VANCOUVER, Nov. 19, 2017
/PRNewswire/ - Copper Mountain Mining Corporation ("Copper
Mountain" or "CMMC") [TSX:CMMC] and Altona Mining Limited ("Altona"
or "AOH") [ASX:AOH] are pleased to jointly announce that they have
agreed to combine the companies by way of a Scheme of Arrangement
("Scheme") under the Australian Corporations Act 2001 pursuant to
which CMMC will acquire the entire issued capital of Altona (the
"Transaction").
The acquisition will be effected pursuant to a Merger
Implementation Deed ("MID") under which Altona has agreed to
propose the Scheme that would allow Altona to become a wholly owned
subsidiary of CMMC.
Under the Transaction, each share of Altona ("Altona Share")
will be exchanged for 0.0974 ("Exchange Ratio") of either a CHESS
Depositary Interest of CMMC ("CMMC CDI"), which will trade on the
Australian Securities Exchange ("ASX"), or, if elected, a CMMC
common share ("CMMC Share"), which trades on the Toronto Stock
Exchange ("TSX"). The total consideration offered for all of
the outstanding shares of Altona is valued at approximately
A$93 million and represents
A$0.17 per share1, a
41.7% premium to A$0.12, the closing
price of Altona shares on the day prior to the execution of the
MID.
Altona's key asset is the 100% owned undeveloped open pit
Cloncurry Copper Project ("Cloncurry") in Queensland, Australia, a mining friendly
jurisdiction. Cloncurry currently has a measured and indicated
mineral resource containing over 2 billion pounds (0.95 million
tonnes) of copper and an inferred resource of 1.6 billion pounds
(0.72 million tonnes) of copper. There is potential to add
resources at depth and along strike in each of the deposits, and
through exploration at numerous prospective targets within Altona's
approximate 397,000 hectare (3,970 sq km) land package.
CMMC's principal asset is the 75% owned large open pit Copper
Mountain Mine located in southern British
Columbia near the town of Princeton. CMMC has a strategic alliance with
Mitsubishi Materials Corporation which owns 25% of the Copper
Mountain Mine and purchases 100% of the copper concentrate produced
under a life of mine offtake agreement. CMMC is on track to achieve
production guidance for 2017 of 75-85 million pounds (34,000-38,500
tonnes) of copper2. The Copper Mountain mine has a
large resource that remains open laterally and at depth.
Directors and senior management of Altona have agreed to vote in
favour of the Scheme in the absence of a Superior
Proposal3 and subject to the Independent Expert
concluding the Scheme is in the best interest of shareholders.
Directors and senior management of Altona have provided voting
intention statements in favour of the Scheme.
________________________________________
1 Based on the 5 day trailing volume weighted
average price (VWAP) of CMMC and Altona on 17 November 2017.
2 Calculated on a 100% basis. CMMC owns 75% of the
Copper Mountain Mine.
3 See the definition of 'Superior Proposal' in the
MID
Highlights of the Proposed Combination
- A multi-jurisdictional, mid-tier copper producer.
- Annual potential copper production of approximately 160
million pounds (73,000 tonnes) of copper by 2020.
- Combined Proven and Probable Reserves of 2.1 billion pounds
(0.92 million tonnes) of copper.
- Combined Measured and Indicated Resources over 4.1 billion
pounds (1.8 million tonnes) of copper and an additional 3.6 billion
pounds (1.5 million tonnes) of copper in Inferred
Resources.
- One of the leading TSX/ASX listed copper production
companies, with significant production growth and exploration
potential in two tier-one mining jurisdictions.
- The combined company will have approximately C$78 million in cash.
- Enhanced trading liquidity in both Canada (TSX) and Australia (ASX).
- Pro forma market cap of approximately C$300 million, with CMMC shareholders owning
71.5% and Altona shareholders owning 28.5% of the combined
entity.
- The strength and complementary nature of Altona's assets,
management team, regional operating experience, and exploration
expertise gives CMMC a stronger platform to grow.
- CMMC's construction and operational experience are well
positioned to bring Cloncurry into production.
- Offer represents a 41.7% premium to Altona's price of
A$0.12 per share, being
the closing price on the day prior to the execution of the
MID.
- Major Altona shareholder
(Matchpoint) has indicated support for the Scheme.
