Capstone Extends Pinto Valley Copper Mine Life to 2039, Arizona
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Capstone Mining Corp. has extended its Pinto Valley Mine life to 2039.
The results of the pre-feasibility study – mine life extension (PV3 PFS) have been announced. Proven and probable mineral reserves increased to 473.8 million tonnes grading 0.31 percent copper, resulting in mine life to 2039, a 13 year increase over the previously published PV2 PFS (2014). Life of mine (LOM) average annual production of copper in concentrate is estimated at 122.8 million pounds of copper and 1.9 million pounds of molybdenum. Mill production increases to 20.4 million tonnes per year (56,000 tonnes per day) in 2017 from 19.8 million tonnes (54,000 tpd) in 2016 through improvements in maintenance and operational practices. Expected LOM C1 cash costs are estimated to be $2.05 per pound of payable copper (net of by-product credits and including capitalized stripping as an operating cost). No significant capital is required for PV3 until stripping commences in 2020.
“The PV3 PFS adds significant value to the Pinto Valley Mine by more than doubling the remaining mine life to 23 years and increasing throughput by 8 percent without any major capital investment,” said Darren Pylot, president and CEO of Capstone.
“The PV3 mine plan and capital schedule closely mirrors the PV2 mine plan for the next two years, but with increased throughput rates. The mine plan calls for relatively higher grade in 2016 and 2017 with low sustaining capital requirements, resulting in a C1 cost, including capitalized stripping, ranging from $1.90 to $2.00 per pound of copper and an all-in cost ranging from $2.10 to $2.20 per pound of copper in those years. The grade profile allows us to weather the current copper price environment and the mine plan gives us significant flexibility, with the next major decision point being to advance the first PV3 pushback in 2020. Our focus will continue to be on process improvements, with significant leverage to the upside when copper prices improve,” continued Pylot.
PERMITTING
Extending the mine life to 2039 from 2026 will require revisions of two major permits:
1. Aquifer protection permit (APP) issued by the Arizona Department of Environmental Quality to expand an existing tailings facility and permit a new mine waste rock storage facility.
2. An amendment to the plan of operations, issued by the US Forest Service, related to:
• Tailings storage expansion, 409 acres,
• Mine expansion, 61 acres,
• Outstanding permit renewals.
To read the full details in the company’s press release, CLICK HERE
About Capstone Mining
Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. They are committed to the responsible development of assets and the environments in which they operate. Their three producing mines are the Pinto Valley copper mine located in Arizona, US, the Cozamin copper-silver mine in Zacatecas State, Mexico and the Minto copper mine in Yukon, Canada. In addition, Capstone has two development projects; the large scale 70 percent owned copper-iron Santo Domingo project in Region III, Chile, in partnership with Korea Resources Corporation, and the 100 percent owned Kutcho copper-zinc project in British Columbia, Canada, as well as exploration properties in Chile. Capstone’s strategy is to continue extend the lives of current mines with mineral resource and reserve expansions, maintain the optionality on the Santo Domingo development project, prudently progress the exploration portfolio and grow through acquisitions in politically stable, mining-friendly regions. The company will pace their growth with financial capacity, ensuring they retain, as a priority, sufficient financial flexibility to meet the requirements of existing operations and committed development projects, while maintaining an adequate cushion to deal with market volatility and operating risks inherent in the mining industry.
To stop by Capstone Mining’s website, CLICK HERE
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