Resource World Magazine

F E B R U A R Y / M A R C H 2 0 2 0 www.resourceworld.com 55 COPPER Obviously, the demand for copper has to increase. And it's not just cars – soon there will be electric pickup trucks, SUVs. Semi-tractor trailers are already coming off the XOS assembly line in Los Angeles. Tesla just began building electric cars in China – a potentially huge market. These are global markets that will spur global copper demand. Yes, there are a few challenges such as lack of charging stations and apartments with no plug-in service available but these problems will gradually get solved. Another challenge is poor driving range in very hot or very cold climates where air conditioning, defrosters and heaters need to be turned on. On top of these vehicular develop- ments is the widespread building of wind turbine farms – another major utilizer of copper. A single wind farm can con- tain anywhere between 4 and 15 million pounds of copper. Will there be enough copper available to meet these impending needs? According the US Geological Survey, global copper reserves are estimated to be 830 million tonnes with annual copper demand at 28 million tonnes. About 35% of demand is met with recycled copper, which reduces the need for mined copper. According to a report published by Fitch Solutions, global copper production will see steady growth over the next few years with annual production expected to increase at an average annual rate of 3.5% from 2019 to 2028, with volume climbing from 21.4 Mt to 28.7 Mt during this period. It appears that there will be enough copper to meet current and future demand after taking into account the expected growth in demand for copper uses with EVs and renewable energy projects. Below are some select copper projects. COPPER PROJECTS Taseko Mines Ltd. [TKO-TSX, LSE; TGB- NYSE American] has reported production from its 75%-owned Gibraltar Mine 65 km north of Williams Lake in British Columbia Cariboo region. Total production for 2018 was 126 million pounds of copper and 2.7 million pounds of molybdenum, both slightly higher than in 2018. In the fourth quarter, production totalled 33.4 million pounds of copper and 700,000 pounds of molybdenum, similar to the levels achieved in the prior quarter. Total sales for the year were 122 million pounds of copper and 2.8 million pounds of molybdenum. Throughput in the fourth quarter was at design capacity and grade was approximately life-of-mine average. Russell Hallbauer, CEO, said, "Looking forward, with a stronger copper price than what was averaged in 2019, combined with lower treatment and refining costs, we expect an improved operating margin to begin the new year." Also in the Cariboo region, 125 km southwest of Williams Lake, the Tilhqot'in Nation as represented by Tilhqot'in National Government are holding talks facilitated by the Province of British Columbia to try to obtain a long term solution to the conflict regarding Taseko's proposed New Prosperity gold-copper mine. Taseko has a 100% interest in the Yellowhead copper project 90 km from Kamloops, BC. This advanced stage proj- ect has substantial reserves and resources defined and a positive Feasibility Study. Taseko is advancing its 100%-owned Florence copper project located 65 miles southeast of Tucson, Arizona. The project is at the development stage and is envis- aged as an in-situ mining operation. Development is in in two phases – the first phase is a production test facility, which is followed by the second phase commercial facility. Construction of the Phase 1 facility, which includes 24 injec- tion, recovery and monitoring wells and an SX/EW plant, was completed in the third quarter 2018, on-time and on budget. Kutcho Copper Corp. [KC-TSXV; LCCFF-OTC] has received a Section 11 Order from the British Columbia Environmental Assessment Office for its 100%-owned Kutcho copper-zinc project located 100 km east of Dease Lake, north- ern British Columbia. The property hosts a new 2019 resource estimate 17.26 Mt of Measured and Indicated at 2.61% CuEq and 10.71Mt Inferred at 1.67% CuEq. Metallurgy results show significant improvements with recov- eries of up to 92.3% Cu and 84.2% Zn at Main lens and 94.5% Cu and 89.3% Zn at Esso lens. A 2017 Pre-feasibility Study dem- onstrated robust economics with after-tax NPV of $265 million, an IRR of 27.6% and initial Capex of $221 million. Kutcho Copper President and CEO Vince Sorace noted, "The issuing of the Section 11 Order by BCEAO is an important initial milestone in the Environmental Assessment process for Kutcho. We are looking forward to working hard and collaboratively on our journey through this permitting process and to a completed EA application." Copper Mountain Mining Corp. [CMMC-TSX; CPPMF-OTC; C6C-ASX] has a 75% interest in the conventional open pit, truck and shovel Copper Mountain Mine (Mitsubishi Materials 25%) near Princeton, southwest BC, where plant throughput is expected to increase to 45 ktpd in 2020 with the installation of a third ball mill. With the expansion, aver- age annual production is expected to increase to 116 million pounds of copper equivalent from 90 million pounds of cop- per equivalent. Based on reserves only, and with the integration of the New Ingerbelle deposit located 1 km from the Copper Mountain Mine, the operation's current mine life is expected to be approximately 31 years. Further potential exists through the upgrading of resources to reserves and fur- ther exploration. The company also holds the Cameron copper exploration project located 30 km south of its Eva copper project, in Queensland, Australia. It lies within the company's large prospective mineralized land package of approximately 4,000 km 2 . Nicola Mining Inc. [NIM-TSXV; HUSIF-OTC] has staked mineral claims totalling 828 hectares to the immediate south of its 100%-owned New Craigmont

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