Management Commentary
Mr Jim O'Rourke, President and
Chief Executive Officer of CMMC, commented: "Our Copper Mountain
Mine is an efficient, stable operation with a long life ahead of
it. At current copper prices, it is generating significant
cash flow. For some time, CMMC has patiently been evaluating cost
competitive opportunities to achieve a step-change in copper
production. Cloncurry exemplifies the criteria of low-risk,
near-term and high quality for which we have been seeking. We
intend to progress Cloncurry into production with the aim of
doubling CMMC's copper production profile to the range of 160
million pounds (73,000 tonnes) of copper per annum with significant
precious metals credits. This additional copper production is
timely to capitalize on the projected strong copper cycle."
Dr Alistair Cowden, Managing
Director of Altona, added: "We are delighted to join CMMC to form a
new high growth copper producer. We are excited to bring CMMC's
depth of experience in constructing and operating a large scale
open pit copper mine to bear upon the Cloncurry Copper Project.
Altona's shareholders will receive a premium and will also gain
immediate exposure to copper production just as copper prices have
recovered and market shortfalls are predicted over the near term.
This is a great opportunity for our shareholders to participate in
the creation of a leading mid-sized copper producer."
Merger Summary
CMMC and Altona have executed a MID under which Altona has
agreed to propose the Scheme that would allow Altona to become a
wholly owned subsidiary of CMMC. The consideration being
offered to Altona Shareholders is one CMMC CDI or CMMC share for
every 10.2669 Altona Shares, which represents 17 cents per share, a premium of 41.7% to
Altona's last price of A$0.12 as of
the close on 17 November 2017 and
based on CMMC's 5 day trailing VWAP from 17 November
2017.
In conjunction with the Scheme, CMMC will seek a listing on the
ASX and apply for quotation of CMMC shares in the form of CHESS
Depositary Interests ("CDIs"), which would enable Altona
shareholders to elect to receive the Scheme consideration in the
form of CMMC CDIs.
The Scheme is subject to customary conditions for a transaction
of this nature, which are set out in full in the MID. Major
conditions include:
- Approval being received from the shareholders of Altona and the
court in relation to the Scheme.
- Approval being received from the shareholders of CMMC and the
TSX for the issue of consideration shares.
- The Independent Expert concluding that the Scheme is in the
best interests of Altona shareholders.
- Approval for and quotation of CMMC CDIs on the ASX.
- Foreign Investment Review Board approval.
- Other customary regulatory and court approvals for a
transaction of this nature.
The parties have agreed that unless the MID is terminated,
Altona will not solicit any competing proposal or participate in
any discussions or negotiations in relation to any competing
proposal unless failure to do so would involve a breach of the
fiduciary duties of its Directors. Altona and CMMC have agreed to
pay a break fee of A$0.9 million in
certain circumstances leading to the Scheme not proceeding.
Benefits to Copper Mountain Shareholders
- Acquisition of the low risk Cloncurry Copper Project
("Cloncurry"), including significant copper and gold resources and
reserves, and a large mineral tenure position. The Cloncurry
project is located in one of the world's most prominent base metals
production regions in Queensland,
Australia, host to leading mines including Mt Isa,
Dugald River, Cannington and Ernest
Henry.
- Development of Cloncurry has the potential to double CMMC's
production profile, with the anticipated addition of over 80
million pounds (39,000 tonnes) of copper and 17,000 ounces of gold
per annum in concentrate based on Altona's updated Definitive
Feasibility Study ("DFS") completed in July
2017. The DFS states that the major required permits,
including Native Title, Mining Licenses and an Environmental
Authority, have been received.
- Significant increase in overall contained copper in Measured
and Indicated Resources (by 104% to 4.1 billion pounds of copper)
and Proven and Probable Reserves (by 87% to 2.0 billion pounds
(0.92 million tonnes of copper), in addition to regional discovery
potential surrounding Cloncurry.
- Asset and geographical diversification, providing a lower risk
profile for the combined entity.
- Exposure to Altona's large land package and their exploration
success in Australia.
- Increased market prominence in combination, leading to a
potential re-rating as a mid-tier copper producer.
Benefits to Altona Shareholders
- CMMC has an experienced management team with proven development
and mine operation capabilities, having expertise in financing,
building, commissioning and operating the 12-14 million tonnes per
annum open pit Copper Mountain Mine ("Copper Mountain Mine")
located in southern British Columbia,
Canada. CMMC will use this operational expertise to maximise
the value of Altona's Cloncurry project.
