|Copper Mountain Mining Corporation TSX:CMMC | ASX:C6C
Copper Mountain Business Strategy
Copper Mountain’s 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 who owns 25% of the mine. The Copper Mountain mine has a large resource of copper that remains open laterally and at depth. This significant exploration potential is being explored to maximize the property’s full development potential. Copper Mountain’s Cloncurry project in Queensland, Australia, includes the development-ready Eva Copper Project and an extensive exploration potential within the Company’s 379,000 hectare highly prospective land package.
Copper Mountain - Working Towards Mine #2 and Next Major Discovery
Copper Production: 80 million pounds of copper (+/- 5%)
Mill Throughput: 40,000 tpd
Mill Feed Grade: 0.31% copper Cu
Planned Mining Rate: 190,000 tonnes per day
Q1, 2018 Production Results
23.2M Lbs Copper Equivalent includes:
19.9M Lbs Copper
6,070 oz Gold
77,900 oz Silver
Q2, 2018 Production Results
23.1M Lbs Copper Equivalent includes:
20M Lbs Copper
6,500 oz Gold
68,400 oz Silver
H1, 2018 Production Results
46M Lbs Copper Equivalent includes:
39.9M Lbs Copper
12,600 oz Gold
146,300 oz Silver
Crushing Circuit at Copper Mountain Mine. Large green building on the left is the world’s largest cone crusher
Copper Mountain’s business strategy continues to unfold as planned:
- We have an efficient and strong operational base from which to grow.
- Organic Growth: We are currently underway on Phase 2 of a 3 Phase drilling program at the New Ingerbelle deposit. See Exploration below.
- In M&A news, Copper Mountain acquired Altona Mining Limited of Australia in April, 2018.
As part of the acquisition, the Company issued 0.0974 of a Copper Mountain share for each Altona ordinary share, resulting in a total of 53,538,984 Copper Mountain common shares being issued, of which 44,368,605 will trade as CHESS Depository Instruments on the Australian Stock Exchange under the symbol C6C.
As a result of the acquisition, Copper Mountain has now added to the Copper Mountain Group 100% of Altona’s assets which include $30 million in cash, a permitted development project in Queensland, Australia and a large mineral land tenure position in a highly prospective area in Queensland, Australia, a mining friendly jurisdiction.
In conjunction with this transaction, the Company has added Altona’s Managing Director, Alistair Cowden, to the Board of Directors.
New Ingerbelle Deposit at Copper Mountain Mine
On June 7, 2018, Copper Mountain announced that it has commenced drilling at the New Ingerbelle deposit at the Copper Mountain Mine, located near Princeton in southern British Columbia. This Phase 2, 10,000m drill program has been designed to follow up on the successful Phase 1, 2017 drilling program which has validated historical data and confirmed that mineralization is open both laterally and at depth (see News Release Feb. 1, 2018). The objectives of the program are to continue to expand the New Ingerbelle resource area and to convert inferred resources to Measured and Indicated status. A total of 30 holes are planned and the total results from this summer program are expected in late Q3 with partial drill results expected throughout.
New Ingerbelle has never been included in the mine plan of the Copper Mountain Mine, nor has the Company reported any New Ingerbelle Mineral Reserves. Its resource categories are currently being updated with the addition of the Phase 1 2017 drill data and will be further updated after the completion of this phase 2 program. The average Cu Eq** grade for 35 significant drill intersections from last year’s Phase 1 program (see News Release Feb. 1, 2018) is 0.48% (0.34% Cu, 0.70g/t Ag and 0.22g/tAu ).
The Company’s objective under a three phase program at New Ingerbelle is to outline sufficient resources to form the basis of a Feasibility Study on the development potential of this historic producing mine. The Company’s target is to add a minimum of 150M tonnes of Measured and Indicated resources in order to commence that study.
Exploration in Australia
Eva Copper Project and Cloncurry Project, Australia
Copper Mountain announced, May 24, 2018, that the Board has approved a $5 million budget for its Cloncurry project located in Queensland, Australia. Planned work programs will include follow-up drilling on discoveries made in 2017, testing of new targets and supporting works for the active Full Feasibility Study on the proposed Eva Copper Mine, which is compliant with NI 43-101.
Copper Mountain’s acquisition of Altona Mining Ltd (Australia) was completed in April 2018 (see news release dated April 18, 2018). This transaction resulted in the acquisition of 100% of Altona’s assets including $30 million in cash, a permitted development project (Eva Copper Project) and a substantial exploration tenement portfolio (397,000 hectares) located in the highly prospective Mount Isa area in Queensland. This province is one of the world’s premier base metal camps with mining continuing uninterrupted since discovery of copper and gold near Cloncurry in the 1860’s.
Altona Mining’s 2017 exploration drilling program, which was shallow and reconnaissance in nature, tested several significant copper-in-soil anomalies at the Companion, Veiled and Quamby prospects (as released by Altona Mining Limited on February 8, 2018). These prospects add to an emerging cluster of copper-gold discoveries located 30km south of the Company’s proposed Eva Copper Mine.
