Copper Mountain Mine Production Of 24.4 Million Pounds Of Copper Equivalent

VANCOUVER – Copper Mountain Mining Corporation reported third quarter revenues of $77.1 million after pricing adjustments and treatment charges from the sale of 22.6 million pounds of copper equivalent, including 19.3 million pounds of copper, 6,500 ounces of gold, and 72,700 ounces of silver. Highlights: Copper, gold and silver production for the third quarter of 2017 at Copper Mountain Mine was 24.4 million pounds of copper equivalent which includes 20.9 million pounds of copper, 6,700 ounces of gold and 79,300 ounces of silver; Revenues for the third quarter of 2017 were $77.1 million from the sale of 19.3 million pounds of copper, 6,500 ounces of gold, and 72,700 ounces of silver, net of pricing adjustments; EBITDA was $42.9 million for the quarter; Cash Flow from operations for the quarter was $31.6 million before working capital changes; Cash balance at the the end of Q3 was $43.6 million; Mill throughput averaged 41,158 tpd during the quarter, setting a new quarterly throughput record; Site cash costs for the quarter were US$1.25 per pound of copper produced, net of precious metal credits; Total cash costs for the quarter were in line with expectations at US$1.62 per pound of copper sold, net of precious metal credits and after all off-site charges; and Realized prices on metal sales for Q3 2017 were US$2.91 per pound of copper, US$1,286 per ounce of gold and US$17.05 per ounce of silver.

Jim O’Rourke, President and CEO of Copper Mountain, remarked “During the third quarter of 2017, Copper Mountain continued to mine at rates well above our guidance levels. Mill throughput averaged 41,158 tpd, 8.4% above forecast and in line to meet our 2017 guidance. The coarser grind from the higher tonnage continues to result in a slightly lower recovery, but copper production remains on target”. Mr. O’Rourke continued, “We remain bullish on the outlook for the copper market and with our production on target we are well positioned to benefit from a strong copper price environment. During the first three quarters of 2017 the Company has paid down a total of $43.8 million in principle and interest on project debt and leases. We continue to focus on cost control and operational improvements to further strengthen the Company’s balance sheet.”

During the quarter, the Company completed a total of three shipments of copper concentrate containing approximately 19.3 million pounds of copper, 6,500 ounces of gold, and 72,700 ounces of silver which generated $77.1 million in revenue net of treatment and refining charges and pricing adjustments.  Site cash costs were US$1.25 per pound of copper produced and total cash costs were US$1.62 per pound sold, net of precious metal credits for the three months ended September 30, 2017; compared to site cash costs of US$0.97 per pound of copper produced and total cash costs of US$1.45 per pound of copper sold, net of precious metal credits for the three months ended September 30, 2016.  The increase in revenue is a result of stronger copper prices being realized during the quarter as compared to the same period last year, while the increase in unit costs is a result of the decreased pounds of copper produced due to a lower grade and reduced recoveries combined with a reduction in the precious metal credits as compared to the 2016 comparative period.

Mining activities continued to be focused in the Pit #2, Saddle and Oriole areas for the third quarter of 2017 with a majority of ore coming from the Pit #2 area. Oriole accounted for about 10% of the ore processed during the period.  During the quarter, a total of 17.4 million tonnes of material was mined, including 6.8 million tonnes of ore and 10.6 million tonnes of waste for a strip ratio of 1.55:1.  Mining costs per tonne during the quarter was $1.73 per tonne moved. 

During the quarter, the mill processed a total of 3.8 million tonnes of ore grading 0.32% copper to produce 20.9 million pounds of copper, 6,700 ounces of gold, and 79,300 ounces of silver. Mill head grade was slightly above guidance for the quarter, while copper recoveries were slightly below plan at 77.3% for the quarter.  The lower recoveries can be attributable to the coarser grind that resulted from processing more material and from processing some fine-grained ore in the Saddle area. Mill operating time during the quarter averaged 93.5% while mill tonnage averaged 41,158 tpd. 

The Company began a summer 10,000m exploration drilling program at the Copper Mountain Mine.  The 2017 program is targeting to further extend Pit 2 to the West and to follow up on the pre-2012 drilling that intersected significant mineralization below Pit 2.  Previous drilling by the Company in the Pit 2 Eastern zone intersected a 128m interval grading 1.01% Cu and 0.25g/t Au (including 39m grading 2.33% Cu and 0.38g/t Au) beginning approximately 90m below the current pit bottom in hole 10SD-64.  In addition, hole number 10SD-68 intersected 173m interval grading 0.43% Cu and 0.15g/t Au, while hole number 12P2-19 intersected 123m interval grading 0.52% Cu and 0.27g/t Au. The exploration drilling is designed to better determine the trend and continuity for high-grade mineralization at depth under Pit 2.

The 2017 program was successful in intercepting the high grade mineralization at depth on the eastern end of Pit 2. Drilling south west of Pit 2 continued to intercept mineralization, but was intermittent as drilling moved outside of the western extremities of the current pit limits, indicating that additional drilling may be required.