TORONTO (miningeekly.com) – TSX-listed Curis Resources on Tuesday said that the Florence town council has voted to settle a dispute over the company's occupancy of administrative buildings for its Florence copper project in Arizona.

“Florence Copper is pleased to bring these legal proceedings to a close. We continue to look for meaningful ways to work cooperatively with the town's leadership and to develop a productive long-term relationship that contributes to the economic health and viability of the community,” executive VP and general counsel for the company Rita Maguire said.

At a town meeting on Monday, the Florence council voted unanimously to settle its dispute with Curis' subsidiary, Florence Copper, over the occupancy of the administrative buildings at the site of Curis' future in-situ copper operation.

Curis filed a lawsuit after the town had summarily condemned its administrative offices and denied it access to the site for alleged health and safety concerns. The town, through its insurance carrier, has agreed to pay Florence Copper $100 000 for damages arising from the 30-day lockout.

COPPER SOLUTION

A prefeasibility study completed in March last year on the Florence copper project envisages a revised extraction plan, compared with the development plan included in the 2010 preliminary economic assessment (PEA).

The study was based on an estimated 340-million tons of probable mineral reserves, grading 0.358% total copper at a cutoff grade of 0.05% total copper.

The revised plan incorporates existing facilities and locates the well field, the copper processing plant, the water-management facilities and related infrastructure on the 65 ha Arizona State Land Department lease area, which will be controlled by Curis for the first nine years of operations. In the tenth year, production will expand to private land owned by Curis.

Yearly production has been revised to 55-million pounds of copper cathode for years one to six, increasing to 85-million pounds of copper cathode in years 7 to 21, with a decline thereafter.

Initial capital costs are estimated at $196-million, an 18% decrease from the initial estimate presented in the 2010 PEA.

Copper production is scheduled to begin in 2016.

The town council of Florence, Arizona, has rescinded an ordinance enacted in August 2012 that banned the use of large quantities of sulphuric acid by miners and other businesses, which now paves the way for Curis to move forward with its Florence copper project.

“The removal of this ordinance allows the company to continue preparations for the start of construction and operations of the Phase 1 production test facility, allowing the company to demonstrate the safe operation of in-situ techniques and water safeguards,” Curis VP for environment and technical services and GM Dan Johnson said at the time.

Meanwhile, Curis is awaiting approval from the Environmental Protection Agency for an underground injection control permit for a Phase 1 production test facility at the Florence project. The company will initiate formal construction and operations of the test facility once the permit is received.