Resource World Magazine

20 www.resourceworld.com a u g u s t / s e p t e m b e r 2 0 1 5 i n s i g h t s & i n v e s t m e n t s B a r r y M u i r W hen you think of everything that goes into creating a mine, it is certainly a long and com- plex process. From raising money, acquiring a property, settling land claims, permitting, drilling, metallurgy, feasibility, establishing resources, roads, power, water, employees, engineering, construction, equipment, crushing, waste, concentrate, shipping, managing, reclamation, and hope- fully, some profits. Every step is crucial to the final out- come. Then one needs to consider the volatility of metal prices and curren- cies, market uncertainty and shareholder sentiment. It's no wonder that it's a rare occurrence to see a junior mining company graduate to full scale producer. But some- times the stars align just right and what appears impossible is achieved. Princeton, British Columbia is a pic- turesque town of nearly 3,000 people just east of the Cascade Mountains a three hours drive east of Vancouver. The town was largely established from the 1.7 bil- lion pounds of copper that was mined from 1927 until 1996 by Granby Mining, Newmont Mining and later, Princeton Mining. The mine, just 20 km from Princeton, shut down in 1996 as a result of low copper prices, rising production costs and necessary capital expenditures. Since then, the town has depended largely on the forest industry for its survival but with the pine-beetle infestation and other forestry setbacks, the town has struggled. In early 2010, rumors began swirling around Princeton that the mine was re- opening. It had been over a decade and some of the miners still lived in town, long retired. For some, that was about to change. That year, 71-year-old Frank Armitage, who had worked in human resources for 40 years, got the call asking if he could put a crew together. Within a year he had hired 270 workers. It was a return to a way of life for many who had reluctantly left it behind. Today, the Copper Mountain Mine has over 400 employees and is the third largest copper mine in Canada utiliz- ing some of the most modern equipment available. In Princeton, baby strollers are a common site along Bridge Street as new homes spring up and businesses flourish. In December 2006, Chairman and CEO, Jim O'Rourke and Chief Financial Officer, Rod Shier, purchased the property that is now Copper Mountain through the acquisi- tion of Similco Mines at a time when copper prices were just coming off their lows. In June 2007, Copper Mountain Mining Corp. [CUM-TSX; CPPMF-OTC] closed their initial public offering, raising $7 million that started them out on one of the most extensive exploration programs in British Columbia's history. The subse- quent drilling of 107,000 metres confirmed the economic viability of creating a "super pit" by merging the three existing pits into one deeper and wider pit. By 2009, the indicated resource was at 5 billion pounds of copper, nearly 500,000 ounces of gold and 4.5 million ounces of silver. Canadian Mining Hall of Fame recipi- ent, Jim O'Rourke, held an unwavering focus on building a mine even in the face of the financial meltdown. He had also gained the respect of Mitsubishi Materials Corp. through their successful partnership at Huckleberry, one of six other British Columbia mines O'Rourke contributed to the building of over the past 50 years. It was largely this established relationship that brought Mitsubishi in for a 25% stake in the Copper Mountain Mine and helped secure the required debt financing from Japanese banks and JBIC, the governmental credit agency for overseas investments to the tune of US $322 million at a time when conventional bank debt was not available. Not only was the Mitsubishi agree- ment tremendously important in terms of size and timing, it also demonstrated confidence in Copper Mountain's manage- ment who led the seemingly impossible task of completing the mine on time and on budget. Production commenced in July 2011 and by September that same year the company had shipped its first concentrate. As well as a partner, Mitsubishi Materials purchases 100% of the copper produced for its smelters back home in Japan. Copper Mountain has already repaid US $80 million on the two debt facilities, both the Copper Mountain Mine – anything is possible The Copper Mountain Mine near Princeton, southwest British Columbia. Photo courtesy Copper Mountain Mining Corp.

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