- With CMMC's annual production guidance of 75-85 million pounds
(34,000-38,500 tonnes) of copper in 2017, combined with 86 million
pounds (39,000 tonnes) of potential copper production from
Cloncurry, the combined entity has the potential to become a top 4
Australian copper producer.
- Altona shareholders to receive a significant premium of 41.7%
to Altona's closing share price on 17
November 2017, a 36.9% premium to Altona's trailing 10-day
volume weighted average price ("VWAP") and a 33.2% premium to
Altona's 20-day VWAP as of the close on 17
November 2017.
- Benefit of immediate cash flow from CMMC's production asset,
whilst retaining ongoing exposure to Cloncurry as it progresses
through development.
- Creation of a leading copper producing company with a
diversified portfolio of production and development assets that
will be uniquely positioned on the ASX.
Altona Board and Shareholder Support
The Altona Board are in favour of the Scheme and unanimously
recommend that Altona shareholders vote in favour of the Scheme, in
the absence of a Superior Proposal and subject to the Independent
Expert concluding that the Scheme is in the best interests of
Altona shareholders.
Each of Altona's directors and officers has entered into a
Support Deed undertaking to vote in favour of the Scheme, in the
absence of a Superior Proposal and subject to the Independent
Expert concluding that the Scheme is in the best interests of
Altona shareholders.
Altona's major shareholder, Matchpoint Asia Fund Limited, has
also indicated that it will vote in favour of the Scheme, in the
absence of a Superior Proposal and subject to the Independent
Expert concluding that the Scheme is in the best interests of
Altona shareholders.
CMMC Shareholder approval
CMMC is required to obtain the approval of the TSX and its
shareholders in connection with the issue of common shares under
the Scheme. Each of CMMC's directors and officers have agreed to
vote in favour of the required CMMC shareholder resolutions.
The CMMC Board unanimously recommends that CMMC shareholders
vote in favour of the issue of CMMC common shares contemplated by
the Scheme. The CMMC Board intends to vote any CMMC Shares in
respect of which they have the power to direct a vote in favour of
the necessary resolutions.
Management Team and Board of Directors
CMMC will continue to be headquartered in Vancouver, British Columbia and plans to
retain a regional office in Perth,
Australia on implementation of the Scheme. Dr Alistair Cowden, Managing Director of Altona,
will remain in his position until the Scheme closes, after which he
will be appointed to join the Board of Directors of CMMC and will
continue in an executive role in Australia.
Indicative Timetable
Full particulars of the Scheme, including terms and
recommendations will be provided to Altona shareholders through a
Scheme Booklet which will include an Independent Expert's Report by
KPMG Corporate Finance, a division of KPMG Financial Advisory
Services (Australia) Pty Ltd. The
indicative timetable for implementation of the Acquisition is
anticipated to be as follows:
Event
|
Indicative
Date
|
1st
Australian Court hearing to approve Scheme Booklet
|
6 February
2018
|
Scheme Booklet sent
to Altona shareholders
|
8 February
2018
|
Altona Scheme
meeting
|
15 March
2018
|
2nd
Australian Court hearing to approve Scheme
|
22 March
2018
|
Scheme becomes
effective
|
23 March
2018
|
Principal Advisors
CMMC's corporate adviser is Haywood Securities Inc., its
Canadian legal advisor is Farris, Vaughan, Wills & Murphy LLP
and its Australian legal advisor is Clayton
Utz.
Altona's corporate adviser is Hartleys Limited, its Australian
legal advisor is Gilbert + Tobin and its Canadian Legal advisor is
Fasken Martineau LLP.
