Rod) SHIER, CA
Chief Financial Officer
Rod graduated from the University of British Columbia in 1986 with a Bachelor of Commerce degree and earned his Chartered Accountant designation in 1989 while articling at the international accounting firm of PricewaterhouseCoopers where he also worked overseas for two years. Mr. Shier has over fifteen years experience as a corporate officer and director to a number of publicly–traded mining companies, and has experience in raising over $500 million in debt and equity financing transactions. Mr. Shier’s responsibilities include all aspects of the Company’s financial operations, controls and financial disclosure, as well as maintaining the Company’s corporate records, coordinating Board and management meetings and providing support to other members of the senior management team and the Board, in addition to overseeing all aspects of the Company’s investor relations activities. Rod is a member of the Institute of Chartered Accountants of British Columbia.
PETER HOLBECK, B.Sc. (Hons), M.Sc., P.Geo.
Vice President, Exploration
Peter graduated from the University of British Columbia with a bachelors degree in Science (hons) in 1981, and a Masters of Science in 1988. He has 30 years' experience in mineral exploration and mine development. Prior to joining Copper Mountain Mining, Peter served as Vice President, Exploration for Atna Resources Ltd. for six years and prior to that as Exploration Manager and Mine Geologist for Princeton Mining Ltd. From 1984 to 1993, he was employed as senior exploration geologist for Esso Minerals Canada and then Homestake Canada Ltd.
WILLIAM (BILL) MRACEK, P.Eng.
Vice President, Mining
Graduated from University of Saskatchewan with a Bachelorof Engineering degree in Mechanical Engineering and is a professional engineer registered in the province of Ontario. Has 40 years of practical and management experience in both undergroundand surface mines across Canada. Prior to Copper Mountain he was Vice President and General Manager at Thompson Creek’s Endako mine and Vice President and General Manager for Huckleberry Mines Ltd.
J. PETER CAMPBELL, B.Sc.
Environmental Consultant (formerly Vice President, Environmental)
Peter graduated from the University of British Columbia with a B.Sc. in Marine Biology in 1976 and has over 30 years experience in environmental and permitting in the mining industry in British Columbia, the Yukon and the Northwest Territories. Prior to joining Copper Mountain Mining, Peter served as Vice President, Environmental, Government and First Nations Affairs with bcMetals Corporation. He was responsible for managing the environmental affairs of the Red Chris Project following the resumption of bcMetal’s activities on the property in August 2003. Peter also managed the environmental assessment and permitting process for the Huckleberry Mine, which is a 20,000 tpd open pit copper mine, and the Similco Mine in the early 1990s.
MARIN KATUSA, B.Sc.
With a background in Mathematics, Mr. Katusa left teaching secondary and post–secondary mathematics to pursue portfolio management within the resource sector. He is regularly interviewed on national and local television channels in North America such as the Business News Network (BNN) and many other radio and newspapers for his opinions and insights regarding the resource sector. A regular part of his due diligence process for Casey Research includes property tours, which has resulted in him visiting hundreds of mining and exploration projects all around the world. He has been a director of Copper Mountain Mining since early 2007. Mr. Katusa is a citizen and resident of Canada.
JOHN TAPICS, P.Eng.
Mr. Tapics graduated in 1975 with a B.Sc degree in mining engineering from Queen’s University and has over 25 years of mine planning and operation experience. Since November 2005, Mr. Tapics has been President and Chief Executive Officer of Compliance Energy Corporation, a mining company. Mr. Tapics became a director of Compliance Energy Corporation in April 2006. From October 2001 to February 2005, Mr. Tapics held the positions of President and Chief Executive Officer of the Alberta Electric System Operator and the Balancing Pool of Alberta, statutory corporations responsible for operating the electrical system of Alberta and managing certain pooled purchase arrangements on behalf of Albertans.
