Copper Mountain Mining Corporation reported that Japan Mitsubishi Materials Corporation has now closed the purchase whereby Mitsubishi acquired a 25% interest in the Copper Mountain Project located near at Princeton in BC.
The Project is an open pit porphyry copper mine that operated from 1972 to 1996 and over its life produced 1.74 billion pounds of copper, 73,000 ounces of gold and 9.1 million ounces of silver. The current resource is estimated at 5 billion pounds of copper at a 0.15 % Cu cut off. The resource estimate incorporates data from over 4,400 historical drill holes totaling approximately 400,000 meters and 370 new drill holes, totaling 107,000 meters from the Company's 2007 and 2008 exploration programs.
To date, site activities have continued on schedule and were funded by the Company's equity contributions and a USD 28.75 million line of credit from Mitsubishi. This line of credit has now been fully repaid. Long lead items have been ordered with the SAG and ball mill manufacturing well underway to maintain the target production schedule for mid 2011. Detailed engineering is progressing and site geotechnical excavation for the concentrator is now complete. The office and warehouse complex is now fully functional with power, heat, water, telephones, internet and sewerage.
The Company plans to start pouring concrete foundations in September 2009 in preparation for a very busy Spring 2010 construction schedule. The Company has approximately 20 employees currently engaged at the site. It is estimated that the Project will provide employment for 200 construction workers at its peak and the ongoing operations will create 257 full time positions. Over the 17 year life of the Project, it is estimated that the mine will produce 1.47 billion pounds of copper, 452,000 ounces of gold and 4.5 million ounces of silver.