Conference Call and Webcast
CMMC will host a conference call and webcast on Monday,
20 November 2017 at 8:00 am PST for members of the investment
community to discuss the transaction. Participants may join the
conference call using the following call-in details. This
discussion will be followed by a question-and-answer period with
investors:
Live dial-in
information
|
Toronto and
international:
|
647-427-7450
|
North America
(toll-free):
|
1-888-231-8191
|
To participate in the webcast live via your computer go to:
http://event.on24.com/r.htm?e=1554144&s=1&k=3081F0A87D877FEAD56715CD4EA46D87
Replay call
information
|
Toronto and
international:
|
416-849-0833, passcode 5689618
|
North America
(toll-free):
|
1-855-859-2056, passcode
5689618
|
The conference call replay will be available from 10:30 am (PDT) on November
20, 2017, until 11:59 pm PST
on December 4, 2017. Participant
audio webcast will also be available on the Company's website at
http://www.CuMtn.com
About Copper Mountain Mining Corporation
CMMC's principal asset is the 75% owned large open pit Copper
Mountain Mine located in southern British
Columbia near the town of Princeton. CMMC has a strategic alliance with
Mitsubishi Materials Corporation which owns 25% of the Copper
Mountain Mine and purchases 100% of the copper concentrate produced
under a life of mine offtake agreement. CMMC is on track to achieve
production guidance for 2017 of 75-85 million pounds of copper. The
Copper Mountain mine has a large resource of copper that remains
open laterally and at depth. This significant exploration potential
is being evaluated over the next few years in order to fully
appreciate the property's development potential. Additional
information is available on CMMC's web page at www.cumtn.com.
About Altona Mining Limited
Altona's principal asset is the Cloncurry Copper Project in
Queensland, Australia found within
a dominant 3,970 sq km land package in the highly prospective Mt.
Isa inlier. It is envisaged that a 7 million tonnes per annum open
pit copper-gold mine and concentrator will be developed. The
development is permitted with proposed annual production of 39,000
tonnes of copper and 17,200 ounces of gold for a minimum of 14
years. The Definitive Feasibility Study was refreshed in
August 2017.
Competent Person's Statement: Cloncurry Project
The information in this report that relates to Exploration
Targets, Exploration Results, Mineral Resources or Ore Reserves for
the Cloncurry Project is based on information compiled by Dr
Alistair Cowden, BSc (Hons), PhD,
MAusIMM, MAIG and Mr Roland Bartsch,
BSc (Hons), MSc, MAusIMM. Dr Cowden and Mr Bartsch are full
time employees of Altona and have sufficient experience which is
relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Dr Cowden and Mr Bartsch consent to
the inclusion in the report of the matters based on their
information in the form and context in which it appears.
Please note that full JORC 2012 disclosure of Resources and
Reserves is provided in the ASX release of 2
August 2017 entitled "The Cloncurry Project: JORC 2012
Disclosure" and accompanying release revised on 27 September 2017 entitled "Updated DFS Delivers
Bigger and Better Cloncurry Project".
Competent Person's Statement: Copper Mountain Mine
The information in this report that relates to Exploration
Targets, Exploration Results, Mineral Resources or Ore Reserves for
the Copper Mountain Mine is based on information compiled from
public disclosure by TSX listed Copper Mountain Limited (CMMC) by
Dr Alistair Cowden, BSc (Hons), PhD,
MAusIMM, MAIG and Mr Roland Bartsch,
BSc (Hons), MSc, MAusIMM. Dr Cowden and Mr Bartsch are full
time employees of Altona and have sufficient experience which is
relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Dr Cowden and Mr Bartsch consent to
the inclusion in the report of the matters based on their
information in the form and context in which it appears.
Please note that Canadian Mineral Resource and Reserve estimates
as adopted by listed entities in Canadian Securities Exchanges are
classified according to the CIM Definition Standards in the manner
of the JORC Code and NI 43-101 disclosure corresponds to that
required by the JORC Code. Disclosure by CMMC in the most
recent NI 43-101 report complies with the CIM Guidelines, which are
closely related to the JORC Code in their key definitions. The
CMMC resources and reserves can therefore be quoted as 'qualifying
foreign estimates' according to ASX Listing rules. The most
recent disclosure of resources and reserves can be found on SEDAR
at www.sedar.com. The most recent disclosure by CMMC is in the
CMMC Annual Information Form dated 30 March
2017.
The qualifying foreign estimates have not been reported in
accordance with the JORC Code. A competent person has not done
sufficient work to classify the foreign estimates as mineral
resources or ore reserves in accordance with the JORC Code. It is
uncertain that following evaluation and/or further exploration word
that the foreign estimates will be able to be reported as mineral
resources or ore reserves in accordance with the JORC Code.
Qualified Persons
Mr Peter Holbek, P.Geo. and Vice
President Exploration of CMMC, is the Qualified Person who has
reviewed and approved CMMC's mining technical information included
in this news release.
