Capstone Mining extends Arizona mine life to 2026
TORONTO (miningweekly.com) – Canadian base metals miner Capstone Mining on Wednesday reported that it had completed a prefeasibility study (PFS) for its Pinot Valley copper mine, in Arizona, which extended the mine life by eight years to 2026.
Capstone last year acquired the the Pinto Valley copper mine and the associated San Manuel Arizona Railroad Company for about $650-million from BHP Copper, and on Wednesday said that for the first five years it was targeting output of 128.4-million pounds of copper in concentrate and 6.6-million pounds of copper cathode a year.
Over the life of the mine, which is located in Arizona’s Globe-Miami mining district, about 125 km east of Phoenix, it is expected to produce 119.5-million pounds of copper in concentrate and 6.3-million pounds of cathode copper.
The after-tax value, using a discount rate of 8% came in at $738-million, and the capital costs are pegged at $187.9-million over about 12 years.
The company anticipates Pinto Valley to produce an average of 125.8-million pounds of red metal at an operating cash cost of $2/lb over the 12-year remaining mine life.
“Completion of the [PFS] extends the mine life to 2026 and provides us with the platform to stabilise operations, gain efficiencies and gives us the opportunity to take a longer-term view towards the future of the Pinto Valley mine. As well as pursuing operating efficiencies, we have started the work required to evaluate a possible mine life extension beyond 2026 and a potential increase in throughput,” president and CEO Darren Pylot said.
The company’s TSX-listed stocks were on Wednesday the third-most traded shares and rose 5.13% to C$2.87 apiece.
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