The Copper Mountain Mine (CMM), in southern British Columbia, will operate for longer and at a higher production rate, following the integration of production from the nearby New Ingerbelle deposit.

Copper Mountain on Monday announced a new integrated production plan for CMM, which includes a modest expansion of the existing mill to 45 000 t/d and integrating New Ingerbelle.

The results include a 102% increase in mineral reserves, a 27% increase in average copper-equivalent production to 116-million pounds a year, a 12-year extension in mine life to 26 years and a decrease in C1 cash costs to $1.87/lb produced, when compared to the previous CMM production plan.

The company said it would adopt a phased approach to the investments in the mill expansion and New Ingerbelle development. 

The first phase would be a $25-million plant expansion, which would require the installation of a third ball mill.  The expansion could be completed as early as the first quarter of 2020.

The second phase would be for the development of New Ingerbelle, which requires capital of about $23-million.

The after-tax net present value of the integrated production plan for the CMM, including both growth projects, is about $619-million.  

"The new integrated production plan completely transforms the Copper Mountain operations," states president and CEO Gil Clausen.

"For minimal capital and minimal risk, we have the potential to realise significant value as we expect to increase our annual production, double total life-of-mine production, extend the mine life and decrease unit costs,” he added.

The 2019 mine plan calls for total production of 2.34-billion pounds of copper-equivalent, comprising 1.90-billion pounds of copper output and 982 000 oz of gold, equating to 93-million pounds a year of copper and 49 000 oz/y of gold.

“These growth projects build upon an already solid operating base allowing us the potential to increase and advance near term cash flow. Over the next ten years the project has no negative cash flow years, and the company is actively reviewing the replacement of the existing debt packages that would allow for significant cash to be available from cash flows that would enhance overall liquidity for the company,” commented Clausen.