Dr Alistair Cowden, BSc (Hons),
PhD, MAusIMM, MAIG and Mr Roland Bartsch,
BSc (Hons), MSc, MAusIMM are full time employees of Altona
in the positions of Managing Director and General Manager,
Exploration for Altona, are the Qualified Persons who have reviewed
and approved Altona's mining technical information included in this
news release.
Cautionary Forward-Looking Statements
This press release contains certain statements that constitute
forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"), which
reflect management's expectations regarding CMMC's future growth,
results of operations (including, without limitation, future
production and capital expenditures), performance (both operational
and financial) and business prospects (including the timing and
development) and opportunities. Wherever possible, words such as
"plans", "indications", "potential", "estimates", "predicts",
"forecasts", "anticipate" or "does not anticipate", "believe",
"intend", "ability to" and similar expressions or statements that
certain actions, events or results "may", "could", "would",
"might", "will", or are "likely" to be taken, occur or be achieved,
have been used to identify such forward looking information.
Specific forward-looking statements in this news release include
completion of the Scheme, CMMC's listing on the ASX, projected
production profile, anticipated growth in copper resources and
reserves particularly at Cloncurry, re-rating of the combined
entity, the completion of construction of the Cloncurry Copper
Project, potential to explore other target areas close to the
Cloncurry Copper Project, and the estimated combined market
capitalization of CMMC and Altona. Although the forward-looking
information contained in this news release reflect management's
current beliefs based upon information currently available to
management and based upon what management believes to be reasonable
assumptions, CMMC cannot be certain that actual results will be
consistent with such forward looking information. Such
forward-looking statements are based upon assumptions, opinions and
analysis made by management in light of its experience, current
conditions and its expectations of future developments that
management believe to be reasonable and relevant but that may prove
to be incorrect. These assumptions include, among other things, the
ability to obtain all requisite approvals, including that of the
CMMC and Altona shareholders, the Australian court, the TSX and the
Foreign Review Board, the accuracy of mineral reserve and mineral
resource estimates, copper prices, exchange rates, energy costs,
future economic conditions, anticipated future estimates of cash
flow and courses of action. CMMC cautions you not to place undue
reliance upon any such forward-looking statements.
The risks and uncertainties that may affect forward-looking
statements include, among others: general business, economic,
competitive, political and social uncertainties; the actual results
of current exploration activities, the actual results of
reclamation activities; integration results of the CMMC and Altona
management and operating teams, conclusions of economic
evaluations; fluctuations in the value of the Canadian dollar
relative to the United States
dollar and the Australian dollar and vice versa; changes in project
parameters as plans continue to be refined; changes in labour costs
other costs of equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry,
including but not limited to environmental hazards, cave-ins,
pit-wall failures, flooding, rock bursts and other acts of God or
unfavourable operating conditions and losses, detrimental events
that interfere with transportation of concentrate or the smelters
ability to accept concentrate, including declaration of Force
Majeure events, insurrection or war; delays in obtaining
governmental approvals or financing or in the completion of
development or construction activities, and the factors discussed
in the section entitled "Risk Factors" in the CMMC Annual
Information Form dated March 30,
2017, and in other filings of CMMC with securities and
regulatory authorities which are available at www.sedar.com. CMMC
does not undertake any obligation to update forward-looking
statements should assumptions related to these plans, estimates,
projections, beliefs and opinions change. Nothing in this report
should be construed as either an offer to sell or a solicitation to
buy or sell CMMC securities.
This press release is dated as of the date on the first page.
All references to CMMC include its subsidiaries unless the context
requires otherwise.
The Toronto Stock Exchange neither approves nor disapproves the
information contained in this News Release.
