Name: Copper Mountain mine.

Location: The Copper Mountain mine is located 20 km south of Princeton, in British Columbia, Canada.

Controlling Company: Copper Mountain Mining Corporation (75%) and Mitsubishi Materials Corporation (25%).

Brief History: In four-and-a-half years Copper Mountain Mining Corporation transitioned from an exploration-stage company to a mid-tier copper producer. The company was formed in 2007 for the sole purpose of advancing the Copper Mountain project into production. In October 2008, following an extensive drill programme and an updated feasibility study, Copper Mountain Mining Corporation’s board of directors authorised the development of the Copper Mountain mine project. Construction of the Copper Mountain mine, processing facilities and related infrastructure began in April 2010. Development activities were completed by June 30, 2011, and the mine started production that summer. The company has an offtake agreement with 25% partner Mitsubishi Materials Corporation, which has agreed to buy 100% of the project’s concentrate at LME spot rates at the time of settlement.

Brief Description: The Copper Mountain mine site covers 7 284 ha and consist primarily of 135 crown grants, 176 mineral claims and 14 mining leases.

Mining Method: Conventional openpit, truck and shovel operation. The company is combining the pre-existing openpits into one large superpit.

Products: Copper, with gold and silver as by-products.

Major Infrastructure and Equipment: Copper Mountain is located in an area with well–developed infrastructure. The property is accessible by a combination of highways and paved roads, and is within trucking distance to the port of Vancouver that provides service for shipment of copper concentrates. The mine is a 20 minute drive from local communities that provide goods, services and personnel.

The mine uses a conventional crushing, grinding and flotation to produce copper concentrates, with gold and silver as by-products. The con- centrator comprises one 34-ft-diameter semiautogenous mill, two 24-ft-diameter ball mills, a rougher floatation circuit, a regrind mill, a cleaner floatation circuit, a concentrate thickener and a pressure filter that produces copper concentrate at about a 9% moisture.

The mine has a new mobile mining fleet consisting of two Komatsu PC 8000 hydraulic shovels, thirteen 240 t Komatsu 830E haul trucks, one Komatsu WA 1200 loader, two PV271 Atlas Copco rotary drills, one PV351 Atlas Copco rotary drill, and a fleet of support equipment. In addition, the mine recently acquired an Ex 5500 Hitachi hydraulic shovel, five 260 t haul trucks and a PV351 drill.

New port facilities have been constructed to allow for storage of up to 15 000 wet tons of concentrate and a new truck tipper that can handle 50 t super B train truck units.

Geology/Mineralisation: Copper Mountain is host to a large, structurally complex alkalic porphyry copper/gold/silver system that is part of a northerly trending Mesozoic tectonostratigraphic terrane termed Quesnellia. The terrane comprises a volcanic arc, with overlying sedimentary sequences, all of which were formed on top of a deformed, oceanic sedimentary-volcanic complex. The principle rock formation of Quesnellia is the late Triassic Nicola group, a predominately subaqueous island-arc assemblage, composed of volcanic and lesser sedimentary rocks. The Nicola group rocks have a stratigraphic thickness of about 7.5 km and form a 25-km-wide band that extends north from the Canada/US border to beyond Kamloops lake. The Copper Mountain alkalic porphyry copper/gold camp occurs in the eastern volcanic belt of the Nicola group.

Resources: During 2007 and 2008, the company embarked on an extensive drill programme, which increased the resource by 45% to more than five-billion pounds of copper, with precious metal credits.

Prospects: The Copper Mountain Mining Corporation’s goal for 2013 is to continue optimising the performance of the Copper Mountain mine to increase copper production. The 2013 production target is 80-million pounds of copper, plus gold and silver at a total cash cost (net of precious metal credits) of $1.80/lb of copper.

Management plans to continue exploration drilling in 2013, building on the 2012 exploration programme. The 2012 exploration drilling was focused on the western and northern edges of Pit 2. Plans for the 2013 drilling programme will be finalised after the 2012 results have been evaluated.

Contact Person: Corporate communications, Galina Meleger.

Contact Details:
Copper Mountain Mining Corporation, tel +1 604 682 2992, fax +1 604 682 2993, email galina@cumtn.com, and
website http://www.cumtn.com

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