ARIZONA – Capstone Mining Corp. of Vancouver has offered owner BHP Copper US$650 million for the Pinto Valley open pit copper mining operation and associated San Manuel Arizona Railroad. The property is approximately 125 km east of Phoenix.
The Pinto Valley project produces between 130 million and 150 million lb of copper in concentrate plus 10 million lb of copper cathode annually. The cash cost is US$1.80 per lb of copper, net of by-product credits. Molybdenum and silver are by-products.
Resources at Pinto Valley include 968 million measured and indicated tonnes grading 0.35% Cu and 0.009% Mo plus 45 million inferred tonnes grading 0.33% Cu and 0.009% Mo. The measured and indicated resource is estimated to contain 3.4 million tonnes of copper and 85 million lb of molybdenum.
Capstone says ownership of the Pinto Valley operation elevates it to the ranks of intermediate copper producers. The company’s first producer is the Minto copper-gold mine in Yukon; it came on-stream in 2007. The company also runs the Cozamin copper-silver-zinc mine in Mexico, and is developing the Kutcho copper-zinc-gold project in British Columbia and the Santo Domingo iron-copper-gold project in Chile.
Capstone’s presentation on its latest acquisition can be read at CapstoneMining.com.