R/€ = 16.08 Change: 0.02
R/$ = 14.41 Change: 0.02
Au 1277.10 $/oz Change: -8.78
Pt 815.90 $/oz Change: -10.92
 
 
R/€ = 16.08 Change: 0.02
R/$ = 14.41 Change: 0.02
Au 1277.10 $/oz Change: -8.78
Pt 815.90 $/oz Change: -10.92
 
 
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Capstone delivers on FY18 copper output guidance

11th January 2019 BY: Simone Liedtke
Writer

TSX-listed Capstone Mining produced 155.2-million pounds of copper in 2018, in line with expectations, and has set its 2019 output guidance at between 145-million and 160-million pounds of copper at a C1 cash cost of between $1.80/lb and $2/lb.

During this year, the Canadian base metals miner expects to complete a scoping level study at its Pinto Valley openpit copper operation, in the US, to examine the potential economics of the overall reserve and resource base.

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As at December 31, 2017, Pinto Valley had a measured and indicated resource estimate of more than 1.35-billion tonnes, grading 0.31% copper, and a total reserve estimate of 430-million tonnes, grading 0.3% copper.

However, the miner expects quarterly production will fluctuate throughout the year, given the anticipated grade variability.

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The average copper grade in 2019 is expected to be about 0.32%, with grades at 0.28% during the second quarter.

Further, Capstone anticipates publishing an updated technical report for its Cozamin copper/silver/lead operation, in Mexico, with mine plan and cost estimates to reflect the increased reserves announced in December.

Capstone also intends to start developing the underground haulage network from a two-way single ramp to a one-way ramp, to eliminate the production bottleneck and fill the mill to nameplate capacity.

This, the miner said in a statement on Thursday, is expected to result in about a 30% increase in expected throughput, to 3 780 t/d by the end of 2020.

Yearly production at the mine is intended to increase to between 40-million and 45-million pounds of copper.

Further, the strategic process, announced in the fourth quarter of 2018, to evaluate alternatives relating to the ownership of Capstone’s Santo Domingo copper/iron project, in Chile, will be completed in the first quarter of this year.

Alternatives under review include selling a portion of the project, as well as the potential for streaming opportunities given the gold reserve and cobalt resource, to help finance the project.

A technical and financial feasibility will be developed in the hopes of producing cobalt as a by-product by conducting a preliminary economic assessment for the cobalt opportunity.

In this regard, the miner said that it would continue to advance the project to be construction-ready by early 2020. 

EDITED BY: Chanel de Bruyn Creamer Media Senior Deputy Editor Online
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