Copper Mountain Mining Corporation (TSX: CUM) (the “Company” or “Copper Mountain”) announces production results for the year ended December 2012 from the Copper Mountain Mine located in southern British Columbia.
In 2012 the mine shipped approximately 59 million pounds of copper, 20 thousand ounces of gold, and 402 thousand ounces of silver generating an estimated $247 million in gross revenue. Since the first shipment of concentrate in September 2011 the mine has continued to make one shipment per month to the smelters in Japan. The mine produced 57 million pounds of copper, 19 thousand ounces of gold, and 354 thousand ounces of silver during operations in 2012. The mill averaged 82% operating time for the year and milled a total of 9.4 million tonnes at an average grade of 0.343 % Copper.
Mining activities continued from the Pit 2 and Pit 3 areas and averaged approximately 170,000 tonnes per day. During the 2012 year a total of 55 million tonnes of material was mined, including 12.5 million tonnes of ore and 42.5 million tonnes of waste. The projected life of mine strip ratio is 2 to 1 but higher in the early years.
Production guidance for 2013 was issued on December 21, 2012 as approximately 80 million pounds of copper, 35 thousand ounces of gold, and 315 thousand ounces of silver. Site cash cost were estimated to be (incl. mining, milling, maintenance, admin, and engineering) of $1.25 – $1.30 per pound of copper produced net of precious metal credits. (Calculated based on $ 3.40 /lb Cu, $1,500/oz Au and $28.50/oz Ag). Total cash costs (incl. site costs, smelting & refining, transportation, interest and taxes) were estimated to be between $1.80 – $2.00 per pound of copper produced net of precious metal credits.
From an operational point of view, mining will continue in both Pit 2 and Pit 3 in 2013. Approximately 16 million tonnes of lower grade material will be stockpiled for processing towards the end of the mine life.