Allan Cloke is a senior executive with over thirty years' experience in the mining service and supply industry. Prior to joining the board of Copper Mountain Mining he was President and CEO of Transwest Dynequip Ltd. (TDL), the leading Komatsu Mining distributor in Western Canada, employing 300 and generating sales of $130 million. In addition to providing service to the majority of metal and coal mines in British Columbia, TDL, under the direction of Mr. Cloke, became the major supplier of mining trucks, cable shovels, hydraulic shovels and dragline parts and service to the Alberta oil sands. He has extensive expertise in equipment selection, purchase and performance in large-scale open pit materials handling.
CARL RENZONI, B.Sc. (Hons.)
Mr. Renzoni is a retired investment banker who worked at BMO Nesbitt Burns Inc. from June 1969 and more recently as a Managing Director up until his retirement in November 2001. Mr. Renzoni brings over 30 years of experience in the securities business specializing in the mining industry and has extensive knowledge of all aspects of corporate finance including mergers and acquisitions. Mr. Renzoni was a director of: Meridian Gold Inc until its takeover by Yamana Gold Inc in October 2007 and was a Director of Peru Copper until its takeover by the Aluminum Corporation of China for $840 million in June 2007. Mr. Renzoni is a Director of Yamana Gold Inc since October 2007 and a Director of International Molybdenum since May 2005. Mr. Renzoni received an Honours Bachelor of Science degree in Geology from Queen's University in Kingston, Ontario in 1963. Mr. Renzoni is a citizen and resident of Canada.
BRUCE AUNGER, CA
Mr. Aunger is a Chartered Accountant and senior executive with proven leadership, team building skills with a track record of success. Mr. Aunger is Chief Financial Officer and Executive Vice-President of Madison Venture Corporation and has been since 1988. Mr. Aunger serves as Secretary of Glacier Media, Inc. and GVIC Communications Corp. He was employed by Arthur Andersen, Chartered Accountants, for 11 years and served as a partner for 7 years. He has many years experience in the accounting, financial, taxation and financing fields. Mr. Aunger has been an Independent Director of Glacier Media, Inc. since April 28, 2000. Mr. Aunger obtained a BA degree in Commerce from Simon Fraser University.
ROMAN SHKLANKA, Ph.D. Geo., B Com.
Roman received his Doctorate in geology from Stanford University and a Master of Arts and Bachelor of Commerce degrees from the University of Saskatchewan. He is a Fellow of the Geological Association of Canada and a member of the Canadian Institute of Mining and Metallurgy. Roman is an international mineral explorationist with more than 40 years experience in the mining industry. He has been successful in identifying and developing major deposits around the world and was the PDAC’s 2006 co-receiver of the Viola Macmillan Developer’s Award.
From 1969 to 1990, Roman was with the Placer organization, working in a variety of capacities, including General Manager of Exploration for Placer Development Ltd. And Vice President for Exploration for Placer Dome Inc. Roman was also associated with Sutton Resources Ltd. As Vice Chairman (1993-1995) and Chairman (1995-1999) until the company was acquired by Barrick Gold Corp. He was also Chairman of Canico Resource Corp., which was developing one of the world’s major nickel deposits when it was acquired by CVRD in 2005. Currently, Roman is Chairman of Polaris Minerals Corporation (T.PLS), International Barytex Resources Ltd. (V.IBX), Kobex Resources Ltd. (V.KBX) and Pacific Imperial Mines (V.PPM).
ROBERT J. (BOB) YOUNG, B.Sc. Geo.
Bob graduated in 1962 with a B.A. Sc. Degree in geological engineering from the University of British Columbia. He joined Placer Development in 1960 and spent 32 years with that company. His first 17 years with Placer were spent doing mine geology, both underground and open pit, as well as gaining experience in mine operations and evaluation. He then left mine operations and went into exploration, working mostly on target evaluations and as a project manager in South America, Africa and Southeast Asia. Bob left Placer in 1992 to join Teck Corporation as manager of its South American office in Santiago, Chile. Four years later, he returned to Teck’s Vancouver office to work on international evaluations until his retirement in June 1999.
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