Highlights of the 2017 drilling program reported in the Altona presss release of February 8, 2018 include:
Notable were the higher gold ratios compared to deposits included in the mine plan for the Eva development. High silver values at Quamby and high cobalt values at Veiled were also recorded.
2018’s exploration campaign includes drilling at the Companion and Veiled prospects and will aim to extend previously encountered mineralization and begin towards definition of an NI 43-101/JORC Code compliant Mineral Resource. Additional drilling is planned for the as yet untested Matchbox prospect, located approximately 10 kilometers north of the Companion prospect. The Company’s regional drilling objectives will aim to evaluate prospects which remain untested by drilling.
Ground based Induced Polarity (IP) geophysical surveys will be deployed to guide future drilling at the Reaper, Brolga and Harvest prospects. Systematic regional and detailed soil geochemistry will be executed across regional tenure to develop a new pipeline of targets.
Shares Outstanding 187.9 million
Options Outstanding 10.0 M
Fully Diluted Shares Outstanding 203 million
Market Capitalization (Apr. 18, 2018) $253.7M
5 Year Hi - Lo Trading Range ~$4.00 – $.33
JAMES C. (JIM) O'ROURKE, P.ENG., OBC.
Graduated in 1964 with a B.A.Sc. degree in Mining Engineering from the University of British Columbia. Jim has more than 40 years of hands–on experience in mine evaluations, development, project financing, marketing and operations in Canada, the United States, South America and the Philippines. Jim is Chief Executive Officer, Director and a founding shareholder of Copper Mountain Corporation. Jim was the 2005 recipient of the Edgar A. Scholz Medal for Excellence in Mine Development in British Columbia and the Yukon, and the recipient of the Mining Person of the Year award for British Columbia in 2010. He was a recipient of the Order of British Columbia in 2011. In 2013 Jim was inducted into the Canadian Mining Hall of Fame.
Gilmour Clausen, P.Eng.
Director, President and CEO
Gil is a mining executive with more than 30 years’ experience in the areas of management, finance, development and operations in the base metals and precious metals industry. Gil is the Chief Executive Officer of Brio Gold Inc. and has held that position since 2015 and will cease to be such prior to June 1, 2018. Gil will become the President and Chief Executive Officer and director of the Corporation on June 1, 2018. Gil was President, Chief Executive Officer and a director of Augusta Resource Corporation from its inception in 2005 until Augusta was acquired by HudBay Minerals Inc. in July 2014. He was Executive Vice President, Mining at Washington Group International, Inc. from 2001 to 2005 and served as the Vice President of Operations of Stillwater Mining Company from 1995 to 1999. Prior to 1995, Gil was a mine general manager at several precious and base metals operations of Placer Dome Inc in British Columbia and Ontario.Gil is a registered Professional Engineer in the province of British Columbia with Bachelors and Masters degrees in Mining Engineering from Queen’s University. He is a graduate of Queen’s University’s executive business program and the Harvard University Business School’s program in corporate board governance.
RODNEY A. (ROD) SHIER, CPA- CA
CFO, Corporate Secretary
Graduated from the University of British Columbia in 1986 with a Bachelor of Commerce degree and earned his Chartered Accountant designation in 1989. Rod has over twenty years experience as a corporate officer and director to a number of publicly–traded mining companies, and has experience in raising over $1 billion in debt and equity financing transactions. Rod is Chief Financial Officer, Director, and a founding shareholder of Copper Mountain Mining Corporation. His responsibilities include all aspects of the Company’s financial operations, controls and financial disclosure, as well as maintaining the Company’s corporate records, 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 and the 2013 recipient of the Edgar A. Scholz Medal for Excellence In Mine Development in British Columbia.
PETER HOLBECK, M.Sc., P.Geo
Graduated in 1981 from The University of British Columbia with a B.Sc.(hons) in geology and a Masters of Science in Economic Geology (1988), and has 25 years experience in mineral exploration and mine development.
RICHARD JOYES, B.Sc. Geo
Senior Exploration Geologist
Graduated from the University of Tasmania in 1999 with a bachelors degree majoring in ore–deposit geology. With a particular focus on 3D modeling, mineral inventory and deposit estimation and database administration, Richard brings a wide variety of both field and computer based skills to the exploration team.
Richard Klue, NHD Ext.Met, B-Com
VP Technical Services
A Fellow of the South African Institute of Mining & Metallurgy (SAIMM) and a Metallurgical Engineer by profession who holds a B-Commerce degree. He has more than 35 years in the mining minerals and metals industry. Mr. Klue has developed and implemented new technologies in Canada, USA, Africa, India, Iran, Russia, Europe, Australia and China. Mr. Klue excelled in senior positions such as Senior Vice President, Metallurgical Manager and Plant Superintendent for companies such as Tetra Tech, Hatch and Messina Copper. Signature projects include Skorpion Zinc for Anglo American in Namibia, Rampura Agucha Lead-Zinc concentrator expansion for Vedanta in India, Kamoto Copper-Cobalt refinery for Nikanor in the DRC and Lumwana Copper for Equinox in Zambia.
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