TORONTO (miningweekly.com) – Copper Mountain Mining on Wednesday announced that its eponymous flagship operation in southern British Columbia was on track to meet full-year production expectations after producing 19-million pounds of copper, 7 100 oz of gold, and 65 700 oz of silver during the first quarter ended March 31.
The Vancouver-based miner said its mill throughput increased; the company processed 3.4-million tonnes of ore at an average rate of 37 100 t/d, with 91% operating time. Mill tonnage averaged a record 39 980 t/d in February. Copper recovery for the period was 82% treating at an average grade of 0.312% copper.
Meanwhile, mine production was strong, with the operation extracting about 192 000 t/d of material during the period, in line with budget expectations. A total of 17.5-million tonnes of material was mined, including 5.7-million tonnes of ore and 11.8-million tonnes of waste, resulting in a strip ratio of 2:1.
Copper Mountain advised that mining activities were focused on both the Pit 2 and Virginia pit areas. During the quarter, the mine achieved a new daily mining record of 242 950 t/d, which was made possible by opening up short waste haul opportunities and a continued focus on increasing haul truck hours.
Meanwhile, Copper Mountain had signed an agreement with BC Hydro whereby up to 75% of the monthly electricity payment might be deferred at current copper prices, as part of a five-year agreement. This agreement took effect as of March 1. In the first month of electricity deferral, the mine deferred $1.8-million in electricity charges. The company advised that this amount would accumulate on the balance sheet as a non-current asset.
"The favourable Canadian dollar, lower fuel prices, shareholders' deferral of crusher tolling fees, contributions by our employees and the deferral of electricity payments to BC Hydro are significant and greatly appreciated. At the current copper price range of $2.10/lb, the deferral of electrical payments would be approximately C$22.5-million per year or $0.20/lb copper," stated president and CEO Jim O'Rourke.
The company's TSX-listed stock was up 4% on Wednesday at C$0.52 apiece, having gained nearly 20% in value since the start of the year.