Annexures
Annexure A: Copper Mountain Mine: Resources and
Reserves
Annexure B: Cloncurry Copper Project: Resources and
Reserves
ANNEXURE A: Copper Mountain Mine - Resources and
Reserves
(Source: Annual Information Form, Copper Mountain Mining
Corporation, for the year ended 31 December
2016 (Dated as of March
2017))
Resources
|
|
|
|
|
|
|
|
|
|
Cut
Off
|
Category
|
Tonnage
(Mt)
|
Copper
Grade
(%)
|
Gold
Grade
(g/t)
|
Silver
Grade
(g/t)
|
Contained
Copper
(tonnes)
|
Contained
Copper
(Mlbs)
|
Contained
Silver
(Moz)
|
Contained
Gold
(Moz)
|
0.18%
copper
|
Measured and
Indicated
|
221
|
0.33
|
0.10
|
1.30
|
719,397
|
1586
|
9.21
|
0.74
|
|
Inferred
|
228
|
0.27
|
0.14a
|
0.79a
|
815,558
|
1373
|
5.81
|
1.04
|
0.12%
copper
|
Measured and
Indicated
|
350
|
0.26
|
0.09
|
1.01
|
815,558
|
2013
|
11.40
|
0.98
|
|
Inferred
|
426
|
0.21
|
0.11a
|
0.63a
|
815,558
|
2022
|
8.69
|
1.56
|
|
|
|
|
|
|
|
|
|
|
Reserves
|
|
|
|
|
|
|
|
|
Cut
Off
|
Category
|
Tonnage
(Mt)
|
Copper
Grade
(%)
|
Gold
Grade
(g/t)
|
Silver
Grade
(g/t)
|
Contained
Copper
(tonnes)
|
Contained
Copper
(Mlbs)
|
Contained
Silver
(Moz)
|
Contained
Gold
(Moz)
|
0.18%
copper
|
Proved
|
53b
|
0.36
|
0.11
|
1.43
|
189,601
|
418
|
2.44
|
0.18
|
|
Probable
|
69
|
0.30
|
0.11
|
1.15
|
208,199
|
459
|
2.57
|
0.23
|
|
Total
|
122b
|
0.32
|
0.11
|
1.27
|
397,800
|
860
|
4.98
|
0.42
|
0.12%
copper
|
Proved
|
74
|
0.30
|
0.09
|
1.18
|
219,992
|
485
|
2.78
|
0.22
|
|
Probable
|
110
|
0.24
|
0.09
|
0.92
|
269,434
|
594
|
3.27
|
0.31
|
|
Total
|
184
|
0.27
|
0.09
|
1.02
|
489,426
|
1080
|
6.05
|
0.53
|
|
Low Grade
Stockpile
|
34
|
0.16
|
|
|
54,431
|
120
|
|
|
Reserves and Resources as of 31
December 2016.
Mineral Resources have been reported as inclusive of Ore
Reserves.
The resource and reserve estimation was completed by Copper
Mountain mine and exploration staff under the supervision of
Peter Holbek, P.Geo. Vice President
of Exploration and a Qualified Person under National Instrument
43-101. Mr. Holbek has verified the methods used to determine grade
and tonnage in the geological model, and mine plan. Numbers
may not add due to rounding. aInferred
resources includes mineralization in the Ingerbelle deposit where
gold and silver grades have been estimated based on correlation to
copper grades from historical production data; these grades are
significantly lower for Ag and higher for Au when compared to
Copper Mountain grades. bDoes not include
an approximate 4Mt stockpile at an estimated 0.21% Cu
grade.
ANNEXURE B: Cloncurry Copper Project - Resources and
Reserves
Summary of Mineral Resource Estimates for the Cloncurry
Copper Project
|
|
|
|
|
|
Deposit
|
Total
|
Contained
Metal
|
Measured
|
Indicated
|
Inferred
|
Tonnes
(millions)
|
Cu
(%)
|
Au
(g/t)
|
Copper
(tonnes)
|
Gold
(ounces)
|
Tonnes
(million)
|
Cu
(%)
|
Au
(g/t)
|
Tonne
(million)
|
Cu
(%)
|
Au
(g/t)
|
Tonnes
(million)
|
Cu
(%)
|
Au
(g/t)
|
Deposit in Mine
Plan
|
Little Eva
|
105.9
|
0.52
|
0.09
|
546,000
|
295,000
|
37.1
|
0.60
|
0.09
|
45.0
|
0.46
|
0.08
|
23.9
|
0.50
|
0.10
|
Turkey
Creek
