TSX-listed Imperial Metals Corporation has reported lower quarter-on-quarter production from the Red Chris copper/gold project, in British Columbia, for the first quarter of this year, owing to a major power outage during a winter weather event experienced in February.
The company explains in its latest production update that the weather event caused some mill infrastructure to freeze, which in turn resulted in damage to a regrind mill and severely impacted on recoveries during the rest of the quarter.
Output from the Red Chris project, in which Imperial holds a 30% stake and Australian corporation Newcrest the balance, amounted to 15.9-million pounds of copper and 15 850 oz of gold, compared with 17.2-million pounds of copper and 16 251 oz of gold produced in the fourth quarter of last year.
Meanwhile, during the first quarter of the year, there were seven diamond drill rigs in operation at the project, completing a further 16 854 m of drilling from 12 drill holes.
This contributed to a total of 121 289 m of drilling from 100 drill holes since the start of the joint venture between the companies in August 2019.
The exploration is aimed at expanding the high-grade mineralisation intersected at East Ridge and at the Main Zone deposits.
Imperial says the companies plan on undertaking an additional 50 000 m of drilling this year, bringing on board one more drill rig next quarter.
The companies plan on publishing a prefeasibility study on the development of a high-margin underground block cave mine at Red Chris, before the end of September. An updated mineral reserve estimate will then incorporate a block cave operation at the project for the first time.
Imperial notes that construction of a portal site and surface infrastructure for an exploration decline into the East zone is progressing well and a selected underground contractor is mobilising on site.