BRITISH COLUMBIA – Permit amendments have been received and directors of Huckleberry Mines have approved the Main zone optimization (MZO) program that will extend the life of the copper mine to 2021. The seven-year extension will preserve 230 full time and 30 contract jobs at the site, and about 70 new positions will be created. The company said that it expected to spend $254 million on wages and benefits (excluding contractors), $119 million on new acquisitions and $82 million on dam construction between by 2021.
The MZO plan is estimated to have a net present value of $150 million, at a discount rate of 8%. The plan is based on the development of a mineral reserve (beneath the original Main zone pit) of 39.7 million tonnes grading 0.343% Cu.
With the implementation of the MZO plan, production from 2011 to 2021 is estimated to be 424.0 million lb of copper, with copper production averaging 43.2 million lb per year from 2011 to 2019. Production in 2020 and 2021 will be reduced as low grade stockpiles are milled.
Imperial Metals of Vancouver holds a 50% interest in Huckleberry Mines. The remaining 50% interest is held by a consortium of Mitsubishi Materials, Marubeni, Dowa Mining and Furukawa.
An in-depth look at the Huckleberry mine is available at www.ImperialMetals.com/s/HuckleberryMine.asp.