|
21.0
|
0.59
|
|
123,000
|
-
|
-
|
-
|
|
17.7
|
0.59
|
|
3.4
|
0.58
|
-
|
Ivy Ann
|
7.5
|
0.57
|
0.07
|
43,000
|
17,000
|
-
|
-
|
-
|
5.4
|
0.60
|
0.08
|
2.1
|
0.49
|
0.06
|
Lady
Clayre
|
14.0
|
0.56
|
0.20
|
78,000
|
85,000
|
-
|
-
|
-
|
3.6
|
0.60
|
0.24
|
10.4
|
0.54
|
0.18
|
Bedford
|
4.8
|
0.80
|
0.21
|
38,000
|
32,000
|
-
|
-
|
-
|
2.3
|
0.95
|
0.23
|
2.5
|
0.66
|
0.19
|
|
Sub-total
|
153.3
|
0.54
|
0.09
|
828,000
|
429,000
|
37.1
|
0.60
|
0.09
|
74.0
|
0.52
|
0.07
|
42.2
|
0.53
|
0.11
|
Other
Deposits
|
Blackard
|
76.4
|
0.62
|
-
|
475,000
|
-
|
27.0
|
0.68
|
-
|
6.6
|
0.60
|
-
|
42.7
|
0.59
|
-
|
Scanlan
|
22.2
|
0.65
|
-
|
143,000
|
-
|
-
|
-
|
-
|
18.4
|
0.65
|
-
|
3.8
|
0.60
|
-
|
Longamundi
|
10.4
|
0.66
|
-
|
69,000
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
10.4
|
0.66
|
-
|
Legend
|
17.4
|
0.54
|
-
|
94,000
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
17.4
|
0.54
|
-
|
Great
Southern
|
6.0
|
0.61
|
-
|
37,000
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
6.0
|
0.61
|
-
|
Caroline
|
3.6
|
0.53
|
-
|
19,000
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3.6
|
0.53
|
-
|
Charlie
Brown
|
0.7
|
0.40
|
-
|
3,000
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
0.7
|
0.40
|
-
|
|
Sub-total
|
136.7
|
0.61
|
-
|
840,000
|
-
|
27.0
|
0.68
|
-
|
25.0
|
0.64
|
|
84.7
|
0.59
|
-
|
Total
|
290.0
|
0.58
|
0.05
|
1,668,000
|
429,000
|
64.1
|
0.63
|
0.05
|
99.0
|
0.55
|
0.05
|
126.9
|
0.57
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JORC 2012 Disclosure is provided in ASX Release of
2 August 2017 entitled "The Cloncurry
Project: JORC 2012 Disclosure".
Little Eva is reported above a 0.2% copper lower cut-off
grade, all other deposits are above 0.3% lower copper
cut-off.
Mineral Resources have been reported as inclusive of Ore
Reserves.
Summary of Ore Reserves Estimates for the Cloncurry Copper
Project
|
|
|
|
|
|
Reserve
Classification
|
Tonnes
|
Copper
(%)
|
Gold
(g/t)
|
Copper
(tonnes)
|
Gold
(ounces)
|
Little
Eva
|
|
|
|
|
|
Proved
|
31,000,000
|
0.64
|
0.08
|
198,200
|
84,700
|
Probable
|
22,100,000
|
0.50
|
0.09
|
109,900
|
62,600
|
Turkey
Creek
Probable
|
|
|
|
|
|
11,300,000
|
0.46
|
0
|
52,100
|
0
|
Ivy
Ann
|
|
|
|
|
|
Probable
|
3,500,000
|
0.59
|
0.08
|
21,000
|
9,100
|
Lady
Clayre
|
|
|
|
|
|
Probable
|
920,000
|
0.56
|
0.27
|
5,100
|
8,100
|
Bedford
|
|
|
|
|
|
Probable
|
1,350,000
|
0.85
|
0.20
|
11,600
|
8,500
|
Total Proved and
Probable Reserves (excl.
stockpiles)
|
70,200,000
|
0.57
|
0.08
|
397,400
|
173,000
|
Little Eva Low
Grade Stockpile
|
|
|
|
|
|
Probable
|
15,400,000
|
0.18
|
0.06
|
28,100
|
30,900
|
Total (including
stockpile)
|
85,600,000
|
0.50
|
0.07
|
426,000
|
203,900
|
See ASX release dated 2 August
2017.
Little Eva and Turkey Creek are reported above a 0.16% copper
lower cut-off grade, for Bedford
0.17% copper, for Lady Clayre 0.20%
copper and for Ivy Ann 0.22%
copper.
All data has been rounded to two significant figures.
Discrepancies in summations may occur due to rounding.
SOURCE Copper Mountain Mining Corporation